Alaris Equity Partners Income Trust Trust Units Reg S 3c7 · TSX:AD.UN
Alaris Equity Partners Income Trust Trust Units Reg S 3c7 — Alaris Equity Partners Income Trust — Investor Presentation (March 2025)
30 slides from Alaris Equity Partners Income Trust Trust Units Reg S 3c7's investor presentation, March 2025
Slide 1: Investor Presentation
INVESTOR PRESENTATION MARCH 2025
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This corporate presentation contains forward-looking information and forward-looking statements (collectively, “forward-looking statements”) under applicable securities laws, including any applicable “safe harbor” provisions. Statements other than statements of historical
Slide 3: Forward Looking Statements
FORWARD LOOKING STATEMENTS There can be no assurance that the assumptions, plans, intentions or expectations upon which these forward-looking statements are based will occur. Forward-looking statements are subject to risks, uncertainties and assumptions and should not be read as guarantees or assura
Slide 4: US Investor Disclosure
US INVESTOR DISCLOSURE The securities of Alaris Equity Partners Income Trust (“Alaris” or the “Trust”) have not been and will not be registered under the U.S. Investment Company Act of 1940, as amended (the “US Investment Company Act”) and Alaris is relying on the exemption from registration under t
Slide 5: Profile
Corporate Summary (Q4 2024) Invested Capital $1.480 billion Net Book Value $1.102 billion ($24.22 per unit) Quarterly Distribution $0.34 per unit ($1.36 annually) YTD Payout Ratio 48% Market Summary Ticker Symbol – Trust Units TSX: AD.UN Average Daily Volume (3-Month) 75,835 PROFILE Units Outstandin
Slide 6: Portfolio Overview
Portfolio Overview ~$1.6B 20 Partners in Current Invested Capital Current Portfolio $2.7B+ 19% Current Invested Capital and Median IRR from Managed Capital Exited Investments ALARIS OVERVIEW 43 65% Partners Invested in Fund Return from Since Inception Exited Investments(1) 50+ $267M Follow-On invest
Slide 7: Defining the Business
DEFINING THE BUSINESS Alaris’ long-term goal is to create an optimal income stream with long term growth for investors Alaris provides capital to private businesses using an innovative structure that fills a niche in the private capital markets Alaris delivers diversification, enhanced returns, inco
Slide 8: Access to Private Equity Market
ACCESS TO PRIVATE EQUITY MARKET Access exclusive investment opportunities traditionally reserved for institutional investors and high-net-worth individuals. Shrinking Public Market: In 1996, 8,000+ public companies; today, 50% fewer. Limited Public Access: Only 2% of middle-market Long-Term companie
Slide 9: Investment Highlights
INVESTMENT HIGHLIGHTS The best companies in the world are never for sale. Alaris’ unique investment structure generates attractive returns from a universe of businesses that would be otherwise unavailable to traditional equity investors Unique investment strategy combines equity like returns with 1
Slide 10: Alaris Represents a Unique Asset Class
ALARIS REPRESENTS A UNIQUE ASSET CLASS Alaris' structured equity investment approach provides a desirable risk:return profile Equity-Like Returns… Alaris Equity Partners - Lifetime IRR (Exited Investments - Currently Neutral) Attractive initial cash yields with participation in growth through an a
Slide 11: Alaris Is Your Alternatives Investment
ALARIS IS YOUR ALTERNATIVES INVESTMENT Alaris provides private equity returns for investment portfolios by providing benefits such as diversification, enhanced returns, income generation and liquidity Investors are increasingly allocating capital to alternative investments for several key reasons. A
Slide 12: Innovative Win-Win Investment Approach
INNOVATIVE WIN-WIN INVESTMENT APPROACH Proven brand & platform delivering a differentiated capital solution to established high growth middle market companies Why Alaris Wins Alaris’ Value Proposition to Founders / Operators #1 #2 #3 Non-Control No “Put” Option Shared Participation Founders mainta
Slide 13: Differentiated Strategy
DIFFERENTIATED STRATEGY Alaris’ preferred equity structure fills a large gap in the financial markets Traditional Private Equity Structured Preferred Equity Mezzanine Capital Stack Operating Control x Needs Control None None Time Horizon x 4 – 6 Years Long-Term × 3 – 5 Years Rollover Equity Gr
Slide 14: Evolution of Alaris
EVOLUTION OF ALARIS 2004: Alaris 2019: Extension of equity Equity 2011: Alaris investment strategy with first 2023: Launches AUM Partners was begins investing in common equity investments strategy raising founded in US-based in Amur and Ohana $400M of equity from Calgary, companies Brookfield for So
Slide 15: Assets Under Management
