Alaris Equity Partners Completes Key Strategic Recapitalization
ALARI The recent agreement involves Alaris through its wholly-owned subsidiary, Alaris Equity Partners USA, Inc., partnering with Ohana, a well-established Planet Fitness® franchisee. This strategic recapitalization showcases Alaris's expertise and its ability to attract substantial investments. The financial details reveal that Alaris secured a remarkable $120 million in capital from a third-party private equity investor, in addition to rolling over $130 million of its investment in Ohana. Through this transaction, Alaris has successfully elevated its total managed assets to over CAD$2.2 billion, with third-party assets under management surpassing $520 million. This growth in AUM bolsters Alaris's position in the market and reflects confidence from investors entrusting their capital with the firm. The innovative transaction allows Alaris to exchange its previous investments in Ohana for new equity positions. Alaris opted to relinquish $130 million in existing preferred and common equity to secure a more advantageous portfolio involving $59.7 million of senior convertible preferred equity and $70.3 million of newly issued common equity. Such a move enhances the firm's return profile significantly. In line with its proactive asset management strategy, Alaris is now positioned as a controlling investor in Ohana. This relationship signifies Alaris's commitment to shaping the future growth and operational strategy of Ohana. The partnership is built on trust and mutual goals, ensuring that both entities benefit from each other's successes. The leaders of both organizations have expressed enthusiasm about this renewed partnership. Victor Brick, Executive Chairman of Ohana Growth Partners, remarked on the lasting relationship with Alaris, emphasizing their important role in Ohana's growth trajectory. The success of this venture represents a culmination of over a decade of collaboration. The financial structure established through the recapitalization includes annual management fees and a carried interest linked to Alaris’s performance with the new Third-Party Investment in Ohana. This fosters a stronger alignment of interests between Alaris and its stakeholders while propelling the growth of Ahana as they work together to enhance operational efficiency. Alaris provides alternative financing options to private companies, generating stable cash flows that benefit unitholders. The Trust aims to ensure a strong financial return while minimizing risk through partnerships. Ohana Growth Partners emerged in 2008 and has significantly expanded its operations, currently managing over 80 Planet Fitness® clubs. Their growth strategy, supported by Alaris's recent investment, is poised for further expansion, highlighting a promising future in the fitness franchise sector. Alaris Equity Partners completed a strategic recapitalization with Ohana Growth Partners, securing significant capital investment to enhance their asset management strategy. Alaris secured $120 million from a third-party investor and rolled over $130 million of its investment in Ohana, enhancing its managed assets. This transaction allows Alaris to elevate its total managed assets to over CAD$2.2 billion while establishing a controlling interest in Ohana. The partnership with Alaris is set to enhance Ohana's strategic growth and operational efficiency, providing a stronger foundation for future expansions. Alaris will manage the investments, receiving management fees and a carried interest based on performance, aligning their interests closely with the growth of Ohana.The Transaction Overview
Financial Implications and Benefits
A Strategic Call for Sustainability
A New Chapter for Alaris and Ohana
Insights from Leadership
Operational Growth and Future Prospects
About Alaris and Ohana
Frequently Asked Questions
What is the recent transaction by Alaris Equity Partners?
How much capital did Alaris secure in the transaction?
What are the benefits of this transaction for Alaris?
How does this affect the future of Ohana Growth Partners?
What role does Alaris play in the management of Ohana?
