Alaris Boosts Distribution by 9% Following Recent Investments
Alaris Equity Partners Announces Exciting Developments
Alaris Equity Partners is thrilled to share noteworthy news regarding their investments and a distribution increase. The company has recently completed three significant investments totaling US$52.7 million. These investments are expected to enhance Alaris' growth trajectory and further strengthen its commitments to its partners.
Recent Investments and Growth
The recent investments by Alaris include a US$27 million initial allocation towards McCoy Roofing Holdings LLC, a prominent name in the roofing service industry. Their extensive operational experience in residential roofing showcases their robust customer service ethics and commitment to quality.
Building on Partner Success
Alongside McCoy, follow-on investments were made in established partners like Cresa LLC and Carey Electric Contracting Inc. These investments not only signify Alaris' confidence in their existing portfolio but also reflect its steadfast approach to nurturing growth within its partner network.
Distribution Increase Announcement
In light of these developments and a strong existing partner performance, Alaris is pleased to announce a 9% increase in its distribution. The Board of Trustees has endorsed this decision, enhancing the quarterly distribution to $0.37 per trust unit and marking an annual distribution of $1.48. This strategic decision aligns with their balancing act of sustaining a payout ratio below 65%-70%.
Words from Leadership
Steve King, the President and CEO of Alaris, expressed enthusiasm over welcoming McCoy into their growing portfolio. King highlighted that since Alaris' inception in 2004, it has successfully invested in 43 portfolio companies, translating into over $2.9 billion in capital provided to partners.
Investing in Future Success
The dynamics of the investments made showcase Alaris' ambition to cultivate future growth. The common equity holdings now extend to 15 partnerships within Alaris’ sector. This enables both Alaris and its unitholders to reap the benefits of the increasing value created by their partners.
Exploring New Opportunities
As Alaris navigates through the financial landscape, the opportunities on the horizon present a positive outlook. With a robust investment pipeline, continued distribution increases from partners, and a strong payout ratio, Alaris is optimistic about the future.
Understanding McCoy Roofing's Role
Founded in 2007, McCoy Roofing stands out as a leading enterprise in roofing and storm restoration services across the Midwest. The firm specializes in residential insurance restoration projects and has vast expertise in various aspects of exterior home improvement such as roofing, gutters, and windows. Alaris’ investment includes US$19 million in preferred equity and US$8 million in common equity, promising an enticing yield for stakeholders.
Commitment from McCoy's Leadership
Co-Owners Landon Wrinkle and Lee McCoy highlighted their excitement in partnering with Alaris, noting the alignment of values and future aspirations which they believe will facilitate their growth.
Follow-On Investments in Cresa and Carey
Alaris is also delighted to announce additional investments in both Cresa and Carey. The investment in Cresa totals US$50.5 million, alongside a pronounced increase in annualized distribution to US$7.1 million. This will provide Cresa with necessary resources to execute strategic acquisitions and bolster its position in the real estate advisory sector.
Strengthening Connections
Additionally, Alaris’ recent US$5.2 million investment in Carey has fueled an increase in the preferred equity stake to US$14.5 million and raised the common equity investment to US$4.7 million. This propelled Carey’s annualized distribution by 16%, solidifying their growth path.
Portfolio Performance Overview
Across the board, the performance of Alaris’ portfolio reflects a fruitful mix of resilience and growth. Notably, Ohana Growth Partners has effectively expanded its operations through the acquisition of a Planet Fitness franchisee, further amplifying its market presence and cash flows.
Additional Corporate Updates
Overall, Alaris remains positioned for ongoing growth, with its diversified portfolio backed by strong partner executions and a solid customer foundation. The company continues to pursue strategies that promise long-term value creation for both partners and unitholders.
Frequently Asked Questions
What is Alaris Equity Partners?
Alaris Equity Partners is an investment trust that focuses on providing capital to private businesses through structured equity investments.
What recent investments has Alaris made?
Alaris recently completed investments totaling US$52.7 million, which includes a significant investment in McCoy Roofing Holdings LLC and follow-on investments in existing partners.
What is the new distribution amount for unitholders?
The new quarterly distribution amount is set to be $0.37 per trust unit, marking an increase of 9%.
How does Alaris support its partner companies?
Through strategic investments and a collaborative approach, Alaris fosters growth opportunities and enhances the operational success of its partner companies.
How can I get in touch with Alaris Equity Partners?
For inquiries, you can reach Alaris at ir@alarisequity.com or call (403) 260-1457.
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