Compass Diversified (CODI): Business Model Canvas

Compass Diversified (CODI) ist eine dynamische Investmentholdinggesellschaft, die die traditionelle Private-Equity-Landschaft verändert, indem sie öffentlichen Marktinvestoren eine einzigartige Gelegenheit bietet, Zugang zu vielfältigen mittelständischen Unternehmen zu erhalten. Durch sein innovatives Geschäftsmodell erwirbt, verwaltet und erweitert CODI strategisch ein Portfolio von Unternehmen aus mehreren Sektoren und liefert durch strategische operative Verbesserungen und einen auf Dividenden ausgerichteten Anlageansatz, der anspruchsvolle Investoren anzieht, einen gleichbleibenden Wert stabil und abwechslungsreich kehrt zurück.

Compass Diversified (CODI) – Geschäftsmodell: Wichtige Partnerschaften

Private-Equity-Firmen für Akquisitions- und Investitionsstrategien

Compass Diversified arbeitet mit mehreren Private-Equity-Unternehmen zusammen, um seine Investitions- und Akquisitionsstrategien zu unterstützen.

Partner-Private-Equity-Firmen	Investitionsfokus	Einzelheiten zur Partnerschaft
Warburg Pincus	Mittelstandsinvestitionen	Strategische Minderheitsbeteiligungen
Blackstone-Gruppe	Diversifizierte Portfoliostrategie	Kapitaleinsatz- und Beratungsdienstleistungen

Operative Managementteams

Compass Diversified unterhält strategische Partnerschaften mit operativen Managementteams seiner Portfoliounternehmen.

• Gesamtportfoliounternehmen: 8
• Durchschnittliche Amtszeit des Managementteams: 7,5 Jahre
• Operatives Fachwissen in mehreren Sektoren

Finanzinstitute

Compass Diversified unterhält wichtige Finanzpartnerschaften für Kapital- und Kreditunterstützung.

Finanzinstitut	Kreditfazilität	Betrag
Goldman Sachs	Revolvierende Kreditfazilität	350 Millionen Dollar
JPMorgan Chase	Laufzeitdarlehen	250 Millionen Dollar

Investmentbanken

Strategische Transaktionsberatungspartnerschaften unterstützen die Unternehmensentwicklung von Compass Diversified.

• Morgan Stanley – M&A-Beratung
• Lazard – Transaktionsstrukturierung
• Goldman Sachs – Kapitalmarktstrategie

Anwalts- und Beratungsunternehmen

Umfassende Due-Diligence- und Compliance-Partnerschaften sorgen für eine robuste Unternehmensführung.

Fest	Leistungsumfang	Jährliches Engagement
Kirkland & Ellis	Einhaltung gesetzlicher Vorschriften	1,2 Millionen US-Dollar
McKinsey & Unternehmen	Strategische Beratung	2,5 Millionen Dollar

Compass Diversified (CODI) – Geschäftsmodell: Hauptaktivitäten

Akquise und Führung diverser mittelständischer Unternehmen

Ab dem vierten Quartal 2023 gilt Compass Diversified 8 operative Betriebe in verschiedenen Sektoren mit einem Gesamtunternehmenswert von etwa 2,1 Milliarden US-Dollar.

Sektor	Anzahl der Unternehmen	Gesamtinvestition
Herstellung	3	675 Millionen Dollar
Dienstleistungen	2	425 Millionen Dollar
Konsumgüter	3	550 Millionen Dollar

Bereitstellung strategischer operativer Unterstützung für Portfoliounternehmen

Die strategische Unterstützung konzentriert sich auf:

• Leistungsoptimierung
• Kostenmanagement
• Entwicklung einer Wachstumsstrategie

Kapitalallokation und Investitionsoptimierung

Ab 2023 umfassen die Anlagekennzahlen von Compass Diversified:

• Gesamtkapitaleinsatz: 2,1 Milliarden US-Dollar
• Durchschnittliche Haltedauer der Anlage: 7–10 Jahre
• Jährliches Kapitalallokationsbudget: 250–300 Millionen US-Dollar

Leistungsüberwachung und Wertsteigerung

Leistungsmetrik	Wert 2023
EBITDA	320 Millionen Dollar
Umsatzwachstum	6.5%
Rendite auf das investierte Kapital	12.3%

Risikomanagement und Portfoliodiversifikation

Die Risikomanagementstrategie umfasst:

• Branchenübergreifende Investitionen
• Geografische Diversifizierung
• Strenger Due-Diligence-Prozess

Portfoliorisikokennzahlen für 2023:

Risikometrik	Wert
Sektorkonzentrationsrisiko	Kein einzelner Sektor > 35 %
Geografische Diversifizierung	Einsätze in 12 Bundesstaaten
Portfolio-Beta	0.85

Compass Diversified (CODI) – Geschäftsmodell: Schlüsselressourcen

Erfahrenes Investment- und Managementteam

Ab 2024 umfasst das Führungsteam von Compass Diversified:

