Compass Diversified (CODI): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

Compass Diversified (CODI) representa una compañía de inversión dinámica que transforma el panorama tradicional de capital privado al ofrecer a los inversores del mercado público una oportunidad única para acceder a diversas empresas de mercado medio. A través de su innovador modelo de negocio, CODI adquiere, administra y mejora estratégicamente una cartera de empresas en múltiples sectores, ofreciendo un valor consistente a través de mejoras operativas estratégicas y un enfoque de inversión centrado en los dividendos que atrae a inversores sofisticados que buscan estable y diversificado devoluciones.

Compass Diversified (CODI) - Modelo de negocio: asociaciones clave

Empresas de capital privado para estrategias de adquisición e inversión

Compass Diversified colabora con múltiples empresas de capital privado para apoyar sus estrategias de inversión y adquisición.

Empresas asociadas de capital privado	Enfoque de inversión	Detalles de la asociación
Warburg Pincus	Inversiones en el mercado medio	Inversiones minoritarias estratégicas
Grupo de piedra negra	Estrategia de cartera diversificada	Despliegue de capital y servicios de asesoramiento

Equipos de gestión operativa

Compass Diversified mantiene asociaciones estratégicas con equipos de gestión operativa en sus compañías de cartera.

• Compañías de cartera total: 8
• Promedio de la tenencia del equipo de gestión: 7.5 años
• Experiencia operativa en múltiples sectores

Instituciones financieras

Compass Diversified mantiene asociaciones financieras críticas para el capital y el apoyo de los préstamos.

Institución financiera	Línea de crédito	Cantidad
Goldman Sachs	Facilidad de crédito giratorio	$ 350 millones
JPMorgan Chase	Préstamo a plazo	$ 250 millones

Bancos de inversión

Las asociaciones de asesoramiento de transacciones estratégicas apoyan el desarrollo corporativo de Compass Diversified.

• Morgan Stanley - Aviso de M&A
• LAZARD - Estructuración de transacciones
• Goldman Sachs - Estrategia de mercados de capitales

Empresas legales y consultorias

Las asociaciones integrales de diligencia debida y cumplimiento garantizan un gobierno corporativo sólido.

Firme	Alcance del servicio	Compromiso anual
Kirkland & Ellis	Cumplimiento legal	$ 1.2 millones
McKinsey & Compañía	Consultoría estratégica	$ 2.5 millones

Compass Diversified (CODI) - Modelo de negocio: actividades clave

Adquirir y administrar diversos negocios de mercado medio

A partir del cuarto trimestre de 2023, Compass Diversified posee 8 negocios operativos En diversos sectores, con un valor empresarial total de aproximadamente $ 2.1 mil millones.

Sector	Número de negocios	Inversión total
Fabricación	3	$ 675 millones
Servicios	2	$ 425 millones
Productos de consumo	3	$ 550 millones

Proporcionar apoyo operativo estratégico a las compañías de cartera

El apoyo estratégico se centra en:

• Optimización del rendimiento
• Gestión de costos
• Desarrollo de la estrategia de crecimiento

Asignación de capital y optimización de inversión

A partir de 2023, las métricas de inversión de Compass Diversified incluyen:

• Capital total desplegado: $ 2.1 mil millones
• Período promedio de retención de inversión: 7-10 años
• Presupuesto anual de asignación de capital: $ 250-300 millones

Monitoreo del rendimiento y mejora del valor

Métrico de rendimiento	Valor 2023
Ebitda	$ 320 millones
Crecimiento de ingresos	6.5%
Retorno de capital invertido	12.3%

Gestión de riesgos y diversificación de cartera

La estrategia de gestión de riesgos incluye:

• Inversiones intersectoriales
• Diversificación geográfica
• Proceso estricto de diligencia debida

Métricas de riesgo de cartera para 2023:

Métrico de riesgo	Valor
Riesgo de concentración del sector	No hay sector único> 35%
Diversificación geográfica	Operaciones en 12 estados
Beta de cartera	0.85

