Core Viewpoint - Alaris Equity Partners has completed a significant investment of CAN$115.5 million into Optimus SBR Inc. and Optimus SBR Limited Partnership, marking a strategic partnership aimed at enhancing growth and operational capabilities in the management consulting sector [1][4]. Company Overview - Optimus SBR, founded in 2010 and headquartered in Toronto, is recognized as Canada's largest independent management consulting firm, specializing in addressing complex operational, strategic, and technological challenges across various industries including financial services, government, and healthcare [2]. - The firm emphasizes an execution-focused approach and a people-first culture, aiming to deliver measurable results and sustainable growth for its clients [2]. Investment Details - Alaris' investment comprises CAN$85.0 million in preferred equity and CAN$30.5 million in common equity, with the preferred equity yielding an initial annualized distribution of CAN$11.1 million, equating to a pre-tax annualized yield of 13% [4]. - The distribution will adjust annually based on the percentage change in Optimus SBR's annual revenue, with a collar of +/-8% [4]. - The investment is intended to provide liquidity to equity holders and support Optimus SBR's growth initiatives [4]. Strategic Alignment - The partnership aligns with both companies' visions and values, focusing on empowering organizations to navigate challenges related to AI, digital transformation, and regulatory changes [3][5]. - Alaris views Optimus SBR as a highly sought-after asset in the Canadian consulting market, particularly due to its established reputation in the banking industry [5]. Financial Performance and Outlook - Following the investment in Optimus SBR, Alaris has deployed approximately CAN$343.5 million in capital year-to-date, indicating a strong market environment for its investment strategy [6]. - The Trust aims to continue deploying capital into high-quality partners to generate stable cash flows and enhance long-term value for unitholders [6][7].

Financial Data and Key Metrics Changes - Revenue in the second quarter increased by 9% year over year to $186.9 million, with non-GAAP net income, EPS, and EBITDA surpassing the record-setting 2024 by 6%, 8%, and 8% respectively [5][6][14] - Year-to-date revenue on a constant currency basis reached $367.6 million, with non-GAAP EBITDA of $47.7 million resulting in a margin of 13% [13][14] - The company is raising its revenue guidance for the full fiscal year 2025 to a range of $730 million to $745 million, compared to the previous range of $715 million to $735 million [14] Business Line Data and Key Metrics Changes - Seven of the eleven practices experienced year-over-year growth, with antitrust and competition economics, energy, intellectual property, and labor and employment practices each posting double-digit revenue growth [5][6] - Revenue from legal and regulatory services increased by nearly 11%, supported by a significant rise in total case filings and court judgments [7] - The energy practice continues to see strong demand, particularly in utilities, driven by changes in federal renewable incentives and increased electricity demand from data centers [11][12] Market Data and Key Metrics Changes - Worldwide M&A activity reached nearly $2 trillion during 2025, an increase of 33% compared to the previous year, marking the strongest opening period for deal-making since 2022 [8] - The antitrust and competition economics practice achieved its highest quarterly revenue, reflecting strong demand in both North America and internationally [27] Company Strategy and Development Direction - The company is focused on maximizing long-term value per share and is committed to strategic priorities, as evidenced by recent leadership promotions aimed at enhancing corporate support for high-value strategic initiatives [19][46] - The company is cautious about pursuing larger acquisitions unless they align with long-term strategic goals, emphasizing a focus on strategic fit rather than chasing revenue [43] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the company's future, citing strong lead flow activity and continuity in delivering profitable revenue growth [25] - There is awareness of potential disruptions from geopolitical factors, but overall visibility into the business remains stable [25] Other Important Information - The company concluded the quarter with $19.4 million in cash and $120 million in borrowings, resulting in a net debt of $100.6 million [17] - During the second quarter, the company returned $46.6 million to shareholders through dividends and share repurchases [18] Q&A Session Summary Question: Drivers behind the guidance raise and visibility levels - Management highlighted strong performance in 2025 and continuity from fiscal 2024, with no significant changes in visibility despite potential geopolitical disruptions [24][25] Question: Changes in M&A regulatory needs and deal sizes - The antitrust practice reported strong demand, with no noticeable shifts in deal sizes or complexity, and continued engagement in large prominent matters [27][28] Question: Pricing environment and rate increases - Rate increases for fiscal 2025 have been successfully implemented, with clients continuing to demand value alongside efficiency in service delivery [31][32] Question: Share repurchase activity timing - Most share repurchase activity occurred in Q2, with a significant portion executed in the latter part of the quarter [34] Question: Energy practice scaling and inorganic growth - The energy practice is focusing on internal growth and skill set enhancement, with ongoing exploration for strategic acquisitions [42][43] Question: Management appointments and their purpose - New roles aim to enhance corporate support for strategic initiatives, raising the value of services provided to consulting colleagues [46] Question: Hiring trends and college recruitment - The company is welcoming over 100 recent graduates, maintaining a typical hiring class size while focusing on growth in specific practices [48][50]