Compass Diversified Holdings (CODI) is a publicly traded investment holding company based in Westport, Connecticut. Known for its unique approach to investing, CODI acquires and manages a diverse portfolio of middle-market businesses across various industries. The company operates under a permanent capital structure, providing it with the flexibility to make long-term investments and support its subsidiaries' growth.
The primary objective of Compass Diversified Holdings is to generate cash flow and capital appreciation through its ownership of subsidiary businesses. CODI typically targets companies with proven track records, strong management teams, and stable cash flows. This approach allows CODI to invest in businesses with growth potential and contribute to their development through strategic guidance and operational support.
CODI's portfolio spans a range of industries, including manufacturing, distribution, consumer goods, and business services. Some of its subsidiaries include 5.11, Advanced Circuits, Arnold Magnetic Technologies, and Liberty Safe, among others. Each subsidiary operates independently, allowing CODI to diversify its investments and reduce risk exposure.
Compass Diversified Holdings has a distinctive governance model that emphasizes operational autonomy for its subsidiaries. While CODI provides strategic oversight and financial support, it allows each subsidiary to maintain its unique identity and management structure. This approach is designed to foster innovation and entrepreneurial spirit within each business unit.