Alaris Announces New Investments And a 9% Distribution Increase
NOT FOR DISTRIBUTION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW
CALGARY, Alberta, Oct. 21, 2025 (GLOBE NEWSWIRE) — (all numbers in this release are in Canadian dollars (CDN$) unless otherwise noted)
Alaris Equity Partners (“Alaris” or the “Trust”) is pleased to announce that it has recently completed three investments totaling US$52.7 million, contributing an incremental US$6.6 million or 4.3% growth to Alaris’ run rate partner distributions. The investments include a US$27.0 million initial investment in McCoy Roofing Holdings LLC (“McCoy”), a leading provider of residential roofing services based in Omaha, Nebraska, as well as follow-on investments into existing partners, including Cresa LLC (“Cresa”) and Carey Electric Contracting Inc. (“Carey”) In addition, Alaris’ long-standing partner, Ohana Growth Partners LLC (“Ohana”), completed the acquisition of a Planet Fitness franchisee based in Michigan and Wisconsin with ten locations.
On the back of the new investments announced today, strength within our existing partner base and lower than target payout ratio, Alaris is pleased to announce that its Board of Trustees has approved a 9% increase to the distribution, while the payout ratio remains below our 65% – 70% target. This increase brings the quarterly distribution to $0.37 per trust unit and the annual distribution to $1.48.
“We are excited to welcome McCoy to our growing portfolio and honoured to be able to support the growth of our existing partners Cresa, Carey and Ohana,” commented Steve King, President and CEO of Alaris. “Since our founding in 2004, we have invested in 43 portfolio companies, providing our partners with over $2.9 billion in capital, generating a 16% IRR from exited investments and returning over $800 million to unitholders though distributions and unit buy backs. The significant success that we have seen over the past 21 years has set us up to capitalize on continued growth within our segment of the $3 trillion North American private equity market,” continued Mr. King.
“In addition, with today’s announcement we continue to grow our common equity portfolio, enabling the Trust to provide the opportunity for enhanced returns to our unitholders. With the addition of McCoy, we now have common equity holdings in 15 of our partners and are excited that Alaris and our unitholders are now positioned to more fully participate in the significant value creation that our partners are building within their businesses,” added Mr. King.
“As we look forward, we remain confident in our ability to continue our strong growth track record, as our pipeline of new investment opportunities remains strong, and the potential for continued distribution increases from our partners remains positive. As a result of the strength across our business, coupled with our payout ratio being below our target range, I am pleased to announce that we are increasing our distribution. As we go forward, we will look to continue using our capital to fund our growth while returning excess cash to unitholders through potential future distribution increases and buybacks,” concluded Mr. King.
McCoy Roofing
Founded in 2007 and headquartered in Omaha, Nebraska, McCoy Roofing is a leading provider of roofing and storm restoration services across the Midwest. While McCoy’s services are primarily centered on residential insurance restoration projects resulting from severe weather, the company also brings extensive expertise in roofing, gutters, siding, windows and doors. Unlike other segments of residential contracting, residential insurance restoration is driven by weather patterns that routinely cause property damage requiring non-discretionary and time-sensitive demand for replacement services. With a strong reputation for quality and customer service, McCoy has expended into multiple regional markets, including Omaha, Lincoln, Des Moines, Sioux Falls, and beyond.
Alaris’ investment, through Alaris USA, consists of US$19.0 million of preferred equity and US$8 million in common equity. The preferred equity investment provides Alaris with an initial annualized distribution of $2.7 million, translating into a pre-tax annualized yield of 14%. The distribution is set to be adjusted annually based on the percent change in McCoy’s annual net revenue, subject to a collar of 7%.
If McCoy successfully achieves its growth and profitability targets, Alaris has agreed to fund up to an additional US$32.0 million of preferred equity over two tranches, with the same initial annualized yield and rights. Proceeds of the McCoy Investment were used to provide a partial liquidity event to equity holders.
“We chose Alaris because of their proven track record of success and their unique approach that allows us to retain majority ownership while gaining a true partner to help us scale and grow—without compromising our culture. Their integrity and values align perfectly with ours, and we couldn’t be more excited about the future with Alaris as our partners,” said Landon Wrinkle and Lee McCoy, Co-Owners, McCoy Roofing.