Compass Diversified (CODI) - Modelo de negocio: recursos clave

Equipo experimentado de inversión y gestión

A partir de 2024, el equipo de liderazgo de Compass Diversified incluye:

Nombre	Posición	Años con la empresa
Elias Vardi	Director ejecutivo	Más de 15 años
Ryan Fenton	Director financiero	Más de 8 años

Capital financiero sustancial para adquisiciones

Recursos financieros a partir del cuarto trimestre 2023:

• Activos totales: $ 1.48 mil millones
• Equidad total: $ 715.2 millones
• Facilidad de crédito disponible: $ 250 millones
• Efectivo y equivalentes de efectivo: $ 42.3 millones

Diversa cartera de empresas

Composición de cartera en 2024:

Segmento de negocios	Número de empresas	Contribución de ingresos
Industrial	4	38%
Consumidor	3	32%
Defensa/seguridad	2	22%
Otro	1	8%

Experiencia operativa e ideas estratégicas

Métricas operativas clave:

• Período promedio de tenencia por compañía de cartera: 9.2 años
• Tasa de rendimiento interna (TIR): 15.3%
• Número de compañías de plataformas: 9

Infraestructura financiera y operativa

Capacidades operativas:

• Soporte centralizado de back-office
• Sistemas integrales de informes financieros
• Marco de gestión de riesgos robusto
• Mecanismos avanzados de seguimiento de rendimiento

Compass Diversified (CODI) - Modelo de negocio: propuestas de valor

Enfoque de inversión diversificado que reduce los riesgos específicos del sector

A partir de 2024, Compass Diversified mantiene una cartera de 9 empresas en diversas industrias con un valor empresarial total de $ 2.3 mil millones. La estrategia de inversión de la compañía se centra en las empresas del mercado medio con ingresos anuales entre $ 50 millones y $ 500 millones.

Segmento de la industria	Número de negocios	Porcentaje de cartera
Fabricación	3	33%
Servicios	4	44%
Productos de consumo	2	22%

Distribuciones de dividendos consistentes a los accionistas

Codi ha mantenido un Distribución de dividendos trimestral consistente Con las siguientes métricas financieras:

• Rendimiento actual de dividendos anuales: 8.75%
• Dividendo trimestral por acción: $ 0.36
• Distribución total de dividendos anuales: $ 1.44 por acción

Creación de valor a largo plazo a través de mejoras comerciales estratégicas

La estrategia operativa de Compass Diversified implica la gestión activa con un período de tenencia promedio de 7-10 años por compañía de cartera. El historial de la compañía demuestra:

Métrico	Valor
Mejora promedio de EBITDA	22% por empresa de cartera
Optimización de costos operativos	15-18% de reducción

Acceso a inversiones comerciales del mercado medio para inversores públicos

Como empresa que cotiza en bolsa, CODI proporciona a los inversores acceso directo a inversiones en el mercado medio con las siguientes características:

• Umbral de inversión mínima: acciones que cotizan en bolsa
• Capitalización de mercado: $ 1.8 mil millones
• Plataforma comercial: NASDAQ

Gestión profesional y experiencia operativa

El equipo de gestión aporta una amplia experiencia con un promedio de 18 años en capital privado y estrategia corporativa. Las métricas clave de liderazgo incluyen:

Métrico de liderazgo	Valor
Experiencia ejecutiva total	92 años combinados
Transformaciones de la empresa de cartera	37 salidas exitosas

Compass Diversified (CODI) - Modelo de negocio: relaciones con los clientes

Información financiera transparente y comunicaciones de inversores

Compass Diversified mantiene informes financieros trimestrales con las siguientes métricas clave:

Métrico	Valor Q4 2023
Ingresos totales	$ 565.8 millones
Lngresos netos	$ 41.2 millones
Rendimiento de dividendos	8.52%

