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

Investment profile and strategy

• Structured preferred and common equity investments provide recurring cash yields, participation in partner growth, redemption premiums and contractual protections while allowing founders to retain operational control.

• Target investments are generally $25M–$100M, with a $40M–$75M sweet spot; criteria include historical free cash flow above $5M and limited senior leverage.

• Partner distributions adjust annually based on revenue or gross-profit performance, subject to collars generally ranging from ±5% to ±8%.

• Investment highlights cite an existing portfolio baseline cash yield of ~12%, a payout ratio below 65% and a 16% compounded annual return on exited investments.

Portfolio and partner health

• 26 active partners; investments in 49 partners since inception, with 60+ follow-on investments and $2.1B in current invested capital.

• Invested capital is 84% in US-based companies and 16% in Canadian companies; 81% is preferred equity and 19% common equity.

• Industry exposure: 49% business services, 21% industrial, 19% consumer products/services and 10% consumer financial.

• Of 26 partners, nine had ECR above 2.0x, four were below 1.0x and five were in the 1.0x–1.2x range in Q3 2026.

• From Q2 to Q3 2026, 20 partners had no ECR-range change, four declined, one increased and one new partner was added.

Deployment and realized returns

• More than $3.3B invested across 49 partners and 100+ tranches since inception; cumulative partner distributions exceeded $1.8B and exit proceeds exceeded $1B.

• Gross capital invested averaged ~$311M annually in 2021–2025; $265.1M was invested through 2026 to date.

• Exited or fully written-down investments generated $673.3M in total returns, a 65% return on invested capital and a 16% aggregate IRR.

• Historical preferred-equity resets were positive in most years, with one negative reset across 17 years; resets increase distributions with partner performance.