Alaris Equity Partners Income Trust (AD-UN) Investor presentation summary

Business overview and strategy

• Focuses on providing structured equity capital to private businesses, targeting lower to mid-market companies for long-term income and growth.

• Offers investors access to private equity returns, diversification, enhanced yields, and liquidity through a public vehicle.

• Employs a non-control, preferred equity model, allowing founders to retain operational control and aligning interests.

• Investment approach combines equity-like returns with debt-like protections, including consent rights and remedies for defaults.

• Maintains a robust, scalable business model with low overhead and high EBITDA margins exceeding 80%.

Portfolio and investment performance

• Invested over $3.3 billion in 48 partners since inception, with $1.9 billion currently invested.

• Portfolio includes 25 active partners, with a median IRR of 19% from exited investments and a 65% total return on exits.

• 81% of capital is deployed in preferred equity, with 83% of investments in US-based companies.

• Five-year average annual gross capital invested is $311 million, with $126.1 million invested in 2026 to date.

• Historical preferred equity resets have been mostly positive, reflecting strong partner selection and income growth.

Financial highlights and metrics

• Net book value stands at $1.2 billion ($25.83 per unit), with a market capitalization of ~$1.17 billion.

• Quarterly distribution is $0.38 per unit ($1.52 annually), with a YTD payout ratio of 58%.

• Portfolio generates a baseline cash yield of 13%, with potential for incremental growth.

• Senior debt outstanding is USD $350.1 million, with a senior debt to EBITDA ratio of 2.40x (covenant 3.0x).

• Tangible net worth is CDN $1,179 million, well above the covenant of CDN $732 million.