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  5. AD.UN: Could you outline the differences and similarities between these two. [Alaris Equity Partners Income Trust]
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Q: Could you outline the differences and similarities between these two. Would owning both overlap in any way? Would you recommend owning both for an income generating portfolio?
Thanks
Jeff
Asked by JEFF on July 09, 2024
5i Research Answer:

These are entirely different investments. AD.UN are trust unit shares so it passes on income directly to shareholders and will pay out a high amount of cash flows. AD.UN is a PE firm specializing in management buyouts, growth capital, lower & middle market, later stage, industry consolidation, and mature investments. It offers royalty capital directly to private companies in exchange for a high rate of return and some equity incentives. GSY is in the consumer finance space offering non-prime leasing and lending services directly to the consumer. We do not see any overlap between the two. We think GSY offers nice growth potential while is also supported through a 2.6% yield providing income as well. We are fine owning both in an income portfolio.