Compass Diversified (CODI): Business Model Canvas [Jan-2025 Mise à jour]

Compass Diversified (CODI) représente une société de portefeuille d'investissement dynamique qui transforme le paysage traditionnel de capital-investissement en offrant aux investisseurs du marché public une occasion unique d'accéder à diverses entreprises du marché intermédiaire. Grâce à son modèle commercial innovant, Codi acquiert, gère et améliore stratégiquement un portefeuille d'entreprises dans plusieurs secteurs, offrant une valeur cohérente grâce à des améliorations opérationnelles stratégiques et à une approche d'investissement axée sur les dividendes qui attire des investisseurs sophistiqués à la recherche écurie et diversifié retourne.

Compass Diversified (codi) - Modèle d'entreprise: partenariats clés

Sociétés de capital-investissement pour les stratégies d'acquisition et d'investissement

Compass Diversified collabore avec plusieurs sociétés de capital-investissement pour soutenir ses stratégies d'investissement et d'acquisition.

Sociétés de capital-investissement partenaires	Focus d'investissement	Détails du partenariat
Warburg Pincus	Investissements sur le marché intermédiaire	Investissements minoritaires stratégiques
Groupe Blackstone	Stratégie de portefeuille diversifiée	Services de déploiement et de conseil en capital

Équipes de gestion opérationnelle

Compass Diversified maintient des partenariats stratégiques avec des équipes de gestion opérationnelle de ses sociétés de portefeuille.

• Compagnies totales de portefeuille: 8
• Tiration moyenne de l'équipe de gestion: 7,5 ans
• Expertise opérationnelle sur plusieurs secteurs

Institutions financières

Compass Diversified maintient des partenariats financiers critiques pour le soutien du capital et des prêts.

Institution financière	Facilité de crédit	Montant
Goldman Sachs	Facilité de crédit renouvelable	350 millions de dollars
JPMorgan Chase	Prêt à terme	250 millions de dollars

Banques d'investissement

Les partenariats de conseil des transactions stratégiques soutiennent le développement d'entreprise de Compass Diversified.

• MORGAN STANLEY - Advisory M&A
• Lazard - Structuration des transactions
• Goldman Sachs - Stratégie des marchés des capitaux

Cabinets juridiques et de conseil

Des partenariats de la diligence raisonnable et de conformité complets garantissent une gouvernance d'entreprise solide.

Ferme	Portée du service	Engagement annuel
Kirkland & Ellis	Conformité légale	1,2 million de dollars
McKinsey & Entreprise	Conseil stratégique	2,5 millions de dollars

Compass Diversified (codi) - Modèle d'entreprise: activités clés

Acquérir et gérer diverses entreprises du marché intermédiaire

Depuis le quatrième trimestre 2023, la boussole diversifiée tient 8 entreprises opérationnelles Dans tous les secteurs, avec une valeur d'entreprise totale d'environ 2,1 milliards de dollars.

Secteur	Nombre d'entreprises	Investissement total
Fabrication	3	675 millions de dollars
Services	2	425 millions de dollars
Produits de consommation	3	550 millions de dollars

Fournir un soutien opérationnel stratégique aux sociétés de portefeuille

Le soutien stratégique se concentre sur:

• Optimisation des performances
• Gestion des coûts
• Développement de stratégie de croissance

Allocation des capitaux et optimisation des investissements

En 2023, les mesures d'investissement de Compass Diversified comprennent:

• Capital total déployé: 2,1 milliards de dollars
• Période d'investissement moyen: 7-10 ans
• Budget annuel d'allocation du capital: 250 à 300 millions de dollars

Surveillance des performances et amélioration de la valeur

Métrique de performance	Valeur 2023
EBITDA	320 millions de dollars
Croissance des revenus	6.5%
Retour sur le capital investi	12.3%

Gestion des risques et diversification du portefeuille

La stratégie de gestion des risques comprend:

• Investissements transversaux
• Diversification géographique
• Processus de diligence raisonnable stricte

Métriques de risque de portefeuille pour 2023:

