CNL Strategic Capital Announces Operating Results for Second Quarter 2024
12 Agosto 2024 - 3:45PM
CNL Strategic Capital, LLC (CNL Strategic Capital or the Company)
seeks to provide current income and long-term appreciation to
investors by acquiring controlling equity stakes in combination
with loan positions in privately owned
middle-market businesses. The Company announced its operating
results for the six months ended June 30, 2024.
Highlights:
- As of June 30, 2024, CNL Strategic Capital’s portfolio
consisted of equity and debt investments in 15 portfolio companies
and had approximately $1.1 billion in total assets, compared with
approximately $1.0 billion as of Dec. 31, 2023.
- For the six months ended June 30, 2024, the Company recognized
a net change in unrealized appreciation on investments of
approximately $35.2 million and had total investment income of
approximately $32.1 million. That compares with a net change in
unrealized appreciation on investments of $12.6 million and total
investment income of approximately $27.8 million during the first
six months of 2023.
- The cumulative total investment return based on net asset value
(NAV) since inception and through June 30, 2024, was approximately
93.7% for Class FA shares, 79.4% for Class A shares, 68.4% for
Class T shares, 70.5% for Class D shares, 81.3% for Class I shares
and 63.6% for Class S shares.1 These returns are prior to any
applicable sales load and assume shareholders reinvested their
distributions.
- For the six months ended June 30, 2024, CNL Strategic Capital
received approximately $116.3 million in net offering proceeds,
including approximately $8.4 million received through the
distribution reinvestment plan. Since beginning operations in
February 2018 until June 30, 2024, CNL Strategic Capital raised
approximately $1.0 billion, including $36.6 million received
through the distribution reinvestment plan.
Cash distributions declared net of distributions reinvested were
funded from the following sources (in thousands):
| |
Six Months Ended June 30, |
| |
2024 |
|
2023 |
| |
Amount |
|
Percentage2 |
|
Amount |
|
Percentage2 |
| Net investment income before
Expense Support (reimbursement) |
$ |
9,634 |
|
|
100.1 |
% |
|
$ |
12,156 |
|
|
147.7 |
% |
| Expense Support
(reimbursement) |
|
353 |
|
|
3.7 |
|
|
|
(644) |
|
|
(7.8) |
|
| Net investment income |
$ |
9,987 |
|
|
103.8 |
% |
|
$ |
11,512 |
|
|
139.9 |
% |
| Cash distributions declared,
net of distributions reinvested 3 |
$ |
9,621 |
|
|
100.0 |
% |
|
$ |
8,230 |
|
|
100.0 |
% |
Sources of declared distributions on a GAAP basis (in
thousands):
| |
Six Months Ended June 30, |
| |
2024 |
|
2023 |
| |
Amount |
|
% of Distributions
Declared |
|
Amount |
|
% of Distributions Declared |
| Net investment income4 |
$ |
9,987 |
|
|
55.4 |
% |
|
$ |
11,512 |
|
|
83.4 |
% |
| Distributions in excess of net
investment income5 |
8,034 |
|
|
44.6 |
|
|
2,284 |
|
|
16.6 |
|
| Total distributions
declared |
$ |
18,021 |
|
|
100.0 |
% |
|
$ |
13,796 |
|
|
100.0 |
% |
Total investment return based on net asset value (NAV) after
incentive fees per share for the six months ended June 30,
2024:1
|
Class FA |
Class A |
Class T |
Class D |
Class I |
Class S |
|
4.8% |
4.4% |
3.9% |
4.3% |
4.3% |
4.8% |
(These returns are prior to any applicable sales load and assume
shareholders reinvested their distributions. These are not actual
shareholder returns. Actual returns may vary materially.)
Cumulative total investment return based on NAV after sales fees
since inception and through the six months ended June 30,
2024:1
|
Class FA (2/7/18-6/30/24) |
Class A(4/10/18-6/30/24) |
Class T(5/25/18-6/30/24) |
Class D(6/26/18-6/30/24) |
Class I(4/10/18-6/30/24) |
Class S(3/31/20-6/30/24) |
|
93.7% |
79.4% |
68.4% |
70.5% |
81.3% |
63.6% |
(These returns are prior to any applicable sales load and assume
shareholders reinvested their distributions. These are not actual
shareholder returns. Actual returns may vary materially.)
