CODI Profile
Compass Diversified Holdings is a private equity firm specializing in a wide array of investment strategies including add-on acquisitions, buyouts, industry consolidation, recapitalization, and late-stage investments within the North American market. Founded in 2005 and headquartered in Westport, Connecticut, with an additional office in Costa Mesa, California, the firm focuses on acquiring controlling ownership interests in niche industrial and branded consumer companies.
The firm's investment portfolio spans diverse sectors such as manufacturing, distribution, consumer products, business services, safety and security, electronic components, food, and foodservice. Compass Diversified targets companies with robust financial profiles, typically seeking investments ranging from $100 million to $800 million, with target EBITDA (earnings before interest, taxes, depreciation, and amortization) between $15 million to $80 million.
In its investment approach, Compass Diversified emphasizes establishing majority stakes in its portfolio companies, thereby enabling strategic control and operational oversight to enhance growth and profitability. The firm utilizes its balance sheet to deploy capital and actively participates in additional platform acquisitions to strengthen its market position.
Known for its long-term investment horizon, Compass Diversified typically holds its investments for five to seven years, leveraging its extensive industry expertise and network to drive value creation. The firm's commitment to fostering sustainable growth and operational excellence underscores its reputation as a leading player in the private equity sector, dedicated to maximizing returns for its investors while supporting the growth ambitions of its portfolio companies.
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