Compass Diversified cuts external manager base fee to 1.25% from 2% under amended agreement
CODI•CODI•CODI•CODI•The agreement also adds a performance-based cash award targeting 0.125% of average adjusted net assets, tied to total shareholder return and EBITDA.
Compass Diversified said estimated 2027 management fees are expected to fall by about $19 million to $22 million versus the prior formula.
Compass Diversified amended its external management agreement, cutting the base management fee to 1.25% of adjusted net assets from 2%.
The new tiered fee schedule starts Jan. 1, 2027, and 2027 base management fees are capped at $30 million.
The existing incentive fee is being replaced by a 0.125% share-alignment cash award, intended to build manager share ownership.
