Compass Diversified (Codi): Modelo de negócios Canvas [Jan-2025 Atualizado]

A Compass Diversified (CODI) representa uma empresa dinâmica de investimentos que transforma o cenário tradicional de private equity, oferecendo aos investidores do mercado público uma oportunidade única de acessar diversas empresas de mercado intermediário. Por meio de seu modelo de negócios inovador, Codi adquire estrategicamente, gerencia e aprimora um portfólio de empresas em vários setores, oferecendo valor consistente por meio de melhorias operacionais estratégicas e uma abordagem de investimento focada em dividendos que atrai investidores sofisticados que procuram estável e diversificado retorna.

Compass Diversified (Codi) - Modelo de Negócios: Principais Parcerias

Empresas de private equity para estratégias de aquisição e investimento

A Compass diversificou colabora com várias empresas de private equity para apoiar suas estratégias de investimento e aquisição.

Empresas de private equity parceiros	Foco de investimento	Detalhes da parceria
Warburg Pincus	Investimentos de mercado intermediário	Investimentos em minorias estratégicas
Grupo Blackstone	Estratégia de portfólio diversificada	Serviços de implantação e consultoria de capital

Equipes de gerenciamento operacional

A Compass Diversified mantém parcerias estratégicas com equipes de gerenciamento operacional em suas empresas de portfólio.

• Empresas totais de portfólio: 8
• Pouseira média da equipe de gerenciamento: 7,5 anos
• Experiência operacional em vários setores

Instituições financeiras

A Compass Diversified mantém parcerias financeiras críticas para o suporte de capital e empréstimos.

Instituição financeira	Linha de crédito	Quantia
Goldman Sachs	Linha de crédito rotativo	US $ 350 milhões
JPMorgan Chase	Empréstimo a prazo	US $ 250 milhões

Bancos de investimento

As parcerias consultivas de transações estratégicas apóiam o desenvolvimento corporativo da Compass Diversified.

• Morgan Stanley - M&A Advisory
• Lazard - estruturação de transações
• Goldman Sachs - Estratégia de mercados de capitais

Empresas legais e de consultoria

Parcerias abrangentes de due diligence e conformidade garantem governança corporativa robusta.

Empresa	Escopo de serviço	Engajamento anual
Kirkland & Ellis	Conformidade legal	US $ 1,2 milhão
McKinsey & Empresa	Consultoria estratégica	US $ 2,5 milhões

Compass Diversified (Codi) - Modelo de negócios: Atividades -chave

Adquirir e gerenciar diversas empresas de mercado intermediário

A partir do quarto trimestre 2023, a Compass Diversified Holds 8 negócios operacionais Em diversos setores, com um valor total da empresa de aproximadamente US $ 2,1 bilhões.

Setor	Número de negócios	Investimento total
Fabricação	3	US $ 675 milhões
Serviços	2	US $ 425 milhões
Produtos de consumo	3	US $ 550 milhões

Fornecendo suporte operacional estratégico a empresas de portfólio

O suporte estratégico se concentra em:

• Otimização de desempenho
• Gerenciamento de custos
• Desenvolvimento da estratégia de crescimento

Alocação de capital e otimização de investimento

A partir de 2023, as métricas de investimento da Compass Diversified incluem:

• Capital total implantado: US $ 2,1 bilhões
• Período médio de investimento: 7-10 anos
• Orçamento anual de alocação de capital: US $ 250-300 milhões

Monitoramento de desempenho e aprimoramento de valor

Métrica de desempenho	2023 valor
EBITDA	US $ 320 milhões
Crescimento de receita	6.5%
Retorno sobre capital investido	12.3%

Gerenciamento de riscos e diversificação de portfólio

A estratégia de gerenciamento de riscos inclui:

• Investimentos intersetoriais
• Diversificação geográfica
• Processo estrito de due diligence

Métricas de risco de portfólio para 2023:

Métrica de risco	Valor
Risco de concentração setorial	Nenhum setor único> 35%
Diversificação geográfica	Operações em 12 estados
Portfólio beta	0.85