Follow-On Investments – Cresa and Carey
Alaris is excited to announce that it has invested an additional US$20.5 million in Cresa, bringing the Trust’s total investment to US$50.5 million. The most recent investment will result in a 69% increase in Cresa’s annualized distribution, up to US$7.1 million from US$4.2 million effective. The proceeds from this investment will be used to fund a strategic acquisition that provides the Company with a strong recurring revenue portfolio, proprietary technology platform and scale as a leading tenant only focused real estate advisory firm.
In addition, Alaris has invested an additional US$5.2 million in Carey with proceeds used to provide liquidity to a shareholder of the business. Following this investment the Trust’s preferred equity investment has increased to US$14.5 million while the common equity investment has increased to US$4.7 million. Alongside this investment, Carey’s annualized distribution has increased by 16% to US$2.2 million from US$1.9 million.
Corporate Partner Update –
Across our portfolio, performance reflects a balanced mix of growth and resilience, with several notable developments. Alaris’ long-time partner, Ohana recently completed the acquisition of a Planet Fitness franchisee operating 10 Planet Fitness clubs in Michigan and Wisconsin. The acquisition strengthens Ohana’s competitive position and cash flow and provides it access into two new markets, positioning Ohana well for continued growth. Alaris supported the Ohana management team with the successful completion of the acquisition, however it was fully financed through Ohana’s balance sheet. On the back of Ohana’s expansion into Michigan and Wisconsin, this acquisition is expected to significantly enhance the return profile of Alaris’ common equity ownership in Ohana over the course of the Trust’s investment period. The acquisition brings Ohana’s total club count to 94 with clubs in Maryland, Washington, Tennessee, Floria, DC, California, Michigan and Wisconsin.
In addition, Edgewater Technical Associates, LLC secured a significant multi-year government contract which is expected to accelerate its already impressive revenue growth rate, further enhancing visibility and supporting long-term value creation. Fleet Advantage, LLC was recently awarded a number of new contracts awarded, including a new customer relationship that further diversifies its revenue base and strengthens future cash flow potential. GWM Holdings Inc. continues to face headwinds as larger customers moderate spending and sector-wide pressures persist. These conditions are placing pressure on profitability and cash flows, and management is focused on revenue capture, pipeline conversion and cost discipline to stabilize performance. Meanwhile, Federal Management Partners, LLC remains on track with its recovery plan, though progress has been temporarily impacted by the current government shutdown.
Overall, Alaris’ diversified portfolio remains well-positioned for continued growth and value creation, supported by strong partner execution, expanding customer relationships, and a resilient foundation for long-term returns.
ABOUT ALARIS:
The Trust, through its subsidiaries, invests in a growing and diversified group of private businesses (“Private Company Partners”) primarily through structured equity. Our strategy is designed to deliver stable and predictable returns to unitholders while driving long-term value creation. In addition to generating steady cash distributions, we aim to capture capital appreciation as our partners expand. This growth-focused approach is further enhanced by common equity positions, which align our interests with those of the founders and allow us to participate in the upside of their continued success.
FORWARD LOOKING STATEMENTS
This news release contains forward-looking information, including within the meaning of “safe harbour” provisions under applicable securities laws (“forward-looking statements”). Statements other than statements of historical fact contained in this news release may be forward-looking statements, including, without limitation, management’s expectations, intentions and beliefs concerning: the McCoy Investment, Cresa follow-on investment, Ohana acquisition and the Carey follow-on investment thereon. Many of these statements can be identified by words such as “believe”, “expects”, “will”, “intends”, “projects”, “anticipates”, “estimates”, “continues” or similar words or the negative thereof. Forward looking statements in this news release include, without limitation, statements regarding: the annualized distributions for the McCoy Investment, Cresa follow-on investment and the Carey follow-on investment; the earnings coverage ratios for the McCoy investment, Cresa follow-on investment and the Carey follow-on investment; and Alaris’ outstanding indebtedness and use of the balance of the Facility. Any forward-looking statements which constitute a financial outlook or future-oriented financial information (including the impact on revenues, net cash from operating activities and Run Rate Payout Ratio) were approved by management as of the date hereof and have been included to explain Alaris’ financial performance and are subject to the same risks and assumptions disclosed above. There can be no assurance that the plans, intentions or expectations on which these forward-looking statements are based will occur.
