Compass Diversified amends management services pact, restructures fee

Compass Diversified (CODI) Holdings announced that on January 15 it entered into a Seventh Amended and Restated Management Services Agreement with Compass Group Management The Amendment, commencing in the first quarter beginning on January 1 restructures the management fee under the existing Management Services Agreement to consist of a base management fee and an incentive management fee. Pursuant to the Amendment, the base management fee will be 2.0% of the Company’s adjusted net assets when the adjusted net assets are less than or equal to $3.5B the Initial Threshold Fee, plus 1.25% of the amount of adjusted net assets exceeding $3.5 billion when the adjusted net assets are more than $3.5 billion but less than $10B or .5% of the Company’s adjusted net assets when the adjusted net assets are $10B or more. The incentive management fee will be 0.25% of the amount of adjusted net assets exceeding $3.5 B , when the adjusted net assets are more than $3.5B but less than $10B. The incentive management fee is only earned if the Company’s annualized internal rate of return on equity for the trailing three years exceeds 12%. Such incentive management fee is also subject to approval by the Compensation Committee of the Company’s Board of Directors.