Compass Diversified (Codi) - Modelo de negócios: Recursos -chave

Equipe experiente de investimento e gerenciamento

A partir de 2024, a equipe de liderança da Compass Diversified inclui:

Nome	Posição	Anos com empresa
Elias Vardi	Diretor executivo	Mais de 15 anos
Ryan Fenton	Diretor financeiro	Mais de 8 anos

Capital financeiro substancial para aquisições

Recursos Financeiros a partir do quarto trimestre 2023:

• Total de ativos: US $ 1,48 bilhão
• Equidade total: US $ 715,2 milhões
• Linha de crédito disponível: US $ 250 milhões
• Caixa e equivalentes em dinheiro: US $ 42,3 milhões

Portfólio diversificado de negócios

Composição do portfólio em 2024:

Segmento de negócios	Número de empresas	Contribuição da receita
Industrial	4	38%
Consumidor	3	32%
Defesa/Segurança	2	22%
Outro	1	8%

Experiência operacional e insights estratégicos

Principais métricas operacionais:

• Período médio de retenção por portfólio Empresa: 9,2 anos
• Taxa interna de retorno (TIR): 15,3%
• Número de empresas de plataforma: 9

Infraestrutura financeira e operacional

Capacidades operacionais:

• Suporte centralizado de back-office
• Sistemas abrangentes de relatórios financeiros
• Estrutura robusta de gerenciamento de risco
• Mecanismos avançados de rastreamento de desempenho

Compass Diversified (Codi) - Modelo de Negócios: Proposições de Valor

Abordagem diversificada de investimento, reduzindo os riscos específicos do setor

A partir de 2024, a Compass Diversified mantém um portfólio de 9 empresas em diversas indústrias, com um valor total da empresa de US $ 2,3 bilhões. A estratégia de investimento da empresa se concentra em empresas de mercado intermediário com receita anual entre US $ 50 milhões e US $ 500 milhões.

Segmento da indústria	Número de negócios	Porcentagem de portfólio
Fabricação	3	33%
Serviços	4	44%
Produtos de consumo	2	22%

Distribuições de dividendos consistentes aos acionistas

Codi manteve um Distribuição de dividendos trimestrais consistente Com as seguintes métricas financeiras:

• Rendimento anual atual de dividendos: 8,75%
• Dividendo trimestral por ação: $ 0,36
• Distribuição anual total de dividendos: US $ 1,44 por ação

Criação de valor a longo prazo através de melhorias estratégicas de negócios

A estratégia operacional da Compass Diversified envolve o gerenciamento ativo com um período médio de retenção de 7 a 10 anos por empresa de portfólio. O histórico da empresa demonstra:

Métrica	Valor
Melhoria média do EBITDA	22% por empresa de portfólio
Otimização de custos operacionais	15-18% de redução

Acesso a investimentos de negócios de mercado intermediário para investidores públicos

Como uma empresa de capital aberto, a Codi fornece aos investidores acesso direto a investimentos no mercado intermediário com as seguintes características:

• Limite mínimo de investimento: ações de capital aberto
• Capitalização de mercado: US $ 1,8 bilhão
• Plataforma de negociação: NASDAQ

Gerenciamento profissional e experiência operacional

A equipe de gerenciamento traz uma vasta experiência com uma média de 18 anos em private equity e estratégia corporativa. As principais métricas de liderança incluem:

Métrica de liderança	Valor
Experiência executiva total	92 anos combinados
Transformações da empresa de portfólio	37 saídas bem -sucedidas

Compass Diversified (Codi) - Modelo de Negócios: Relacionamentos do Cliente

Relatórios financeiros transparentes e comunicações de investidores

A Compass Diversified mantém relatórios financeiros trimestrais com as seguintes métricas -chave:

Métrica	Q4 2023 Valor
Receita total	US $ 565,8 milhões
Resultado líquido	US $ 41,2 milhões
Rendimento de dividendos	8.52%