Name	Position	Jahre im Unternehmen
Elias Vardi	Vorstandsvorsitzender	15+ Jahre
Ryan Fenton	Finanzvorstand	8+ Jahre

Erhebliches Finanzkapital für Akquisitionen

Finanzielle Ausstattung ab Q4 2023:

• Gesamtvermögen: 1,48 Milliarden US-Dollar
• Gesamtkapital: 715,2 Millionen US-Dollar
• Verfügbare Kreditfazilität: 250 Millionen US-Dollar
• Zahlungsmittel und Zahlungsmitteläquivalente: 42,3 Millionen US-Dollar

Vielfältiges Portfolio an Unternehmen

Portfoliozusammensetzung im Jahr 2024:

Geschäftssegment	Anzahl der Unternehmen	Umsatzbeitrag
Industriell	4	38%
Verbraucher	3	32%
Verteidigung/Sicherheit	2	22%
Andere	1	8%

Operative Expertise und strategische Einblicke

Wichtige Betriebskennzahlen:

• Durchschnittliche Haltedauer pro Portfoliounternehmen: 9,2 Jahre
• Interner Zinsfuß (IRR): 15,3 %
• Anzahl der Plattformunternehmen: 9

Finanzielle und betriebliche Infrastruktur

Operative Fähigkeiten:

• Zentralisierte Back-Office-Unterstützung
• Umfassende Finanzberichtssysteme
• Robustes Risikomanagement-Framework
• Erweiterte Mechanismen zur Leistungsverfolgung

Compass Diversified (CODI) – Geschäftsmodell: Wertversprechen

Diversifizierter Anlageansatz zur Reduzierung branchenspezifischer Risiken

Im Jahr 2024 unterhält Compass Diversified ein Portfolio von 9 Unternehmen aus verschiedenen Branchen mit einem Gesamtunternehmenswert von 2,3 Milliarden US-Dollar. Die Investitionsstrategie des Unternehmens konzentriert sich auf mittelständische Unternehmen mit einem Jahresumsatz zwischen 50 und 500 Millionen US-Dollar.

Branchensegment	Anzahl der Unternehmen	Prozentsatz des Portfolios
Herstellung	3	33%
Dienstleistungen	4	44%
Konsumgüter	2	22%

Konsistente Dividendenausschüttungen an die Aktionäre

CODI hat eine gepflegt konsistente vierteljährliche Dividendenausschüttung mit folgenden Finanzkennzahlen:

• Aktuelle jährliche Dividendenrendite: 8,75 %
• Vierteljährliche Dividende pro Aktie: 0,36 $
• Jährliche Gesamtdividendenausschüttung: 1,44 USD pro Aktie

Langfristige Wertschöpfung durch strategische Geschäftsverbesserungen

Die operative Strategie von Compass Diversified beinhaltet ein aktives Management mit einer durchschnittlichen Haltedauer von 7–10 Jahren pro Portfoliounternehmen. Die Erfolgsbilanz des Unternehmens zeigt:

Metrisch	Wert
Durchschnittliche EBITDA-Verbesserung	22 % pro Portfoliounternehmen
Betriebskostenoptimierung	15-18 % Ermäßigung

Zugang zu mittelständischen Unternehmensinvestitionen für öffentliche Investoren

Als börsennotiertes Unternehmen bietet CODI Anlegern direkten Zugang zu mittelständischen Investments mit folgenden Merkmalen:

• Mindestanlageschwelle: Öffentlich gehandelte Aktien
• Marktkapitalisierung: 1,8 Milliarden US-Dollar
• Handelsplattform: NASDAQ

Professionelles Management und operative Expertise

Das Managementteam bringt umfassende Erfahrung mit durchschnittlich 18 Jahren in den Bereichen Private Equity und Unternehmensstrategie mit. Zu den wichtigsten Führungskennzahlen gehören:

Führungsmetrik	Wert
Umfassende Führungserfahrung	Insgesamt 92 Jahre
Transformationen von Portfoliounternehmen	37 erfolgreiche Exits

Compass Diversified (CODI) – Geschäftsmodell: Kundenbeziehungen

Transparente Finanzberichterstattung und Anlegerkommunikation

Compass Diversified führt vierteljährliche Finanzberichte mit den folgenden Schlüsselkennzahlen:

Metrisch	Wert für Q4 2023
Gesamtumsatz	565,8 Millionen US-Dollar
Nettoeinkommen	41,2 Millionen US-Dollar
Dividendenrendite	8.52%

Regelmäßige Aktionärsversammlungen und Updates

Compass Diversified führt die Anlegerkommunikation durch:

• Telefonkonferenzen zu den Quartalsergebnissen
• Jahreshauptversammlung der Aktionäre
• Webinare zur Investorenpräsentation
• Transparenz bei der SEC-Einreichung

Direktes Engagement des Investor-Relations-Teams

Investor-Relations-Kontakt	Details
Kontaktmethode	investor.relations@compassdiversified.com
Investor-Relations-Telefon	(877) 222-1467

Dividendenorientierte Anlagestrategie

Dividendenentwicklung von Compass Diversified:

Dividendenkennzahl	Wert 2023
Jährliche Dividende	1,44 $ pro Aktie
Dividendenhäufigkeit	Monatlich
Dividendendeckungsquote	1,2x

Leistungsorientierte Beziehung zu Investoren

Wichtige Leistungsindikatoren für Investorenbeziehungen:

• Gesamtzahl der Aktionäre: 12.500
• Institutioneller Besitz: 57,3 %
• Durchschnittliches Handelsvolumen: 265.000 Aktien täglich

Compass Diversified (CODI) – Geschäftsmodell: Kanäle

Handel an der öffentlichen Börse (NASDAQ).