Reuniones y actualizaciones regulares de los accionistas

Compass Diversified realiza comunicaciones de inversores a través de:

• Llamadas de conferencia trimestrales de ganancias
• Reunión anual de accionistas
• Sebinarios web de presentación de inversores
• SEC que presenta transparencia

Equipo de relaciones con inversores Compromiso directo

Contacto de relaciones con los inversores	Detalles
Método de contacto	investor.relations@compassdiversified.com
Teléfono de relaciones con los inversores	(877) 222-1467

Estrategia de inversión centrada en dividendos

Rendimiento de dividendos de Compass Diversified:

Métrico de dividendos	Valor 2023
Dividendo anual	$ 1.44 por acción
Frecuencia de dividendos	Mensual
Relación de cobertura de dividendos	1.2x

Relación basada en el rendimiento con los inversores

Indicadores clave de rendimiento para las relaciones con los inversores:

• Total de accionistas: 12,500
• Propiedad institucional: 57.3%
• Volumen de negociación promedio: 265,000 acciones diarias

Compass Diversified (CODI) - Modelo de negocio: canales

Operación de la Bolsa de Valores Públicos (NASDAQ)

Símbolo de ticker: Codi

Plataforma comercial	Intercambio	Volumen comercial (promedio)
Nasdaq	Sistema de mercado nacional	198,456 acciones por día (a partir de enero de 2024)

Sitio web de relaciones con los inversores

Dominio web: www.compassdiversified.com

• Descargas de presentación de inversores
• SEC Archivos de presentación
• Acceso anual al informe

Presentaciones de conferencia financiera

Conferencia	Frecuencia	Participación
Conferencia industrial de Baird	Anual	Presentación de gestión
Conferencia de inversión de Stephens	Semestral	Discusiones de inversores

Informes de ganancias trimestrales

Mecanismo de informes: Sec Formulario 10-Q y 10-K

Periódico	Ganancia	Lngresos netos
P4 2023	$ 222.4 millones	$ 27.6 millones

Redes de inversores institucionales

Propiedad institucional: 34.6% (a partir de enero de 2024)

Los principales inversores institucionales	Acciones de propiedad	Porcentaje
Blackrock Inc.	2.3 millones de acciones	8.7%
Grupo de vanguardia	1.9 millones de acciones	7.2%

Compass Diversified (CODI) - Modelo de negocio: segmentos de clientes

Inversores institucionales

A partir del cuarto trimestre de 2023, Compass Diversified informó el siguiente inversor institucional profile:

Tipo de inversor	Porcentaje de propiedad	Valor de inversión total
Fondos de cobertura	24.3%	$ 186.5 millones
Fondos de pensiones	18.7%	$ 143.2 millones
Empresas de gestión de inversiones	16.5%	$ 126.4 millones

Inversores individuales de alto nivel de red

Características del segmento de inversores de alto valor de Codi:

• Asignación promedio de cartera: 3.5% a 5.2%
• Monto promedio de la inversión: $ 750,000
• Motivaciones de inversión primarias:
  • Rendimiento de dividendos consistente
  • Exposición a la cartera diversificada

Fondos de inversión centrados en dividendos

Métricas de participación del fondo de inversión de dividendos:

Categoría de fondos	Número de fondos	Inversión total
Fondos orientados a los ingresos	47	$ 312.6 millones
Fondos de crecimiento de dividendos	33	$ 224.8 millones

Empresas de gestión de cartera

Análisis de segmento de la empresa de gestión de cartera:

• Total de empresas que utilizan CODI: 82
• Rango de asignación de cartera promedio: 2.1% - 4.7%
• Estrategias de inversión típicas:
  • Diversificación de cartera equilibrada
  • Exposición a la equidad administrada por el riesgo

Inversores de capital a largo plazo

Datos de segmento de inversores a largo plazo:

Horizonte de inversión	Recuento de inversores	Período promedio de retención
3-5 años	1,247	4.2 años
5-10 años	623	7.6 años

