Unlike private equity investors, CODI’s permanent capital structure enables us to invest in people, processes, culture, and growth opportunities that drive transformational change.
01
Strategic
Acquisitions
- Disciplined approach to capital deployment
- Freedom from “moral hazards” sometimes faced by those operating under a fixed fund life
- Diversified subsidiary businesses offsets market conditions faced by holding companies focused on a specific product or service
- Seasoned investment team with experience across economic cycles
- Decentralized, regional business development efforts lead by multiple deal partners provides broad coverage
- Proven identification of leading management teams
- Ability to provide both the debt and equity financing for every transaction, creating a better alignment of interests
- Buyer of choice due to certainty of financing and speed of closure
02
Active
Management
- Potential for extended ownership periods
- Permanent capital available to support long-term value creation through investment in:
- Lasting infrastructure
- Organic growth and add-on acquisitions
- Management teams
- Conservative, low leverage approach allows focus to be on growth
- Lower cost of capital as part of portfolio versus financing each company separately
- Professionalization of subsidiaries at scale
- Strong internal culture of accountability and governance, including regular reporting
- Commitment to being a responsible partner and corporate citizen
03
Opportunistic
Divestitures
- Flexible model allows for opportunistic exits that optimize and prioritize outcomes for all stakeholders
- No limitations on holding periods for subsidiaries
- Strong industry relationships
- Diverse range of opportunistic divestitures generating realized gains in excess of $1 billion
Case Studies
Over the lifespan of our investments, we partner with our management teams to grow their businesses and maximize value for all stakeholders, including our owners and shareholders.
Investment Criteria
At CODI, we believe the best way to create value is through an alignment of interests and long-term partnership approach. We work closely with management teams to leverage our deep sector expertise, operational experience and global resources to accelerate our subsidiaries’ growth.
With more than two decades of experience, our team possesses the know-how to navigate the complexities of acquiring family-owned businesses, take-private transactions, and non-core divisions of larger companies.
Profile of A Potential CODI Subsidiary:
Leading industrial or branded consumer company headquartered in North America
Highly defensible position in the markets it serves and with customers
Operating in industry with favorable long-term macroeconomic trends
Strong management team, either currently in place or previously identified
Preferred transaction size range of $200 million to $800 million
Positive and stable EBITDA of at least $20 million per annum
Strategic Add-ons:
Strategic fit within a subsidiary company
Ability to generate meaningful synergies
Transaction size range is typically smaller than that of platform investments