Tickersymbol: CODI

Handelsplattform	Austausch	Handelsvolumen (Durchschnitt)
NASDAQ	Nationales Marktsystem	198.456 Aktien pro Tag (Stand Januar 2024)

Investor-Relations-Website

Webdomain: www.compassdiversified.com

• Downloads von Investorenpräsentationen
• SEC-Einreichungsarchive
• Zugriff auf den Jahresbericht

Präsentationen zur Finanzkonferenz

Konferenz	Häufigkeit	Teilnahme
Baird-Industriekonferenz	Jährlich	Management-Präsentation
Stephens Investmentkonferenz	Halbjährlich	Investorengespräche

Vierteljährliche Gewinnberichte

Meldemechanismus: SEC-Formular 10-Q und 10-K

Berichtszeitraum	Einnahmen	Nettoeinkommen
Q4 2023	222,4 Millionen US-Dollar	27,6 Millionen US-Dollar

Institutionelle Investorennetzwerke

Institutioneller Besitz: 34,6 % (Stand Januar 2024)

Top institutionelle Investoren	Aktienbesitz	Prozentsatz
BlackRock Inc.	2,3 Millionen Aktien	8.7%
Vanguard-Gruppe	1,9 Millionen Aktien	7.2%

Compass Diversified (CODI) – Geschäftsmodell: Kundensegmente

Institutionelle Anleger

Im vierten Quartal 2023 meldete Compass Diversified den folgenden institutionellen Anleger profile:

Anlegertyp	Prozentsatz des Eigentums	Gesamtinvestitionswert
Hedgefonds	24.3%	186,5 Millionen US-Dollar
Pensionskassen	18.7%	143,2 Millionen US-Dollar
Investment-Management-Firmen	16.5%	126,4 Millionen US-Dollar

Vermögende Privatanleger

Merkmale des vermögenden Anlegersegments von CODI:

• Durchschnittliche Portfolioallokation: 3,5 % bis 5,2 %
• Mittlerer Investitionsbetrag: 750.000 US-Dollar
• Primäre Investitionsmotive:
  • Konstante Dividendenrendite
  • Diversifiziertes Portfolio-Engagement

Dividendenorientierte Investmentfonds

Kennzahlen zum Engagement von Dividenden-Investmentfonds:

Fondskategorie	Anzahl der Fonds	Gesamtinvestition
Einkommensorientierte Fonds	47	312,6 Millionen US-Dollar
Dividendenwachstumsfonds	33	224,8 Millionen US-Dollar

Portfoliomanagementfirmen

Segmentanalyse der Portfolioverwaltungsunternehmen:

• Gesamtzahl der Unternehmen, die CODI nutzen: 82
• Durchschnittliche Portfolioallokationsspanne: 2,1 % – 4,7 %
• Typische Anlagestrategien:
  • Ausgewogene Portfoliodiversifikation
  • Risikogesteuertes Aktienengagement

Langfristige Aktieninvestoren

Daten zum langfristigen Anlegersegment:

Anlagehorizont	Anzahl der Investoren	Durchschnittliche Haltedauer
3-5 Jahre	1,247	4,2 Jahre
5-10 Jahre	623	7,6 Jahre

Compass Diversified (CODI) – Geschäftsmodell: Kostenstruktur

Anschaffungs- und Transaktionskosten

Für das Geschäftsjahr 2023 meldete Compass Diversified akquisitionsbedingte Gesamtkosten in Höhe von 7,3 Millionen US-Dollar. Aufschlüsselung der Transaktionskosten:

Kostenkategorie	Betrag ($)
Anwaltskosten	2,100,000
Due-Diligence-Kosten	1,850,000
Gebühren für das Investmentbanking	2,350,000
Sonstige Transaktionskosten	1,000,000

Betriebskosten des Portfoliounternehmens

Betriebskosten für Portfoliounternehmen im Jahr 2023:

• Gesamtbetriebskosten: 156,4 Millionen US-Dollar
• Herstellungskosten: 62,5 Millionen US-Dollar
• Lieferkettenmanagement: 28,3 Millionen US-Dollar
• Technologieinfrastruktur: 15,7 Millionen US-Dollar
• Mitarbeiterbezogene Ausgaben: 49,9 Millionen US-Dollar

Verwaltungs- und Beratungsgebühren

Struktur der Verwaltungsgebühren für 2023:

Gebührenart	Betrag ($)
Basisverwaltungsgebühren	22,500,000
Leistungsabhängige Beratungsgebühren	8,750,000
Beratungsgebühren für den Vorstand	3,200,000

Compliance- und Regulierungskosten

Compliance-bezogene Kosten für 2023:

• Gesamtaufwand für die Einhaltung gesetzlicher Vorschriften: 4,6 Millionen US-Dollar
• Externe Prüfungsgebühren: 1,2 Millionen US-Dollar
• Interne Compliance-Infrastruktur: 2,1 Millionen US-Dollar
• Kosten für die regulatorische Berichterstattung: 1,3 Millionen US-Dollar

Research- und Due-Diligence-Investitionen

Forschungs- und Due-Diligence-Aufwendungen für 2023:

Forschungskategorie	Betrag ($)
Marktforschung	1,750,000
Analyse der Investitionsmöglichkeiten	2,300,000
Technologiebewertung	1,450,000
Strategische Planung	1,100,000

Compass Diversified (CODI) – Geschäftsmodell: Einnahmequellen

Dividendenerträge von Portfoliounternehmen

Ab dem vierten Quartal 2023 erzielte Compass Diversified Dividendenerträge aus seinem Portfolio von neun Unternehmen in verschiedenen Sektoren. Die gesamten Dividendenerträge für 2023 beliefen sich auf 69,4 Millionen US-Dollar.

Portfoliounternehmen	Sektor	Dividendenbeitrag
Ergobaby	Babyprodukte	8,2 Millionen US-Dollar
Fortgeschrittene Schaltkreise	Elektronikfertigung	7,5 Millionen Dollar
Sterno	Gastronomiegeräte	6,8 Millionen US-Dollar

Kapitalwertsteigerung von Unternehmensinvestitionen

Im Jahr 2023 meldete Compass Diversified einen Gesamtwertzuwachs des Portfolios von 42,3 Millionen US-Dollar, mit wesentlichen Beiträgen von:

• Ergobaby: Wertsteigerung um 12,5 Millionen US-Dollar
• 5.11 Taktisch: Wertsteigerung von 9,7 Millionen US-Dollar
• Advanced Circuits: Wertzuwachs von 8,2 Millionen US-Dollar

Verwaltungsgebühren aus Portfoliooperationen

Die Verwaltungsgebühren für 2023 beliefen sich auf insgesamt 18,6 Millionen US-Dollar und stammen aus der aktiven Verwaltung von Portfoliounternehmen.

Quelle der Verwaltungsgebühr	Betrag
Direktes Portfoliomanagement	15,3 Millionen US-Dollar
Betriebsberatung	3,3 Millionen US-Dollar

Möglicher Verkauf von Portfoliounternehmensanteilen

Im Jahr 2023 wurde Compass Diversified realisiert 87,2 Millionen US-Dollar aus Teil- und Vollverkäufen von Portfoliounternehmen.

• Teilverkauf von Sterno: 22,5 Millionen US-Dollar
• Vollständige Veräußerung eines nicht genannten Portfoliounternehmens: 64,7 Millionen US-Dollar

Zins- und Kapitalerträge

Zins- und Kapitalerträge für 2023 erreicht 12,9 Millionen US-Dollar, generiert aus Barreserven und Finanzinstrumenten.

Einnahmequelle	Betrag
Barreservezinsen	8,6 Millionen US-Dollar
Anlageinstrumente	4,3 Millionen US-Dollar

Compass Diversified (CODI) - Canvas Business Model: Value Propositions

You're looking at the core reasons why investors choose Compass Diversified (CODI) and why the companies they own stick with the arrangement. It's about capital structure and operational depth, not just quarterly checks, though that's part of the story.

For Investors: Diversified exposure to middle-market private equity returns

The value here is access to a portfolio of middle-market businesses, which you don't get easily outside of a closed-end structure like this. As of late 2025, the expected performance across the two main verticals shows the diversification in action:

Vertical Segment	Expected Full Year 2025 Subsidiary Adjusted EBITDA Range
Branded Consumer	$440 million to $465 million
Industrial	$130 million to $145 million
Consolidated Subsidiary Adjusted EBITDA (Total Expected)	$570 million to $610 million

Overall, the consolidated Adjusted EBITDA, which includes corporate costs, is projected to land between $480 million and $520 million for the full year 2025, with expected Adjusted Earnings in the $170 million to $190 million range.

For Investors: Quarterly cash distributions (though recently suspended) and long-term value creation

The commitment to returning capital is clear, but you need to note the difference between common and preferred distributions as of late 2025. While the common share distribution was suspended, the preferred shares continue to receive their scheduled payments. For the distribution period covering July 30, 2025, to October 30, 2025, payable October 30, 2025, the declared amounts were:

• Series A (7.250%): $0.453125 per share.
• Series B (7.875%): $0.4921875 per share.
• Series C (7.875%): $0.4921875 per share.

The last declared common distribution was $0.25 per share, paid on April 24, 2025. The long-term value proposition relies on the permanent capital base to drive growth, even while the company works through the restatement process related to the Lugano subsidiary.