Métrique à risque	Valeur
Risque de concentration du secteur	Pas de secteur unique> 35%
Diversification géographique	Opérations dans 12 États
Portefeuille bêta	0.85

Compass Diversified (codi) - Modèle d'entreprise: Ressources clés

Équipe expérimentée d'investissement et de gestion

Depuis 2024, l'équipe de direction de Compass Diversified comprend:

Nom	Position	Années en entreprise
Elias Vardi	Directeur général	15 ans et plus
Ryan Fenton	Directeur financier	8 ans et plus

Capital financier substantiel pour les acquisitions

Ressources financières au quatrième trimestre 2023:

• Actif total: 1,48 milliard de dollars
• Équité totale: 715,2 millions de dollars
• Créabilité de crédit disponible: 250 millions de dollars
• Equivalents en espèces et en espèces: 42,3 millions de dollars

Portfolio diversifié d'entreprises

Composition du portefeuille en 2024:

Segment d'entreprise	Nombre d'entreprises	Contribution des revenus
Industriel	4	38%
Consommateur	3	32%
Défense / sécurité	2	22%
Autre	1	8%

Expertise opérationnelle et idées stratégiques

Métriques opérationnelles clés:

• Période de détention moyenne par portefeuille Company: 9,2 ans
• Taux de rendement interne (TRI): 15,3%
• Nombre de sociétés de plateformes: 9

Infrastructure financière et opérationnelle

Capacités opérationnelles:

• Support de back-office centralisé
• Systèmes d'information financière complets
• Cadre de gestion des risques robuste
• Mécanismes avancés de suivi des performances

Compass Diversified (codi) - Modèle d'entreprise: propositions de valeur

Approche d'investissement diversifiée réduisant les risques sectoriels

En 2024, Compass Diversified maintient un portefeuille de 9 entreprises dans diverses industries avec une valeur d'entreprise totale de 2,3 milliards de dollars. La stratégie d'investissement de l'entreprise se concentre sur les sociétés du marché intermédiaire avec des revenus annuels entre 50 et 500 millions de dollars.

Segment de l'industrie	Nombre d'entreprises	Pourcentage de portefeuille
Fabrication	3	33%
Services	4	44%
Produits de consommation	2	22%

Distributions de dividendes cohérentes aux actionnaires

Codi a maintenu un Distribution de dividendes trimestrielle cohérente avec les mesures financières suivantes:

• Rendement de dividendes annuel actuel: 8,75%
• Dividende trimestriel par action: 0,36 $
• Distribution annuelle totale des dividendes: 1,44 $ par action

Création de valeur à long terme grâce à des améliorations commerciales stratégiques

La stratégie opérationnelle de Compass Diversified implique une gestion active avec une période de détention moyenne de 7 à 10 ans par entreprise de portefeuille. Les antécédents de l'entreprise démontrent:

Métrique	Valeur
Amélioration moyenne de l'EBITDA	22% par compagnie de portefeuille
Optimisation des coûts opérationnels	Réduction de 15 à 18%

Accès aux investissements commerciaux du marché intermédiaire pour les investisseurs publics

En tant que société cotée en bourse, Codi fournit aux investisseurs un accès direct aux investissements du marché intermédiaire avec les caractéristiques suivantes:

• Seuil d'investissement minimum: actions cotées en bourse
• Capitalisation boursière: 1,8 milliard de dollars
• Plateforme de trading: NASDAQ

Gestion professionnelle et expertise opérationnelle

L'équipe de direction apporte une vaste expérience avec une moyenne de 18 ans en capital-investissement et en stratégie d'entreprise. Les mesures clés du leadership comprennent:

Métrique de leadership	Valeur
Expérience exécutive totale	92 années combinées
Transformations de l'entreprise de portefeuille	37 sorties réussies

Compass Diversified (codi) - Modèle d'entreprise: relations clients

Rapports financiers transparents et communications des investisseurs

Compass Diversified maintient des rapports financiers trimestriels avec les mesures clés suivantes:

Métrique	Valeur du trimestre 2023
Revenus totaux	565,8 millions de dollars
Revenu net	41,2 millions de dollars
Rendement des dividendes	8.52%

