Alaris Equity Partners Income Trust (TSX:AD.UN)

Financial

Alaris Equity Partners Income Trust is a Canadian private equity firm that provides alternative financial solutions to private companies.

The open-ended investment trust acquired all outstanding common stocks of Alaris Royalty Corp in return for its trust units. As part of the agreement, Alaris Royalty Corp was rebranded as Alaris Equity Partners Inc, now a wholly owned subsidiary of the trust. The trust was listed on the Toronto Stock Exchange in September 2020 under the symbol ‘AD.UN’.

Alaris Equity Partners provides alternative finance solutions to private companies in return for interest or share in cash flow and dividend distribution. The company serves the long-term capital requirements of its partner companies by purchasing non-controlled preferred equity shares. Thus, it allows the partners to maintain and control their individual businesses.

The open-ended trust primarily invests in non-controlling preferred equity of lower middle market companies across North America. The company helps its partner companies by providing specialized services related to mature investments, management buyouts, middle market, growth capital, etc. The portfolio of private company partners is focused on specific industries, including business management, health care sector, industrial sector, professional services, information technology sector and construction related services.

The portfolio of partners presently consists of the following companies:
• GWM Holdings, Inc
• Fleet Advantage, LLC
• Carey Electric Contracting, LLC
• Stride Consulting LLC
• Body Contour Centers, LLC
• Amur Financial Group Inc
• 3E LLC
• Brown & Settle Investments, LLC

On January 7, 2021, Alaris Equity Partners Income Trust made an investment amounting to US$34.0 million on Edgewater Technical Associates, LLC and US$40.0 million on Falcon Master Holdings LLC.

In February 2021, Alaris Equity Partners USA, Inc., a 100 per cent owned subsidiary of Alaris, invested US$66.0 million in Brown & Settle Investments, LLC and its subsidiaries. Further through its US-based subsidiary Alaris invested US$30.0 million on 3E, LLC and US$8.0 million on Accscient, LLC. In addition, it claims to increase the credit facility of its subsidiary from US$373 million to US$400 million.