Investment Q&A

There are a few reasons why CSU spun out its operating units recently (TOI and LMN). Firstly, to help investors value the subs better given that these entities do possess a more attractive growth profile and decent runway to compound capital. Secondly, when implementing acquisitions, some of the founders of the acquirees want to maintain an independent presence, such as in the case of TOI, which wants to be a separately traded company with a different equity currency. Lastly, the idea is also to allow investors to get more or less exposure to different operating units depending on investors' preferences. Although now being separately traded, these entities are still operating in a decentralized manner, with CSU holding the majority interest and control. We think this strategy has worked well so far for shareholders in the last two transactions.