Alaris forms “partnerships” with private companies whose owners want to maintain control of their business (day-to-day operations, corporate culture, and long term objectives), without the added risk of high leverage. We participate in the business of our Private Company Partners through non-control equity ownership.
How is Non-Control Equity Possible?
Non-control equity is possible when an equity partner does not rely on a future exit to generate their returns; and, additionally, if those returns are not directly tied to the company’s bottom line results.
Alaris’ unique investment structure calls for returns in the form of equity dividend distributions (a “distribution”) that are reset based on a company’s top line results. This allows us to partner with the best management teams in their respective industries and provide true long term financing without refinancing risk; while allowing entrepreneurs the opportunity to maintain control and long term objectives.
Use of Proceeds
The Alaris structure is designed for entrepreneurs who wish to raise capital for partial liquidity, generational transfer, recapitalization, management buyout, or for growth.
Alaris provides cash financing to Partners at an agreed upon valuation, in exchange for a predetermined distribution. Our distribution is:
- Received monthly.
- Determined 12 months in advance.
- Based on a mutually agreed upon top-line, audited performance metric such as gross revenues or same store sales.
- Annually adjusted based on the percentage change in the audited performance metric.
- Typically restricted by a collar that allows entrepreneurs to retain the majority of future growth.
- Limited to organic growth.
- Made before applicable taxes to provide structural efficiency.