Alaris Equity Partners Expands Investments and Boosts Distributions
Alaris Equity Partners Expands Investments and Distribution
In a recent announcement, Alaris Equity Partners has made significant strides by completing three new investments totaling US$52.7 million. This move is set to enhance Alaris' revenue growth, contributing an additional US$6.6 million, marking a 4.3% increase in partner distributions. Among the major investments is the US$27.0 million in McCoy Roofing Holdings LLC, recognized for its exceptional residential roofing services.
Investment Highlights
Alaris has made follow-on investments in existing partnerships, such as Cresa LLC and Carey Electric Contracting Inc., while supporting McCoy as it broadens its operational reach. Alaris’ acquisition by a trusted partner, Ohana Growth Partners LLC, of a Planet Fitness franchisee with ten locations indicates a robust growth trajectory. Additionally, the successful partners continue to thrive, driving the strength of Alaris' own equity in the process.
Distribution Increase Announcement
Aligned with these new investments and a solid foundation in its existing partner base, Alaris announced a 9% increase to its distributions. The updated quarterly distribution is now set at $0.37 per trust unit, pushing the annual distribution to $1.48. This decision reflects the Trust's ongoing commitment to delivering value to its unitholders while maintaining a payout ratio below the targeted range of 65%-70%.
Statements from Leadership
Steve King, President and CEO of Alaris, expressed excitement regarding these developments. He stated, "We are eager to welcome McCoy into our portfolio, and we’re proud to support the growth of existing partners like Cresa, Carey, and Ohana. Since our inception, we’ve built partnerships with 43 companies, delivering over $2.9 billion in capital. Our sustained success in the North American private equity market has set the stage for continued growth." King emphasized the importance of common equity investments, stating that they enable Alaris to fully participate in value creation generated by its partners.
About McCoy Roofing Holdings LLC
Established in 2007, McCoy Roofing specializes in residential insurance restoration stemming from severe weather events. It has built a solid reputation for quality service, expanding its footprint into various Midwestern markets, including Omaha and Lincoln. Alaris’ investment comprises US$19.0 million in preferred equity and an additional US$8 million in common equity, positioning it for future growth. If McCoy meets its financial targets, Alaris has committed to funding up to an additional US$32.0 million to further solidify this partnership.
Follow-On Investments in Cresa and Carey
The Trust has recently allocated US$20.5 million to Cresa, pushing its total investment to US$50.5 million. This investment is expected to raise Cresa’s annualized distribution significantly, enhancing its revenue capabilities through a strategic acquisition that will add scale to its operations as a leading real estate advisory firm. Meanwhile, another investment of US$5.2 million in Carey reflects growth for both companies, pushing Carey’s annualized distribution to $2.2 million.
Positive Future Outlook
Overall, Alaris shows a well-diversified portfolio adapting to market conditions while maintaining a growth-focused strategy. The outlook remains positive as Alaris continues to explore new investment opportunities while maintaining substantial returns for its unitholders. The recent growth is expected to sustain, given the strong trends in various sectors within the portfolio.
Frequently Asked Questions
What is Alaris Equity Partners?
Alaris Equity Partners is a Trust that invests primarily in private businesses through structured equity, aiming for stable returns and long-term growth.
What are the recent investments made by Alaris?
Alaris recently completed three significant investments totaling US$52.7 million, including McCoy Roofing, alongside follow-on investments in Cresa and Carey.
How much has Alaris increased its distributions?
Alaris announced a 9% increase in its distributions, bringing the quarterly distribution to $0.37 per trust unit.
Who is the CEO of Alaris Equity Partners?
Steve King serves as the President and CEO of Alaris Equity Partners, leading its strategic direction.
What industries does Alaris invest in?
Alaris invests in a diverse range of industries, focusing primarily on private equity, real estate, and service-oriented companies.
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