“The Compass Group,” as we refer to it, is comprised of two separate, independent business entities that work closely together: Compass Group Management LLC and Compass Diversified Holdings (NYSE: CODI). Compass Group Management LLC is the external manager of CODI. Compass Group Management LLC manages the day-to-day business and operations of Compass Diversified Holdings (NYSE: CODI), a publicly traded holding company. CODI seeks to enhance shareholder value through the ownership of North American middle market businesses in the niche industrial and branded consumer sectors.
As a result of our management of CODI, we have access to substantial financial resources committed to the acquisition and management of middle market businesses. Upon completion of an acquisition, we immediately begin to work with the acquired company’s management team to identify the most critical and time sensitive needs and opportunities and to address them aggressively.
Unlike private equity firms who seek acquisition financing on a transaction by transaction basis, our relationship with CODI allows for the efficient and quick consummation of transactions on its behalf, without financing contingencies. In addition, companies acquired by CODI have ongoing access to substantial growth capital. Finally, CODI’s ownership perspective as a holding company is not impacted by artificial timing criteria such as fund life. Rather, we continuously work with management of CODI’s subsidiary companies to evaluate strategic alternatives and assess the appropriate individual course of action for each of those companies, without regard to external and unrelated factors.