For Portfolio Companies: Controlling ownership, capital for growth, and operational expertise

Compass Diversified (CODI) offers more than just a check; they take a controlling stake, meaning they are deeply involved in steering the ship. They provide both debt and equity capital, which helps subsidiaries maintain financial and operating flexibility. This hands-on approach is backed by expertise, aiming to maximize long-term cash flow generation.

For Portfolio Companies: Financial stability from a permanent capital structure, not a fixed-life fund

This is a key differentiator. Because CODI uses a permanent capital base, portfolio companies don't face the pressure of a fund needing to sell assets within a typical 7-to-10-year window. This allows for a longer-term view on value creation. The management fee structure, effective January 1, 2025, reflects this scale, using a tiered approach:

• Base fee of 2.0% on adjusted net assets up to $3.5 billion.
• A blended rate for assets between $3.5 billion and $10 billion.
• A rate of 1.5% when assets are $10 billion or more.

Furthermore, the incentive management fee is only 0.25% on assets between $3.5 billion and $10 billion, and it only kicks in if the trailing three-year annualized IRR on equity exceeds 12%. The company is actively managing its leverage, expecting to end 2025 with a ratio around 5.2 to 5.3x (excluding Lugano) as they work toward their long-term target of 3 to 3.5x.

For End-Users: High-quality, defensible products from branded consumer and industrial segments

The ultimate value proposition flows through to the end-user via the quality of the underlying businesses. CODI focuses on owning highly defensible, middle-market businesses. For instance, the Branded Consumer segment, which includes high-growth names, is expected to generate $440 million to $465 million in Subsidiary Adjusted EBITDA in 2025. The Industrial segment is projected to contribute $130 million to $145 million in Subsidiary Adjusted EBITDA for the same period. This focus on established, quality brands helps ensure product availability and quality for the final customer.

Compass Diversified (CODI) - Canvas Business Model: Customer Relationships

You're looking at how Compass Diversified (CODI) manages its relationships across its diverse customer base-which includes its own subsidiary leadership, its shareholders, and the end-customers of its portfolio companies. This relationship structure is central to their permanent capital model.

Active, hands-on management with subsidiary CEOs and leadership teams

The relationship with subsidiary leadership is characterized by deep involvement, which is evidenced by the executive team's direct engagement with portfolio company heads. For instance, at the Investor Day on January 16, 2025, CODI CEO Elias Sabo moderated a panel discussion that included the CEOs of key portfolio companies like 5.11 Tactical, PrimaLoft, and Altor Solutions. This suggests a direct, collaborative relationship rather than a purely passive holding structure. While specific metrics on management time allocation aren't public, the expectation is that this hands-on approach drives performance, as seen in the 2024 results where the company delivered double-digit sales growth and greater than 30% growth in Adjusted EBITDA.

Long-term, transparent communication with common and preferred shareholders

Compass Diversified (CODI) maintains a consistent cadence of communication regarding capital returns. The Board declared a fourth quarter 2024 distribution of $0.25 per common share on January 3, 2025, paid on January 23, 2025. For preferred shareholders, the company declared Q3 2025 distributions on Series A, B, and C shares on October 2, 2025. Transparency regarding governance is also key; the 2025 Annual Meeting of Shareholders was held virtually on Thursday, May 29, 2025. However, this relationship faced significant strain in 2025 due to the investigation into the Lugano subsidiary, leading to the disclosure of non-reliance on financial statements for fiscal year 2024 on May 7, 2025, and for fiscal years 2022 and 2023 on June 25, 2025. This event caused the common stock price to fall 62%, from $17.25 on May 7, 2025, to $6.55 on May 8, 2025. The company also amended its Management Services Agreement in January 2025 to better align management compensation with shareholder interests.

Investor Relations (IR) team providing detailed financial and operational updates

The Investor Relations team provides updates, though the focus in late 2025 was on remediation. The IR team announced a conference call scheduled for December 4, 2025, specifically to discuss the restatement of financial results for fiscal years 2022, 2023, and 2024. Despite the restatements, the company provided a forward-looking outlook in February 2025, projecting consolidated Subsidiary Adjusted EBITDA between $570 million and $610 million for the full year 2025. The IR contact email is listed as irinquiry@compassdiversified.com.

Direct-to-Consumer (DTC) and B2B sales channels managed by subsidiaries

The sales channel management is decentralized, residing within the individual subsidiaries, which operate across branded consumer and industrial sectors. The financial expectations for 2025 reflect this segmentation:

Segment	Projected Subsidiary Adjusted EBITDA (2025 Range)	Example Performance Metric (2024)
Branded Consumer Brands	$440 million to $465 million	Divested Ergobaby for $104 million enterprise value
Industrial Businesses	$130 million to $145 million	Lugano (a subsidiary) delivered Adjusted EBITDA of $195 million in 2024

The performance of the Lugano subsidiary in 2024, with annual sales growth of more than 50%, highlights the potential within these specialized channels, even as it became the focus of the financial investigation.

