CNL Strategic Capital Announces Operating results for the Third Quarter 2022
Orlando, Fla., Jan. 06, 2023 (GLOBE NEWSWIRE) — CNL Strategic Capital, LLC (“CNL Strategic Capital,” the “Company” or “we”) 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 released its operating results for the nine-month period ending September 30, 2022.
Highlights:
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As of Sept. 30, 2022, CNL Strategic Capital’s portfolio consisted of equity and debt investments in 11 portfolio companies and had approximately $661.3 million in total assets, compared with approximately $514.8 million as of Dec. 31, 2021.
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The Company recorded a net increase in unrealized appreciation of investments of $27.6 millions for the nine months ending Sept. 30, 2022. Total investment income was $34.1 million. This compares to an unrealized appreciation net change of $30.3 million on investments and total investment income of $23.2 million over the first nine months in 2021.
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The cumulative total return on investment based upon net asset value (NAV), from inception to Sept. 30, 2022 was approximately 65.2%, 55.8%, Class A shares, 48.1%, Class T shares, 48.5%, Class D shares, 57.5%, Class I shares, and 39.0% Class S shares.1 These returns include any applicable sales loads and assume that shareholders have reinvested their distributions.
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CNL Strategic Capital received $136.7 million net offering proceeds in the first nine months 2022. This includes approximately $5.3 million from the distribution reinvestment program. CNL Strategic Capital raised approximately $593.1 Million between February 2018 and September 30, 2022. This includes $12.5 million through the distribution plan.
These sources (in thousands), funded cash distributions net from distributions reinvested during these periods:
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|
Nine Months ended Sept. 30, |
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|
|
2022 |
|
2021 |
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|
|
The amount |
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% of Cash Distributions Net of Reinvestment |
|
The amount |
|
% of Cash Distributions Net of Reinvestment |
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|
Net investment income before expense assistance (reimbursement). |
$ |
14,575 |
|
|
|
141.1 |
|
% |
|
$ |
7,999 |
|
|
|
100.5 |
|
% |
|
Expense support (reimbursement) |
|
(2,535 |
) |
|
|
(24.5 |
) |
% |
|
|
(1,055 |
) |
|
|
(13.3 |
) |
% |
|
Net investment income |
|
12,040 |
|
|
|
116.6 |
|
% |
|
|
6,944 |
|
|
|
87.2 |
|
% |
|
Cash distributions net distributions reinvested in excess to net investment income2 |
– |
|
|
|
– |
|
% |
|
1,016 |
|
|
|
12.8 |
|
% |
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|
Cash distributions, net of any distributions reinvested3 |
$ |
10,329 |
|
|
|
100.0 |
|
% |
|
$ |
7,960 |
|
|
|
100.0 |
|
% |
Sources of GAAP declared distributions (in thousand):
|
|
Nine Months ended Sept. 30, |
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|
|
2022 |
|
2021 |
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|
|
The amount |
|
Declared Cash Distributions: % |
|
The amount |
|
Declared Cash Distributions: % |
||||||
|
Net investment income4 |
$ |
12,040 |
|
|
76.1 |
% |
|
$ |
6,944 |
|
|
63.4 |
% |
|
Distributions exceeding net investment income2 |
3,774 |
|
|
23.9 |
% |
|
4,001 |
|
|
36.6 |
% |
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|
Total distributions declared |
$ |
15,814 |
|
|
100.0 |
% |
|
$ |
10,945 |
|
|
100.0 |
% |
Investment return calculated on the net asset (NAV) less incentive fees per share.1
|
FA Class |
Class A |
Class T |
Class D |
Class I |
Class S |
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|
7.5 |
% |
6.8 |
% |
6.7 |
% |
7.0 |
% |
6.9 |
% |
8.5 |
% |
(These returns include any applicable sales loads and assume that shareholders have reinvested their distributions. These are not shareholder returns. Actual returns These may differ materially.
Cumulative total return on investment based upon NAV after sales fees from inception through the nine months ending Sept. 30, 20221
|
FA Class |
Class A |
Class T |
Class D |
Class I |
Class S |
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|
65.2 |
% |
55.8 |
% |
48.1 |
% |
48.5 |
% |
57.5 |
% |
39.0 |
% |
(These returns include any applicable sales loads and assume that shareholders have reinvested their distributions. These These are Actual shareholder returns may differ. Actual returns could vary significantly.
1This is not about shareholder returns. The total investment return for each share class is the change in net asset value during the period, assuming that all distributions have been reinvested. The amounts are not annually adjusted and do not represent total return. 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 not indicative of future results. Investment performance is presented regardless of any sales load that shareholders may incur in purchasing Company shares. 2Consists Of Distributions made starting Offer proceeds for the current periodd. 3Excludes Our distribution reinvestment program during the nine-month end resulted in $5,485 and $2.985 in distributionsed September 30, 2022 and 2021, respectively. 4Net Investment income includes expense support reimbursements of $2,535 or $1,055 for the nine-months ended Sept. 30, 2022 and 2021, respectively.
CNL Strategic Capital
CNL Strategic Capital is an unlisted, publicly traded limited liability company that seeks to generate current income and long term appreciation for individuals. It acquires controlling equity stakes along with loans in sustainable and growing middle market businesses. CNL Strategic Capital Management, LLC, Levine Leichtman Strategic Capital, LLC, are the external managers of the Company. Visit www.amazon.com for more information cnlstrategiccapital.com.
CNL Financial Group
CNL Financial Group is a private management firm that provides real estate investment and other types of investments. CNL and its affiliates have created or acquired more than $34 Billion in assets since their inception in 1973. CNL has its headquarters in Orlando, Florida. For more information, please visit cnl.com.
About Levine Leichtman Strategic Capital
LLSC is an affiliate to Levine Leichtman Capital Partners, LLC, (LLCP), a middle market private equity firm that has a 39-year history of investing in targeted sectors such as franchising, education, and engineered products. LLCP uses a different Structured Private Equity investment strategy that combines equity capital and debt capital investments in portfolio businesses. This unique structure is less dilutive for entrepreneurs and management teams, and delivers growth and income with significantly lower risks.
LLCP’s global team of dedicated investment professionals is led by nine partners who have worked together for an average of 19 years. LLCP has managed over $13 billion worth of institutional capital through 15 investment funds. It has also invested in more 100 portfolio companies since its inception. LLCP currently has $9 billion in assets and has offices located in Los Angeles and New York, Chicago and Charlotte. Please visit www.lpp.com for additional information. 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 can be subject to significant risks and uncertainties. Many of these are beyond CNL Strategic’s control. Capital’s Control. Important risks, uncertainties, and factors that could lead to actual results being materially different In addition to the forward-looking statements, there are also the risks associated with 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 other documents filed by Company With the Securities and Exchange Commission. This press release does not constitute an offer or solicitation to buy securits.ies.
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CONTACT: Colleen Johnson Senior vice president Marketing and Communications CNL Financial Group 407-650-1223
