The CNL Strategic Capital Difference
Our differentiated private equity strategy may help diversify traditional client portfolios.1
Seeks controlling ownership of private companies2
Potential for long-term growth and monthly income
Invests outside of typical stocks and bonds
Seeks to Mitigate Risk1
Unlike some forms of private equity, we focus on established middle-market businesses whose management teams are aligned through equity ownership. That means we don’t target investments in startups, turnarounds or distressed companies.
Fund Leverage3
average business age4
Average management
team ownership5
.
Why Private Equity?6
Historically, private equity has experienced strong performance for institutional and high-net-worth investors. But many non-accredited individual investors were locked out due to high-net-worth requirements and high minimum investments.
State Street GX Private Equity Index vs Other Indices
Growth of $10,000
(December 2008 – December 2023)
For illustrative purposes only and is not intended to represent the results of an actual investment.
The private equity index shown consists of institutional buyout funds, venture capital and private debt, which may be highly leveraged and has high credit risk. The State Street Index above is not a proxy for the private equity asset class. This index displays only a fraction of the global private equity transactions. The benchmark indices are not investments, but inform on macro market trends. Past performance is not indicative of future results.
Indices do not address investment costs. You cannot invest directly in an index. There are significant differences between public and private equities, which include but are not limited to, the following: public equities can provide liquidity and greater access to company information and private equities have a longer time horizon and are considered illiquid. Data represents a variety of broad-based and recognizable indices and is intended to show performance in different asset classes. Risk/reward profile for each asset class varies significantly. SOURCE: Bloomberg and State Street GX Private Equity Index, as of Dec. 31, 2023. This is the most current data available as of the publication date. (Refer to the dataset in the appendix for additional detail.)
Selective Investment Criteria
Through its U.S. offices and relationships, our sub-manager, Levine Leichtman, reviews more than 1,000 investment opportunities annually. Fewer than 1% make it into our portfolio. The select few that do tend to have the following characteristics:7
Durable, middle-market businesses
Strong financial profiles
More insulated from economic downturns