Réunions et mises à jour régulières des actionnaires

Compass Diversified mène les communications des investisseurs à travers:

• Conférences de résultats trimestriels
• Réunion des actionnaires annuelle
• Webinaires de présentation des investisseurs
• Transparence du dépôt de la SEC

Engagement direct de l'équipe des relations avec les investisseurs

Contact sur les relations avec les investisseurs	Détails
Méthode de contact	investor.relations@compassdiversified.com
Téléphone des relations avec les investisseurs	(877) 222-1467

Stratégie d'investissement axée sur les dividendes

Performance de dividendes de Compass Diversified:

Métrique du dividende	Valeur 2023
Dividende annuel	1,44 $ par action
Fréquence des dividendes	Mensuel
Ratio de couverture des dividendes	1,2x

Relation axée sur les performances avec les investisseurs

Indicateurs de performance clés pour les relations avec les investisseurs:

• Total des actionnaires: 12 500
• Propriété institutionnelle: 57,3%
• Volume de trading moyen: 265 000 actions par jour

Compass Diversified (codi) - Modèle d'entreprise: canaux

Commerce de bourse publique (NASDAQ)

Symbole de ticker: codi

Plate-forme de trading	Échange	Volume de trading (moyen)
Nasdaq	Système de marché national	198 456 actions par jour (à partir de janvier 2024)

Site Web de relations avec les investisseurs

Domaine Web: www.compassdiversified.com

• Téléchargements de présentation des investisseurs
• Archives de classement de la SEC
• Accès au rapport annuel

Présentations de la conférence financière

Conférence	Fréquence	Participation
Conférence industrielle de Baird	Annuel	Présentation de gestion
Conférence d'investissement Stephens	Semestriel	Discussions sur les investisseurs

Rapports de bénéfices trimestriels

Mécanisme de rapport: SEC Formulaire 10-Q et 10-K

Période de rapport	Revenu	Revenu net
Q4 2023	222,4 millions de dollars	27,6 millions de dollars

Réseaux d'investisseurs institutionnels

Propriété institutionnelle: 34,6% (à partir de janvier 2024)

Les principaux investisseurs institutionnels	Partage	Pourcentage
BlackRock Inc.	2,3 millions d'actions	8.7%
Groupe d'avant-garde	1,9 million d'actions	7.2%

Compass Diversified (codi) - Modèle d'entreprise: segments de clientèle

Investisseurs institutionnels

Depuis le quatrième trimestre 2023, Compass Diversified a rapporté l'investisseur institutionnel suivant profile:

Type d'investisseur	Pourcentage de propriété	Valeur d'investissement totale
Hedge funds	24.3%	186,5 millions de dollars
Fonds de pension	18.7%	143,2 millions de dollars
Sociétés de gestion des investissements	16.5%	126,4 millions de dollars

Investisseurs individuels à haute nette

Les caractéristiques du segment des investisseurs à forte valeur à haute teneur en codi:

• Attribution moyenne du portefeuille: 3,5% à 5,2%
• Montant d'investissement médian: 750 000 $
• Motivations d'investissement primaires:
  • Rendement en dividende cohérent
  • Exposition à un portefeuille diversifié

Fonds d'investissement axés sur les dividendes

Dividendes Investment Fund Engagement Metrics:

Catégorie de fonds	Nombre de fonds	Investissement total
Fonds axés sur le revenu	47	312,6 millions de dollars
Fonds de croissance des dividendes	33	224,8 millions de dollars

Sociétés de gestion de portefeuille

Analyse du segment des sociétés de gestion du portefeuille:

• Total des entreprises utilisant codi: 82
• Plage d'allocation du portefeuille moyen: 2,1% - 4,7%
• Stratégies d'investissement typiques:
  • Diversification du portefeuille équilibré
  • Exposition aux actions gérées par le risque

Investisseurs en actions à long terme

Données du segment des investisseurs à long terme:

Horizon d'investissement	Compte d'investisseurs	Période de conservation moyenne
3-5 ans	1,247	4,2 ans
5-10 ans	623	7,6 ans

