Highly Selective Acquistion Criteria3
Through its four U.S. offices and more than 4,000 relationships, our sub-manager, Levine Leichtman, generates approximately 1,500 potential investment opportunities annually. The select few private companies that make it into the portfolio tend to have annual revenues between $15m and $250m.
Durable, middle-
market businesses
Strong financial
profiles
More insulated from
economic downturns
Alignment with management through equity ownership
Diversification Across Industries4
Our emphasis on risk mitigation extends to the industries where we invest. We target non-cyclical sectors that are less correlated to the U.S. economy.
| Industry | % | |
|---|---|---|
Portfolio FAQs
Why do owners sell you their quality companies?
- The reasons vary but commonly include owners who are looking to retire or cash out, and business units that are looking to spin off from a larger company.
Do you operate as a fund of funds?
- No, we take a direct investment approach to owning a controlling interest in select private middle-market companies, and we intend to be actively involved with the businesses we acquire2.
How does CNL Strategic Capital add value to portfolio companies?
We leverage decades of experience to help management teams increase revenue, enhance supply chains and decrease costs. We may also help portfolio companies grow through add-on acquisitions.
What is your valuation process?5
- Valuations are reviewed by the audit committee, and recommendations are made to the board of directors monthly.
- We have retained an independent valuation firm to assist in determining the fair values of assets for which market prices are not readily available.
- Full details on the determination of net asset value can be found in the prospectus.
