Alaris Announces a $115.5 Million Investment into a New Partner
Executive Summary
- Alaris Equity Partners completed a $115.5 million investment in Optimus SBR Inc. and its limited partnership.
- The investment consists of $85.0 million of preferred equity (providing an initial annualized distribution of $11.1 million, 13% pre‑tax yield) and $30.5 million of common equity.
- Proceeds will be used for partial liquidity to existing equity holders, and the deal brings Alaris’s year‑to‑date deployed capital to approximately $343.5 million.
Key Details
- Investment Structure:
- Preferred equity: $85.0 M, annualized distribution $11.1 M, pre‑tax yield 13%, distribution adjusts with Optimus SBR revenue (collar ±8%).
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Common equity: $30.5 M.
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Use of Proceeds: Partial liquidity to existing equity holders of Optimus SBR.
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Financial Metrics of Optimus SBR:
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Earnings coverage ratio between 1.2x‑1.5x based on trailing twelve‑month results and capital structure adjustments.
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Alaris Capital Deployment: With this closing, total deployed capital YTD is ~$343.5 M.
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Strategic Rationale (CEO Comments):
- Kevin Gauci (Optimus SBR) highlighted the partnership will “unlock full potential” and accelerate growth in AI, digital transformation, and regulatory services.
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Steve King (Alaris) noted Optimus is a highly sought‑after asset and aligns with Alaris’s focus on stable cash flows and long‑term value creation.
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Distribution Mechanics: Preferred equity distribution tied to Optimus SBR annual revenue changes, subject to an ±8% collar.
Notable Quotes
“We’re delighted to welcome Alaris to the broader Optimus SBR team,” – Kevin Gauci, CEO & Co‑Founder, Optimus SBR.
“As the largest independent management consulting company in Canada, this asset was highly sought after by private equity firms across North America,” – Steve King, President & CEO, Alaris Equity Partners.