Alaris Vs Junior Capital Providers

Alaris’ perpetual preferred equity competes in the Junior Capital space with Mezzanine Debt and Private Equity.

Capital Stack
Rollover Equity
2nd Layer Junior Capital
1st Layer Senior Debt
     
  Alaris Private Equity Mezzanine
Operating Control ✔ None ✘ Needs control ✔ None
Time Horizon ✔ Indefinite ✘ 4-6 years ✘ 3-5 years
Growth Participation ✔ Capped ✘ Full carry ✔ Minimal
Future Funding ✔ Unlimited ✘ Maxes out ✘ Maxes out
Target Returns ✔ 13% - 16% ✘ +20% ✔ 9% - 15%
Dilution ✔ Preferred ✘ Common Equity ✘ Warrants

Alaris has positioned itself to give entrepreneurs what they want in regards to:

  • Having control of the operations and culture of their business
  • Ability to dictate the time horizon of their junior capital provider
  • Majority of the participation in the growth they create
  • Access to funding for follow on transactions
  • Competitive targeted returns