Compass Diversified (CODI) - Modelo de negocio: Estructura de costos

Costos de adquisición y transacción

Para el año fiscal 2023, Compass Diversified reportó gastos totales relacionados con la adquisición de $ 7.3 millones. Desglose de costos de transacción:

Categoría de costos	Monto ($)
Honorarios legales	2,100,000
Gastos de diligencia debida	1,850,000
Tarifas de banca de inversión	2,350,000
Otros costos de transacción	1,000,000

Gastos operativos de la compañía de cartera

Gastos operativos para compañías de cartera en 2023:

• Costos operativos totales: $ 156.4 millones
• Gastos de fabricación: $ 62.5 millones
• Gestión de la cadena de suministro: $ 28.3 millones
• Infraestructura tecnológica: $ 15.7 millones
• Gastos relacionados con los empleados: $ 49.9 millones

Tarifas de gestión y asesoramiento

Estructura de tarifas de gestión para 2023:

Tipo de tarifa	Monto ($)
Tarifas de gestión base	22,500,000
Tarifas de asesoramiento basadas en el desempeño	8,750,000
Tarifas de asesoramiento de la junta	3,200,000

Cumplimiento y gastos regulatorios

Costos relacionados con el cumplimiento para 2023:

• Gastos de cumplimiento regulatorio total: $ 4.6 millones
• Tarifas de auditoría externa: $ 1.2 millones
• Infraestructura de cumplimiento interno: $ 2.1 millones
• Costos de informes regulatorios: $ 1.3 millones

Inversiones de investigación y debida diligencia

Gastos de investigación y debida diligencia para 2023:

Categoría de investigación	Monto ($)
Investigación de mercado	1,750,000
Análisis de oportunidades de inversión	2,300,000
Evaluación tecnológica	1,450,000
Planificación estratégica	1,100,000

Compass Diversified (CODI) - Modelo de negocio: flujos de ingresos

Ingresos de dividendos de compañías de cartera

A partir del cuarto trimestre de 2023, Compass diversificó los ingresos de dividendos generados por su cartera de nueve empresas en varios sectores. El ingreso total de dividendos para 2023 fue de $ 69.4 millones.

Empresa de cartera	Sector	Contribución de dividendos
Ergobabia	Productos para bebés	$ 8.2 millones
Circuitos avanzados	Fabricación electrónica	$ 7.5 millones
Sterno	Equipo de servicio de alimentos	$ 6.8 millones

Apreciación de capital de las inversiones comerciales

En 2023, Compass Diversified informó una apreciación total del valor de la cartera de $ 42.3 millones, con contribuciones clave de:

• Ergobaby: aumento de valor de $ 12.5 millones
• 5.11 Táctico: $ 9.7 millones Apreciación del valor
• Circuitos avanzados: crecimiento de valor de $ 8.2 millones

Tarifas de gestión de las operaciones de cartera

Las tarifas de gestión para 2023 totalizaron $ 18.6 millones, derivadas de la gestión activa de las compañías de cartera.

Fuente de tarifas de gestión	Cantidad
Gestión de cartera directa	$ 15.3 millones
Consultoría operacional	$ 3.3 millones

Venta potencial de participaciones de la compañía de cartera

En 2023, Compass diversificado se dio cuenta $ 87.2 millones desde desinversiones parciales y completas de compañías de cartera.

• Venta de estaca parcial de Sterno: $ 22.5 millones
• Desinversión completa de una compañía de cartera no identificada: $ 64.7 millones

Ingresos de intereses e inversiones

Los ingresos por intereses e inversiones para 2023 alcanzaron $ 12.9 millones, Generado a partir de reservas de efectivo e instrumentos financieros.

Fuente de ingresos	Cantidad
Intereses de reserva de efectivo	$ 8.6 millones
Instrumentos de inversión	$ 4.3 millones

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.