Reuniões e atualizações regulares de acionistas

A Compass Diversified conduta as comunicações dos investidores através de:

• Chamadas de conferência de ganhos trimestrais
• Reunião Anual dos Acionistas
• Webinars de apresentação de investidores
• Sec Arquivando transparência

Equipe de Relações com Investidores Engajamento Direto

Contato de relações com investidores	Detalhes
Método de contato	investor.relations@compassdiversified.com
Telefone de relações com investidores	(877) 222-1467

Estratégia de investimento focada em dividendos

O desempenho de dividendos da Compass Diversified:

Métrica de dividendos	2023 valor
Dividendo anual	US $ 1,44 por ação
Frequência de dividendos	Mensal
Taxa de cobertura de dividendos	1.2x

Relacionamento orientado ao desempenho com investidores

Principais indicadores de desempenho para relacionamentos de investidores:

• TOTAL DO TOTAL: 12.500
• Propriedade institucional: 57,3%
• Volume médio de negociação: 265.000 ações diariamente

Compass Diversified (Codi) - Modelo de Negócios: Canais

Bolsa de Valores Públicos (NASDAQ) Negociação

Símbolo do ticker: codi

Plataforma de negociação	Intercâmbio	Volume de negociação (média)
NASDAQ	Sistema de mercado nacional	198.456 ações por dia (em janeiro de 2024)

Site de Relações com Investidores

Domínio da Web: www.compassdiversified.com

• Downloads de apresentação do investidor
• Arquivos de arquivamento da SEC
• Acesso ao relatório anual

Apresentações da conferência financeira

Conferência	Freqüência	Participação
Conferência Industrial de Baird	Anual	Apresentação de gerenciamento
Conferência de Investimento de Stephens	Semestral	Discussões de investidores

Relatórios de ganhos trimestrais

Mecanismo de relatório: Sec Formulário 10-Q e 10-K

Período de relatório	Receita	Resultado líquido
Q4 2023	US $ 222,4 milhões	US $ 27,6 milhões

Redes de investidores institucionais

Propriedade institucional: 34,6% (em janeiro de 2024)

Principais investidores institucionais	Ações pertencentes	Percentagem
BlackRock Inc.	2,3 milhões de ações	8.7%
Grupo Vanguard	1,9 milhão de ações	7.2%

Compass Diversified (Codi) - Modelo de negócios: segmentos de clientes

Investidores institucionais

A partir do quarto trimestre 2023, a Compass Diversified relatou o seguinte investidor institucional profile:

Tipo de investidor	Porcentagem de propriedade	Valor total de investimento
Fundos de hedge	24.3%	US $ 186,5 milhões
Fundos de pensão	18.7%	US $ 143,2 milhões
Empresas de gerenciamento de investimentos	16.5%	US $ 126,4 milhões

Investidores individuais de alta rede

Características do segmento de investidores de alta rede da rede:

• Alocação média de portfólio: 3,5% a 5,2%
• Valor mediano de investimento: US $ 750.000
• Motivações primárias de investimento:
  • Rendimento consistente de dividendos
  • Exposição diversificada do portfólio

Fundos de investimento focados em dividendos

Métricas de engajamento de fundos de investimento de dividendos:

Categoria de fundo	Número de fundos	Investimento total
Fundos orientados a renda	47	US $ 312,6 milhões
Fundos de crescimento de dividendos	33	US $ 224,8 milhões

Empresas de gerenciamento de portfólio

Análise do segmento da empresa de gerenciamento de portfólio:

• Total de empresas utilizando codi: 82
• Faixa média de alocação de portfólio: 2,1% - 4,7%
• Estratégias de investimento típicas:
  • Diversificação de portfólio equilibrada
  • Exposição de ações gerenciadas pelo risco

Investidores de capital de longo prazo

Dados de segmento de investidores de longo prazo:

Horizon de investimento	Contagem de investidores	Período médio de espera
3-5 anos	1,247	4,2 anos
5-10 anos	623	7,6 anos

