Business Owners seeking to monetize a significant portion of the equity built up in their business today but also want to remain in control of their business, continue to dictate time horizon, while being the largest participant in the future growth of their business have used Alaris to facilitate these ambitions.
LMS Reinforcing Steel Group
Planet Fitness Growth Partners (PFGP)
US$40.0M (2 tranches)
Leading franchisee of Planet Fitness® health clubs.
PFGP was looking for capital to expand their business, and to provide a partial liquidity event for certain equity holders.
PFGP has been able to increase the number of clubs from 15 to over 50 today, and continues to grow. This has increased the economic interests of PFGP equity holders substantially.
Alaris' business model was exactly what we were looking for in an investor. We wanted capital to help us grow our business while still maintaining control. Alaris is allowing us to do that."
– Victor Brick, CEO, Planet Fitness
Leading provider of design, engineering, development, manufacturing, and sourcing services for international apparel companies and retailers.
Providence was exploring options to identify a partner that had the ability to grow alongside them with additional capital to help fund growth while at the same time, providinga liquidity event for certain equity holders.
Maintaining the culture and having the ability to control the operational and strategic vision of the business were of utmost importance to the founders.
Alaris made a non-control preferred equity investment which allowed the founders to achieve their goals today as well as align themselves with a capital provider who does not have a time horizon on their capital and can provide continued access to capital.
Management continues to execute their business plan as they see fit, preserve the culture that they had worked hard to establish and benefit from the majority of the growth that they create as operators since Alaris’ participation in the growth of the business is capped via a collar.
$42.5 (2 tranches)
Leading designer and manufacturer of wooden outdoor active play and modular structures.
The Solowave team had spent years building a high quality business in a very niche sector of the wooden outdoor play space.
The founders were seeking a partner that could facilitate a liquidity event for certain equity holders and execute on their growth strategy, and also allow management to maintain control over operations. Maintaining the culture that they had established was a key to the owners.
Alaris’ original investment provided a dividend recap for the common equity holders of the business and was followed by a subsequent second tranche of Alaris capital to help fund a new division of the business.
In September of 2016 the common equity holders sold the business which saw Alaris sell its preferred equity units along side the common equity holders. Due to the collar on the growth participation of Alaris’ distribution, the common equity holders were able to experience a much more beneficial portion of the sale proceeds then they would have if they had sold their common equity in the original liquidity transaction 5 years prior.