1This is not shareholder returns. Total investment return is
calculated for each share class as the change in the net asset
value for such share class during the period and assuming all
distributions are reinvested. Amounts are not annualized and are
not representative of total return as calculated for purposes of
the total return incentive fee. Since there is no public market for
the Company’s shares, terminal market value per share is assumed to
be equal to net asset value per share on the last day of the period
presented. The Company’s performance changes over time and
currently may be different than that shown above. Past performance
is no guarantee of future results. Investment performance is
presented without regard to sales load that may be incurred by
shareholders in the purchase of the Company's shares. For the
period from the date the first share was issued for each respective
share class through the six months ended June 30, 2024. 2Represents
percentage of cash distribution declared, net of distribution
reinvested for the period presented. 3Excludes $8,400 and $5,566 of
distributions reinvested pursuant to our distribution reinvestment
plan during the six months ended June 30, 2024, and 2023,
respectively. 4Net investment income includes Expense Support
(reimbursement), net of $353 and $(644) for the six months ended
June 30, 2024, and 2023, respectively. 5Consists of distributions
made from offering proceeds for the periods presented.
About CNL Strategic Capital CNL Strategic
Capital is a publicly registered, non-traded limited liability
Company that seeks to provide current income and long-term
appreciation to individuals by acquiring controlling equity stakes
in combination with loan positions in durable and growing
middle-market businesses. The Company is externally managed by CNL
Strategic Capital Management, LLC and Levine Leichtman Strategic
Capital, LLC (LLSC). For additional information, please visit
cnlstrategiccapital.com.
About CNL Financial GroupCNL Financial Group
(CNL) is a leading private investment management firm providing
alternative investment opportunities. Since inception in 1973, CNL
and/or its affiliates have formed or acquired companies with more
than $36 billion in assets. CNL is headquartered in Orlando,
Florida. For more information, visit cnl.com.
About Levine Leichtman Strategic
CapitalLLSC is an affiliate of Levine Leichtman Capital
Partners, LLC (LLCP), a middle-market private equity firm with a
40-year track record of investing across various targeted sectors,
including Franchising & Multi-unit, Business Services,
Education & Training and Engineered Products &
Manufacturing. LLCP utilizes a differentiated Structured Private
Equity investment strategy, combining debt and equity capital
investments in portfolio companies. LLCP believes that by investing
in a combination of debt and equity securities, it offers
management teams growth capital in a highly tailored, flexible
investment structure that can be a more attractive alternative than
traditional private equity.
LLCP’s global team of dedicated investment professionals is led
by 10 partners who have worked at LLCP for an average of 19 years.
Since inception, LLCP has managed approximately $14.8 billion of
institutional capital across 15 investment funds and has invested
in over 100 portfolio companies. LLCP currently manages $10.2
billion of assets and has offices in Los Angeles, New York,
Chicago, Miami, London, Stockholm, Amsterdam and Frankfurt. For
additional information, please visit llcp.com.
The information in this press release may include
“forward-looking statements.” These statements are based on the
beliefs and assumptions of CNL Strategic Capital’s management and
on the information currently available to management at the time of
such statements. Forward-looking statements generally can be
identified by the words “believes,” “expects,” “intends,” “plans,”
“estimates” or similar expressions that indicate future events.
Forward-looking statements are subject to substantial risks and
uncertainties, many of which are difficult to predict and are
generally beyond CNL Strategic Capital’s control. Important risks,
uncertainties and factors that could cause actual results to differ
materially from those in the forward-looking statements include the
risks associated with the Company’s ability to pay distributions
and the sources of such distribution payments, the Company’s
ability to locate and make suitable investments and other risks
described in the “Risk Factors” section of the Company’s Annual
Report on Form 10-K and the other documents filed by the Company
with the Securities and Exchange Commission. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy securities.
###
Colleen Johnson
Senior Vice President
Marketing and Communications
CNL Financial Group
407-650-1223