Compass Diversified (codi) - Modèle d'entreprise: Structure des coûts

Frais d'acquisition et de transaction

Pour l'exercice 2023, Compass Diversified a déclaré des dépenses totales liées à l'acquisition de 7,3 millions de dollars. Répartition des coûts de transaction:

Catégorie de coûts	Montant ($)
Frais juridiques	2,100,000
Frais de diligence raisonnable	1,850,000
Frais de banque d'investissement	2,350,000
Autres frais de transaction	1,000,000

Dépenses opérationnelles de la société de portefeuille

Dépenses opérationnelles pour les sociétés de portefeuille en 2023:

• Coûts opérationnels totaux: 156,4 millions de dollars
• Dépenses de fabrication: 62,5 millions de dollars
• Gestion de la chaîne d'approvisionnement: 28,3 millions de dollars
• Infrastructure technologique: 15,7 millions de dollars
• Dépenses liées aux employés: 49,9 millions de dollars

Frais de gestion et de conseil

Structure des frais de gestion pour 2023:

Type de frais	Montant ($)
Frais de gestion de la base	22,500,000
Frais de conseil basés sur la performance	8,750,000
Frais de conseil du conseil d'administration	3,200,000

Compliance et dépenses réglementaires

Coûts liés à la conformité pour 2023:

• Total des dépenses de conformité réglementaire: 4,6 millions de dollars
• Frais d'audit externe: 1,2 million de dollars
• Infrastructure de conformité interne: 2,1 millions de dollars
• Coûts de rapport réglementaire: 1,3 million de dollars

Investissements de recherche et de diligence raisonnable

Dépenses de recherche et de diligence raisonnable pour 2023:

Catégorie de recherche	Montant ($)
Étude de marché	1,750,000
Analyse des opportunités d'investissement	2,300,000
Évaluation technologique	1,450,000
Planification stratégique	1,100,000

Compass Diversified (CODI) - Modèle d'entreprise: sources de revenus

Revenu de dividendes des sociétés de portefeuille

Depuis le quatrième trimestre 2023, Compass Diversified a généré des revenus de dividendes à partir de son portefeuille de neuf entreprises dans divers secteurs. Le revenu total de dividendes pour 2023 était de 69,4 millions de dollars.

Compagnie de portefeuille	Secteur	Contribution des dividendes
Ergobaby	Produits pour bébés	8,2 millions de dollars
Circuits avancés	Fabrication d'électronique	7,5 millions de dollars
Sterno	Équipement de services alimentaires	6,8 millions de dollars

Appréciation du capital des investissements commerciaux

En 2023, Compass Diversified a signalé une appréciation totale de la valeur du portefeuille de 42,3 millions de dollars, avec des contributions clés de:

• Ergobaby: augmentation de valeur de 12,5 millions de dollars
• 5.11 Tactique: 9,7 millions de dollars Appréciation de la valeur
• Circuits avancés: croissance de la valeur de 8,2 millions de dollars

Frais de gestion des opérations de portefeuille

Les frais de gestion pour 2023 ont totalisé 18,6 millions de dollars, dérivé de la gestion active des sociétés de portefeuille.

Source des frais de gestion	Montant
Gestion directe du portefeuille	15,3 millions de dollars
Conseil opérationnel	3,3 millions de dollars

Vente potentielle des enjeux de la société de portefeuille

En 2023, Compass Diversified a réalisé 87,2 millions de dollars des désinvestissements partiels et complets des sociétés de portefeuille.

• Vente partielle de pieu de Sterno: 22,5 millions de dollars
• Désinvestissement complet d'une société de portefeuille sans nom: 64,7 millions de dollars

Intérêt et revenu de placement

Les intérêts et les revenus de placement pour 2023 sont atteints 12,9 millions de dollars, généré à partir de réserves de trésorerie et d'instruments financiers.

Source de revenu	Montant
Intérêt de réserve de trésorerie	8,6 millions de dollars
Instruments d'investissement	4,3 millions de dollars

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.