Investor Presentaiton
Debt-Like Protections
Equity-Like Returns
ALARIS REPRESENTS A UNIQUE ASSET CLASS
..
Attractive initial cash yields with participation in
growth through an annual adjustment
Adjustment tied to top-line growth in the underlying
business
Exposure to market-leading businesses that are not
otherwise accessible to traditional equity investors
In the event its investment is repurchased, Alaris is
entitled to receive a premium in addition to the
return of its original invested capital
Comprehensive set of rights and remedies
Consent rights over material changes in the
underlying business of the Partner Companies
Non-payment of distributions constitutes an event of
default
Uncured remedies include the ability to assume a
more active role in management, and if necessary,
take voting control
Ultimately, Alaris can require the repurchase of its
investment or engage in a controlled sales process
ALARIS
EQUINS COST
25%
Initial Stated Distribution
Yield(1)
Growth(2)
Redemption Pre-Remediation. Remediated
Premium(3)
IRR Investments(4)
Gross Realized
IRR
4.3%
21.9%
20%
2.1%
15.5%
15%
10%
5%
0%
(1) Reflects weighted average initial yield of realized investments
(5.1%)
15.8%
(2) Reflects IRR with impact of distribution adjustments and debt contributions (excludes Group SM, KMH and SHS)
(3) Reflects incremental IRR achieved from redemption premiums (excludes Group SM, KMH and SHS)
(4) Reflects impact on IRR from remediated investments (includes Group SM, KMH and SHS)
BENEFITS TO UNITHOLDERS
Five Pillars to the Optimal Income Stream
Low Volatility
of Cash Flows
Alaris' preferred
distributions are:
based on top-line
performance and
paid in priority to
other equity
✓ covered by a
cash-flow buffer
and protective
covenants
✓ paid monthly
providing monthly
cash returns vS
returns on an exit
✓ volatility reducing
collars on >90% of
current
distributions
Visibility
of Cash Flows
Alaris adjusts its
distributions from
Partner's annually
and for 12 months
Financial health of
Partners is
monitored closely
each month
✓ The Trust has
relatively low
SG&A expenses
relative to
profitability which
has proven the
scalability of the
model
Diversification
of Revenue Streams
Currently have 17
Partners
Long-term goal is
to have no single
revenue stream
>10% of total
revenue
Liquidity
For Unitholders
✓ Average daily
trading volumes
provide adequate
liquidity for
unitholders
Growth
in Cash Flow Per Unit
✓ Historic organic
growth in Partner
revenues of 1% to
6% per year
Add to cash flow
per unit through
accretive capital
deployments
ALARIS
EQUITY PARTNERS COME TRUST
10
5
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