- Compass Diversified Holdings buys controlling interests in middle market businesses, using permanent capital that allows it to unilaterally invest without a pre-determined time frame for divestiture.
- The company's two "verticals" are branded consumer businesses and niche industrial businesses. A third vertical, health care, is expected to be added in 2022's first half.
- Compass is now treated as a C-corporation for federal tax purposes rather than as a partnership. Free cash flow has replaced CAD (cash available for distribution) as its primary metric.
- The company has paid its final $.36 quarterly distribution to partners and in 2022 will begin paying a $.25 quarterly dividend to shareholders who will receive Form 1099 rather than Form K-1.
- The company does not have a Standard & Poor's credit rating and the payout, unchanged for 43 quarters, is being reduced because the company will begin paying federal income tax in 2022.
For further details see:
Dividend Sleuthing: Compass Diversified