By their nature, forward-looking statements require Alaris to make assumptions and are subject to inherent risks and uncertainties. Assumptions about the performance of the Canadian and U.S. economies over the next 24 months and how that will affect Alaris’ business and that of its Partners (including, without limitation, the impact of any global health crisis, like COVID-19, and global economic and political factors) are material factors considered by Alaris management when setting the outlook for Alaris. Key assumptions include, but are not limited to, assumptions that: the Russia/Ukraine conflict, conflicts in the Middle East, and other global economic pressures over the next twelve months will not materially impact Alaris, its Partners or the global economy; interest rates will not rise in a matter materially different from the prevailing market expectation over the next 12 months; global heath crises, like COVID-19 or variants thereof, will not impact the economy or our Partners operations in a material way in the next 12 months; the businesses of the majority of our Partners will continue to grow; more private companies will require access to alternative sources of capital; the businesses of new Partners and those of existing Partners will perform in line with Alaris’ expectations and diligence; and that Alaris will have the ability to raise required equity and/or debt financing on acceptable terms. Management of Alaris has also assumed that the Canadian and U.S. dollar trading pair will remain in a range of approximately plus or minus 15% of the current rate over the next 6 months. In determining expectations for economic growth, management of Alaris primarily considers historical economic data provided by the Canadian and U.S. governments and their agencies as well as prevailing economic conditions at the time of such determinations.
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 assurances of future performance. The actual results of the Trust and the Partners could materially differ from those anticipated in the forward-looking statements contained herein as a result of certain risk factors, including, but not limited to, the following: impact of widespread health crises is, like COVID-19 (or its variants), other global economic factors (including, without limitation, the Russia/Ukraine conflict, conflicts in the Middle East, inflationary measures and global supply chain disruptions on the global economy, tariffs and internal trade disputes on the Trust and the Partners (including how many Partners will experience a slowdown of their business and the length of time of such slowdown)); the dependence of Alaris on the Partners, including any new investment structures; leverage and restrictive covenants under credit facilities; reliance on key personnel; failure to complete or realize the anticipated benefit of Alaris’ financing arrangements with the Partners; a failure to obtain required regulatory approvals on a timely basis or at all; changes in legislation and regulations and the interpretations thereof; risks relating to the Partners and their businesses, including, without limitation, a material change in the operations of a Partner or the industries they operate in; inability to close additional Partner contributions or collect proceeds from any redemptions in a timely fashion on anticipated terms, or at all; a failure to settle outstanding litigation on expected terms, or at all; a change in the ability of the Partners to continue to pay Alaris at expected Distribution levels or restart distributions (in full or in part); a failure to collect material deferred Distributions; a change in the unaudited information provided to the Trust; a negative impact on the Trust or Partners with risk to cybersecurity and or implementation of artificial intelligence; and a failure to realize the benefits of any concessions or relief measures provided by Alaris to any Partner or to successfully execute an exit strategy for a Partner where desired. Additional risks that may cause actual results to vary from those indicated are discussed under the heading “Risk Factors” and “Forward Looking Statements” in Alaris’ Management Discussion and Analysis and Annual Information Form for the year ended December 31, 2024, which is or will be (in the case of the AIF) filed under Alaris’ profile at www.sedarplus.ca and on its website at www.alarisequitypartners.com.
This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about increases to the Trust’s net operating cash per flow per unit and liquidity, each of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on FOFI and forward-looking statements. Alaris’ actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and FOFI, or if any of them do so, what benefits the Trust will derive therefrom. The Trust has included the forward-looking statements and FOFI in order to provide readers with a more complete perspective on Alaris’ future operations and such information may not be appropriate for other purposes. Alaris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Readers are cautioned that the assumptions used in the preparation of forward-looking statements, including FOFI, although considered reasonable at the time of preparation, based on information in Alaris’ possession as of the date hereof, may prove to be imprecise. In addition, there are a number of factors that could cause Alaris’ actual results, performance or achievement to differ materially from those expressed in, or implied by, forward looking statements and FOFI, or if any of them do so occur, what benefits the Trust will derive therefrom. As such, undue reliance should not be placed on any forward-looking statements, including FOFI.
The Trust has included the forward-looking statements and FOFI in order to provide readers with a more complete perspective on Alaris’ future operations and such information may not be appropriate for other purposes. The forward-looking statements, including FOFI, contained herein are expressly qualified in their entirety by this cautionary statement. Alaris disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
For further information please contact:
ir@alarisequity.com
P: (403) 260-1457
Alaris Equity Partners Income Trust
Suite 250, 333 24th Avenue S.W.
Calgary, Alberta T2S 3E6
www.alarisequitypartners.com