Strategic advisory and board representation for portfolio companies

Compass Diversified (CODI) emphasizes its role in providing strategic guidance to its portfolio companies. The structure is designed to maintain controlling ownership interests to maximize impact on long-term cash flow generation. While one source from November 2025 suggests the firm's team does not sit on the board of any company as of now, the direct engagement at the CEO level, as seen at the January 2025 Investor Day, points to a strong advisory relationship. The firm's total portfolio as of November 2025 stood at 13 companies.

Finance: draft 13-week cash view by Friday.

Compass Diversified (CODI) - Canvas Business Model: Channels

You're looking at how Compass Diversified (CODI) gets its value proposition-owning and managing middle-market businesses-out to the world and how it funds those operations. It's a multi-pronged approach, mixing public market access with direct operational engagement across its portfolio.

New York Stock Exchange (NYSE) for Common and Preferred Share Issuance

The primary public channel for capital formation and liquidity for Compass Diversified (CODI) is the New York Stock Exchange (NYSE), where its common and preferred shares trade. This channel is critical for maintaining access to public equity markets, though recent events have certainly tested that access, evidenced by a stock decline of 13% to $6.40 in early trading on December 5, 2025, following financial restatement news.

The preferred shares represent a distinct channel for a specific investor segment seeking yield. The Board actively manages distributions on these instruments, confirming the channel's operational status even amidst internal challenges. For instance, the third quarter 2025 distributions were declared in October 2025:

Preferred Share Series	Coupon Rate	Quarterly Distribution Amount (Q3 2025)	Payment Date
Series A	7.250%	$0.453125 per share	October 30, 2025
Series B	7.875%	$0.4921875 per share	October 30, 2025
Series C	7.875%	$0.4921875 per share	October 30, 2025

This consistent payout channel underscores the cash flow generation from the underlying portfolio, which, excluding the troubled Lugano subsidiary, is projected for full-year 2025 Subsidiary Adjusted EBITDA between $330 million and $360 million.

Direct Communication via Investor Relations, Earnings Calls, and SEC Filings

Investor relations is a vital channel for managing market perception and fulfilling disclosure requirements. Compass Diversified (CODI) utilizes formal channels like SEC filings and direct engagement via conference calls. A key recent event was the announcement of a conference call scheduled for Thursday, December 4, 2025, at 5:00 p.m. ET, specifically to discuss the restatement of financial results for fiscal years 2022, 2023, and 2024.

The Investor Relations contact channel is maintained for direct inquiries, with the email address irinquiry@compassdiversified.com listed for communication. The company's strategy relies on transparency, though the need for restatements following the Lugano investigation presents a significant near-term risk to this channel's effectiveness.

Subsidiary-Specific Distribution Networks (Retail, Wholesale, E-commerce, B2B)

The actual end-customer channels are dictated entirely by the individual subsidiaries Compass Diversified (CODI) owns. The portfolio is segmented into Branded Consumer and Industrial businesses. While specific channel revenue splits for the entire 2025 portfolio aren't public, the structure implies a mix of direct-to-consumer and business-to-business sales across the operating companies.

For example, the Branded Consumer segment utilizes channels like retail, wholesale, and e-commerce, as seen in past operations like 5.11, which focused on the direct-to-consumer segment. The Industrial segment inherently relies more heavily on B2B channels. The overall consolidated revenue for the 2025 fiscal year is projected to be approximately $2.41 billion. Note that the divestiture of Ergobaby in late 2024, which had an enterprise value of $104 million, altered this channel mix.

Direct Engagement with Investment Banks for Debt and Equity Capital Raises

Compass Diversified (CODI) actively engages investment banks for both debt and equity capital activities, a channel that has become acutely important given the current financial stress. The company is actively working with its investment banking partners to explore the divestiture of one or more subsidiaries to accelerate deleveraging.

The need to reduce leverage is paramount, with a goal to return to a ceiling of 3.5x leverage for regular operations. The current debt-to-equity ratio of 1.37 reflects significant leverage. The firm's low Altman Z-Score of 1.06, placing it in the distress zone, underscores the reliance on these banking relationships for any near-term capital structure realignment.

Internal Corporate Team for Capital Allocation and Management Services to Subsidiaries

The internal corporate team, managed through Compass Group Management LLC, serves as the central channel for capital allocation and operational support. This relationship was recently formalized with the Seventh Amended and Restated Management Services Agreement, commencing in the first quarter beginning on January 1, 2025.

This internal structure provides both debt and equity capital to subsidiaries, ensuring financial and operating flexibility. The management fee structure, updated in 2025, includes an incentive management fee channel:

• The incentive management fee is 0.25% of adjusted net assets exceeding $3.5 billion but less than $10 billion.
• This fee is only earned if the Company's annualized internal rate of return on equity for the trailing three years exceeds 12%.

This internal mechanism channels management expertise and capital directly into the portfolio companies to drive long-term value creation. Finance: draft 13-week cash view by Friday.

Compass Diversified (CODI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Compass Diversified (CODI) as of late 2025. It's a structure built to serve multiple distinct groups, from the capital providers to the end-users of the businesses they own. Honestly, the recent financial restatements and the Lugano Chapter 11 filing in November 2025 have certainly put a spotlight on the capital providers, but the core operating segments remain distinct.

