Compass Diversified (CODI) said Monday it has amended its management agreement with external manager Compass Group Management, lowering management fees and replacing its existing incentive fee structure.
The company said the base management fee will decline from 2% to 1.25% of adjusted net assets on the first $3 billion, with lower rates applied above that level, effective Jan. 1, 2027.
Compass Diversified said 2027 management fees are expected to be $19 million to $22 million lower than under the current formula.
The amended agreement replaces the incentive fee with a share alignment award and a performance-based award tied to total shareholder return and EBITDA performance.
Compass Diversified said it also reaffirmed its 2026 outlook, citing continued strong performance from its subsidiaries.
Comments