Compass Diversified straddles line between private equity and conglomerate

FINANCE: Seeks companies with moat

Compass Diversified buys and sells companies, yet it’s not a private equity firm.

It’s publicly traded (NYSE: CODI), yet it’s not a conglomerate.

“It’s not really private equity. It’s not a corporate conglomerate. It’s somewhere in between,” Chief Executive Elias Sabo told the Business Journal during an hour-long interview. “We’ve heard people say we’re like Berkshire Hathaway and it’s an incredible compliment, but we’re not there yet,” Chief Operating Officer Pat Maciariello added.

Compass is the owner of 10 middle-market companies, including Irvine-based retailer and tactical gear maker 5.11 Inc., which has filed to go public, and Newport Beach’s Lugano Diamonds & Jewelry Inc.,