Alaris Equity Partners Income Trust reported significant revenue growth and made strategic follow-on investments totaling USD 29.5 million while actively repaying senior debt and seeking to enhance cash flow stability.

Target Information

Alaris Equity Partners Income Trust (the "Trust"), headquartered in Calgary, Alberta, is a unique investment vehicle that provides alternative financing to private companies in exchange for distributions, dividends, or interest. The Trust primarily invests in a diverse portfolio of partners across various sectors to generate stable cash flows for its unitholders. Alaris follows an approach that emphasizes risk management and a focus on providing consistent financial returns.

As of the second quarter of 2022, Alaris reported financial results showcasing significant year-over-year growth, with total revenue reaching CAD 56.5 million and cash generated from operations amounting to CAD 44.4 million, representing increases of 62% and 51% respectively compared to Q2 2021. This performance is largely attributed to substantial contributions from its partners, most notably the Deferred Distributions from investments that had previously been on hold.

Industry Overview

The alternative financing sector in Canada has seen substantial growth, particularly as private companies look for innovative ways to fund their operations outside traditional banking channels. The aftermath of the COVID-19 pandemic has further ex