Historical AUM ($ millions) $707 $707 $544 $313 $337 $228 $147 $143 $42 $45 $1,165 $1,230 $1,282 $1,039 $1,105 $846 $835 ASSETS 2019 2020 2021 2022 2023 2024 2025 UNDER Preferred Equity Common Equity Managed Capital MANAGEMENT (AUM) To date, Alaris has dealt with two of the biggest asset management
Slide 16: Well-Defined Target Partner Profile
A DISCIPLINED APPROACH TO STRUCTURED EQUITY INVESTING: WELL-DEFINED TARGET PARTNER PROFILE Alaris has invested over $2.7 billion to date in 43 companies in the United States and Canada Target Capital Uses by % of Existing Partners Partner Criteria Alaris recapitalizes both minority and majority eq
Slide 17: Thoughtfully Constructed Diversified Portfolio
THOUGHTFULLY CONSTRUCTED DIVERSIFIED PORTFOLIO 10% Invested Capital by Country (as of Mar-25) ~90% United States of Fair Value of Investments in US-Based Canada Companies 90% Invested Capital by Industry Segment 14% (as of Mar-25) Business Services 37% Diversified Industrial 21% End-Market Concentra
Slide 18: Partner Revenue Summary
Annual Distribution Partner (CAD$millions) (1) % of total Body Contour Centers $ 19.6 10.4% DNT 16.3 8.7% The Shipyard 14.0 7.5% D&M 14.0 7.5% Accscient 12.9 6.9% Ohana Growth Partners (2) 12.6 6.7% GWM Holdings 11.3 6.0% 3E 8.4 4.5% Amur Financial 7.5 4.0% LMS (3) 7.3 3.9% PEC 7.3 3.9% FMP 7.4 3.9%
Slide 19: Earnings Coverage Heat Map
EARNINGS COVERAGE HEAT MAP The table to the right displays the range of Partner Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 earnings coverage ratios (“ECR”) for each of our Body Contour Centers 1.2x-1.5x 1.2x-1.5x 1.2x-1.5x 1.2x-1.5x 1.2x-1.5x Partners over the last five quarters. Generally Ohana 1.2x-1.5x 1.0x
Slide 20: Returns from Exits to Date
RETURNS FROM EXITS TO DATE Initial Number of Investment Years Capital Distributions Exit Capital Total % total $millions CAD Date Invested Invested Received Received Return Return IRR % Alaris has generated $673.3 million MAHC (1) Dec-15 1.0 $ (18.4) $ 7.2 $ 20.0 $ 8.8 48% 53% in total returns (+6
Slide 21: Investment History
INVESTMENT HISTORY Capital Invested ($ millions) $400 $350 $300 $99 $250 $197 $187 $200 $26 $150 $116 $260 $104 $100 $122 $97 $159 $130 $118 $50 $78 $67 $32 $41 $- 2018 2019 2020 2021 2022 2023 2024 2025 New Investments Follow-on Investments Rreinvestment Since Inception: -Invested over $2.7 billi
Slide 22: Historic Financial Summary
Millions (CAD $) 2020A 2021A 2022A 2023A 2024A Partner Revenue $109.5 $147.7 $190.0 $162.6 $194.1 % Change -5% 35% 29% -14% Net Cash from Ops $71.9 $104.2 $154.4 $83.0 $130.4 % Change -4% 45% 46% -39% Distributions $48.6 $57.7 $60.2 $61.9 $61.9 % Change -20% 19% 4% 3% HISTORIC Payout Ratio 68% 53% 3
Slide 23: Balance Sheet
Summary of Dept Capacity and Covenants Proforma Millions CAD$ March 10, 2025 Senior debt outstanding $407.0 (1) Senior debt to EBITDA 1.80x Senior debt to EBITDA Covenant 3.0x Available Debt Capacity $93.0 Debentures Outstanding $65.0 (2) BALANCE Current Fixed Charge Ratio 1.79x (1) SHEET Fixed Char
Slide 24: Recent Financial Results
RECENT FINANCIAL RESULTS (1) Three months ended December 31, 2024 vs Year ended December 31, 2024 vs same same period 2023: period 2023: 12.1% increase in Partner revenue to $46.9 million 19.0% increase in Partner revenue to $194.2 34.6% decrease in Adjusted EBITDA (2) to $41.4 million 4.7%
Slide 25: Corporate Information
CORPORATE INFORMATION Board of Trustees Committees Auditors KPMG, LLP Peter Grosskopf, Chairman Banking National Bank of Canada (lead) Syndicate Bank of Montreal (co-lead) ATB Financial (co-lead) Mitch Shier, Trustee - Corporate Governance Royal Bank of Canada (Chair) Desjardins Group Canadian Weste
Slide 26: Appendices
APPENDICES 26
Slide 27: Appendix A: Summary of Partners
APPENDIX A: SUMMARY OF PARTNERS (IN US$ UNLESS NOTED) Millions ($) 3E Accscient LLC Amur Financial Body Contour Berg Demo Carey Electric Cresa Group Centers (DBA Holdings Sono Bello) ² Industry Industrials: Business Services: Financial Services: Consumer Industrials: Industrials: Business Utility Se
Slide 28: Appendix A: Summary of Partners
APPENDIX A: SUMMARY OF PARTNERS (IN US$ UNLESS NOTED) Millions ($) DNT Edgewater Federal Fleet Advantage GWM Heritage LMS Construction Technical Management Restoration Associates Partners Industry Industrials: Civil Business Services: Business Services: Business Services: Business Services: Industri
Slide 29: Appendix A: Summary of Partners
APPENDIX A: SUMMARY OF PARTNERS (IN US$ UNLESS NOTED) Millions ($) Ohana Growth Professional Sagamore SCR The Shipyard D&M Leasing Partners (formerly Electric Contractors PF Growth of Connecticut Partners) Industry Consumer Industrials: Industrials: Industrials: Business Services: Financial Services
Slide 30: Thank You
Head Office: THANK Suite 250, 333 24th Avenue SW Calgary, Alberta T2S 3E6 YOU Phone: 403.228.0873 Fax: 403.228.0906 Website: www.alarisequitypartners.com 30
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