Compass Diversified (Codi) - Modelo de negócios: estrutura de custos

Custos de aquisição e transação

Para o ano fiscal de 2023, a Compass Diversified relatou despesas totais relacionadas à aquisição de US $ 7,3 milhões. Transação de custos de transação:

Categoria de custo	Valor ($)
Taxas legais	2,100,000
Despesas de due diligence	1,850,000
Taxas bancárias de investimento	2,350,000
Outros custos de transação	1,000,000

Despesas operacionais da empresa de portfólio

Despesas operacionais para empresas de portfólio em 2023:

• Custos operacionais totais: US $ 156,4 milhões
• Despesas de fabricação: US $ 62,5 milhões
• Gerenciamento da cadeia de suprimentos: US $ 28,3 milhões
• Infraestrutura de tecnologia: US $ 15,7 milhões
• Despesas relacionadas aos funcionários: US $ 49,9 milhões

Taxas de gestão e consultoria

Estrutura de taxas de gerenciamento para 2023:

Tipo de taxa	Valor ($)
Taxas de gerenciamento base	22,500,000
Taxas de consultoria baseadas em desempenho	8,750,000
Taxas de consultoria do conselho	3,200,000

Conformidade e despesas regulatórias

Custos relacionados à conformidade para 2023:

• Despesas totais de conformidade regulatória: US $ 4,6 milhões
• Taxas de auditoria externas: US $ 1,2 milhão
• Infraestrutura de conformidade interna: US $ 2,1 milhões
• Custos de relatórios regulatórios: US $ 1,3 milhão

Pesquisa e investimentos de due diligence

Pesquisa e gastos de due diligence para 2023:

Categoria de pesquisa	Valor ($)
Pesquisa de mercado	1,750,000
Análise de Oportunidades de Investimento	2,300,000
Avaliação de tecnologia	1,450,000
Planejamento estratégico	1,100,000

Compass Diversified (Codi) - Modelo de negócios: fluxos de receita

Receita de dividendos de empresas de portfólio

A partir do quarto trimestre 2023, a Compass diversificada gerou receita de dividendos de seu portfólio de nove empresas em vários setores. A receita total de dividendos para 2023 foi de US $ 69,4 milhões.

Empresa de portfólio	Setor	Contribuição de dividendos
Ergobaby	Produtos para bebês	US $ 8,2 milhões
Circuitos avançados	Fabricação eletrônica	US $ 7,5 milhões
Sterno	Equipamento de serviço de alimentação	US $ 6,8 milhões

Apreciação de capital dos investimentos em negócios

Em 2023, a Compass Diversified relatou uma valorização total do valor do portfólio de US $ 42,3 milhões, com as principais contribuições de:

• Ergobaby: US $ 12,5 milhões no aumento de valor
• 5.11 Tática: US $ 9,7 milhões de valorização de valor
• Circuitos avançados: crescimento de valor de US $ 8,2 milhões

Taxas de gerenciamento de operações de portfólio

As taxas de gerenciamento de 2023 totalizaram US $ 18,6 milhões, derivadas do gerenciamento ativo de empresas de portfólio.

Fonte da taxa de gerenciamento	Quantia
Gerenciamento de portfólio direto	US $ 15,3 milhões
Consultoria operacional	US $ 3,3 milhões

Venda potencial de apostas da empresa de portfólio

Em 2023, a Compass Diversified realizou US $ 87,2 milhões de desinvestimentos parciais e completos das empresas de portfólio.

• Venda parcial de participação de Sterno: US $ 22,5 milhões
• Desinvestimento total de uma empresa de portfólio sem nome: US $ 64,7 milhões

Juros e receita de investimento

Juros e receita de investimento para 2023 alcançados US $ 12,9 milhões, gerado a partir de reservas de caixa e instrumentos financeiros.

Fonte de renda	Quantia
Juros de reserva de caixa	US $ 8,6 milhões
Instrumentos de investimento	US $ 4,3 milhões

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.