Alaris Corporate Finance

Alaris Corporate Finance, headquartered in Calgary, Alberta, operates as a private alternative credit provider, primarily serving lower and middle-market businesses in North America. Unlike traditional lenders, Alaris structures its financing as royalties on top-line revenue, effectively becoming a long-term financial partner rather than a simple creditor. This distinctive model aligns Alaris’s success with the performance of its partner companies. The firm’s core business revolves around providing capital to established, profitable businesses seeking growth capital, recapitalizations, or management buyouts. Alaris focuses on companies with proven business models, strong management teams, and predictable revenue streams. Their investment thesis centers on the belief that these types of businesses are underserved by traditional capital markets, creating an opportunity for Alaris to offer a more flexible and customized financing solution. Instead of fixed interest payments and rigid amortization schedules common in traditional debt, Alaris receives a percentage of the partner company’s gross revenue. This royalty structure offers several benefits to the businesses they finance. It alleviates the pressure of fixed payments, especially during economic downturns or periods of slower growth, allowing the business to focus on operations and strategic initiatives. It also provides alignment of interests, incentivizing Alaris to support the long-term success and growth of its partner companies. Alaris typically invests in businesses across diverse industries, including manufacturing, business services, technology, and healthcare. This diversification helps mitigate risk and allows Alaris to leverage its expertise across various sectors. The size of their investments generally ranges from $10 million to $50 million, although they may consider larger investments in certain circumstances. A key aspect of Alaris’s approach is its active engagement with its partner companies. They don’t simply provide capital and step aside. Instead, they maintain close relationships with management teams, offering strategic advice and support to help drive growth and improve operational efficiency. This collaborative approach fosters a mutually beneficial partnership built on trust and shared goals. However, the royalty-based model also presents unique considerations for both Alaris and its partner companies. Predicting future revenue streams is crucial for structuring the royalty payments, requiring careful due diligence and financial modeling. For the partner company, relinquishing a portion of revenue requires a strong belief in Alaris’s value-add and a willingness to share the upside of their business. In recent years, Alaris has navigated fluctuating economic conditions and evolving capital markets. They have actively managed their portfolio, focusing on strengthening relationships with existing partner companies and selectively pursuing new investment opportunities. Their long-term perspective and commitment to the royalty-based model have allowed them to weather market volatility and continue to provide a valuable financing alternative for lower and middle-market businesses. The firm’s future success hinges on its ability to continue identifying and partnering with high-quality businesses and effectively managing its portfolio of royalty streams.