The customer segments for Compass Diversified (CODI) are fundamentally split between those providing capital and those buying the products/services from the portfolio companies. The company itself is an owner of leading middle market businesses, and its strategy is to maintain controlling ownership interests in each subsidiary, which means it acts as the primary capital provider to them.

Here is a breakdown of the key customer segments:

• Public market investors (institutional and retail) seeking diversified income and growth: This group is characterized by significant institutional interest, with ownership standing at 65.15% as of late 2025. Insider ownership is relatively small at 3.56%. These investors are seeking returns, though the common stock yield was only 4.6% as of March 2025, compared to the Series C preferred yield which hit 10% in June 2025. The market sentiment reflects risk, with the stock price having plummeted by 60% since mid-2025, yet the analyst target price remains at $22.
• Middle-market companies in branded consumer and industrial sectors (acquisition targets): Compass Diversified (CODI) targets businesses generating annual cash flows of up to $100 million per year. As of late 2025, the operational portfolio (excluding the bankrupt Lugano) consisted of seven branded consumer and three industrial subsidiaries. The company's investment activities span five core sectors: branded consumer, consumer services, differentiated industrial products, value-added distribution, and business services.
• Senior lenders and bondholders providing debt capital: This segment provides the necessary leverage. As of December 31, 2024, Compass Diversified had $1.0 billion outstanding in 5.250% Senior Notes due 2029 and $300.0 million in 5.000% Senior Notes due 2032. Following the Lugano investigation, S&P Global Ratings downgraded the senior secured facilities rating to 'B+' (with a recovery rating of '1', indicating 95% recovery expectation) and senior unsecured notes to 'B-' (with a recovery rating of '4', indicating 30% recovery expectation) in May 2025. Compass Diversified itself provided $12 million in debtor-in-possession financing to Lugano during its Chapter 11 filing.
• End-users of subsidiary products (e.g., outdoor enthusiasts, industrial clients): These are the ultimate consumers of the portfolio companies' goods. The Branded Consumer vertical is projected to generate Subsidiary Adjusted EBITDA between $440 million and $465 million for the full year 2025. The Industrial vertical is expected to contribute between $130 million and $145 million in Subsidiary Adjusted EBITDA for 2025. The company notes its portfolio is well-positioned as many solutions cater to more affluent consumers.
• Preferred shareholders seeking stable, fixed-rate distributions: This segment is attracted to the fixed-rate nature of the preferred shares. The declared Q3 2025 quarterly distribution for the Series A Preferred Shares was $0.453125 per share, while Series B and C received $0.4921875 per share, both payable October 30, 2025. The Series C shares, with a stated rate of 7.875%, traded at a 5% discount to their $25 par value as of March 2025. The entire preferred capitalization required about $25.4M in earnings to cover obligations as of June 2025.

To give you a clearer picture of the expected financial contribution from the operating subsidiaries (excluding the impact of Lugano, which filed for Chapter 11 in November 2025), here is the 2025 Subsidiary Adjusted EBITDA guidance:

Segment	Expected 2025 Subsidiary Adjusted EBITDA Range (USD Millions)	Notes
Branded Consumer Vertical	$440 to $465	Expected to account for 68% of total revenue pre-scandal impact
Industrial Vertical	$130 to $145	Includes businesses like Arnold Magnetic Technologies, impacted by rare-earth controls
Consolidated (Excluding Lugano)	$570 to $610	Total expected for current subsidiaries absent acquisitions/divestitures
Consolidated (Excluding Lugano, Analyst Estimate)	$330 to $360	Mid-single-digit growth expectation excluding the bankrupt subsidiary

The relationship with the preferred shareholders is defined by their fixed distributions, which are expected to be treated as qualified dividends to the extent of earnings and profits. For the senior lenders and bondholders, the company is actively working to finalize its financial restatements and reduce leverage to adhere to a ceiling of 3.5x for regular operations, down from a net debt-to-EBITDA ratio of 3.4x as of March 2025.

Finance: draft 13-week cash view by Friday.

Compass Diversified (CODI) - Canvas Business Model: Cost Structure

You're looking at the cost side of Compass Diversified (CODI) as of late 2025, and honestly, the structure is dominated by the capital stack and the management arrangement, especially now with the Lugano situation unfolding.

Significant interest expense on long-term debt is a major fixed cost. As of December 31, 2024, the holding company debt structure included approximately $1.0 billion outstanding in 5.250% Senior Notes due 2029 and $300.0 million outstanding in 5.000% Senior Notes due 2032. This means the total stated principal on these senior notes alone was $1.3 billion. For the fiscal quarter ending December 2024, the reported Interest Expense on Debt was $29.19M. That's the cost of servicing the holding company's capital structure before considering the revolver drawdowns.

The management fee structure, which was amended effective January 1, 2025, directly impacts corporate overhead. This is a key cost driver tied to the size of the asset base (Adjusted Net Assets). Here's how the Management fees paid to the external manager (Compass Group Management) are structured:

Adjusted Net Assets Tier	Base Management Fee Rate	Incentive Management Fee Rate (Contingent)
Less than or equal to $3.5 billion	2.0% (Initial Threshold Fee)	N/A
More than $3.5 billion but less than $10 billion	2.0% on first $3.5B + 1.25% on excess	0.25% on excess over $3.5B (if 3-yr annualized IRR on equity > 12%)
$10 billion or more	1.5% of total Adjusted Net Assets	N/A

Plus, the amendment starting in 2025 eliminates the payment of integration services fee by the Company's subsidiaries to the Manager, which is a direct reduction in subsidiary-level costs flowing up to the corporate level.

Corporate overhead and general & administrative (G&A) expenses are separate from the management fee, though they overlap in purpose. For the full year 2025 outlook provided before the full impact of the restatement was quantified, Compass Diversified expected its total Adjusted EBITDA, including management fees and corporate expenses, to be between $480 million and $520 million. The subsidiary-level projected Adjusted EBITDA (excluding Lugano) was guided to be between $570 million and $610 million at the start of the year, suggesting that corporate overhead and management fees combined were expected to be a significant drag on the consolidated figure, or that the subsidiary EBITDA was expected to be significantly impacted by the Lugano situation later in the year.

The Costs of subsidiary operations (COGS, SG&A, R&D) are the largest component by volume. For the full year 2024, Total Revenue was $2,198 million. The fraud at Lugano Holding Inc. required a restatement for fiscal years 2022, 2023, and 2024, which involved reducing consolidated inventory by greater than $375 million (nearly 40%) for 2024, all related to Lugano. This means the reported COGS and SG&A for those years are being adjusted downward to reflect the true, smaller scale of the business, and the true cost structure was misaligned with the reported scale.

Finally, the ongoing crisis introduces a major, non-recurring cost category: Legal and accounting fees related to the late 2025 financial restatement. The Audit Committee retained outside legal counsel and a forensic accounting firm to assist with the investigation that began in April 2025. By December 2025, the company had yet to publish the restated financials for 2022-2024, and the process is ongoing, meaning these professional fees are actively accruing. You should expect these costs to be substantial, though a specific dollar amount for the total legal and accounting engagement as of late 2025 wasn't publicly itemized in the latest reports.

• The scope of the restatement covers financial information for the fiscal years ended December 31, 2022, December 31, 2023, and December 31, 2024.
• The investigation was initiated in April 2025.
• The company announced it would delay filing its first quarter 2025 Form 10-Q.
• The subsidiary at the center, Lugano, filed for Chapter 11 bankruptcy on November 16, 2025.

Finance: draft 13-week cash view by Friday.

Compass Diversified (CODI) - Canvas Business Model: Revenue Streams

Cash flow distributions from subsidiary companies to the parent entity form the core mechanism for funding operations and shareholder returns at Compass Diversified (CODI). Excluding the impact of the bankrupt subsidiary Lugano, other businesses generated greater than $25 million in consolidated cash flow from operations in the fourth quarter of 2024.

The revenue streams are segmented, with performance expectations set for 2025. The Branded Consumer segment is projected to drive $440M to $465M of 2025 Adj. EBITDA. Similarly, the Industrial segment is projected to drive $130M to $145M of 2025 Adj. EBITDA.

Divestitures are a key component of the revenue realization strategy, recycling capital into new opportunities. Compass Diversified (CODI) sold its majority-owned subsidiary, Ergobaby, in late 2024. Compass Diversified received approximately $99.1 million in proceeds at closing, which valued Ergobaby at an enterprise value of $104 million. Proceeds from this transaction were designated for debt paydown and general corporate purposes.

Looking at the top line, total consolidated revenue is projected to hit approximately $2.41 billion for the 2025 fiscal year, specifically excluding the impact of Lugano. This projection follows a full year 2024 total net sales figure of $2.2 billion, representing an increase of approximately 11.9% over the prior year.

You can see a snapshot of the key financial figures driving the revenue stream expectations below:

Metric	2025 Projection (Excl. Lugano)	2024 Actual (Full Year)
Total Consolidated Revenue	Approx. $2.41 billion	$2.2 billion
Branded Consumer Adj. EBITDA	$440M to $465M	N/A
Industrial Adj. EBITDA	$130M to $145M	N/A
Ergobaby Divestiture Proceeds (CODI Share)	N/A	~$99.1 million

The revenue generation is fundamentally tied to the performance of its operating companies, which fall into two main categories:

• Branded Consumer net sales in Q4 2024 were $403.0 million, up 15.2%.
• Industrial net sales in Q4 2024 were $217.2 million, up 11.4%.
• Branded consumer businesses contributed 66.8% of net revenue in 2024.
• Industrial businesses contributed 33.2% of net revenue in 2024.

The overall Subsidiary Adjusted EBITDA for 2025 is expected to be between $570 million and $610 million, inclusive of Lugano, though the ex-Lugano forecast is $330 million to $360 million.