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
Distribution payments are not guaranteed in frequency or amount. Distributions may be funded from net investment income, offering proceeds and borrowings, as well as, in significant part, reimbursable expense support and fee deferrals; the latter three will reduce future cash available for distributions and be dilutive to shareholders. In addition, temporary waivers or expense reimbursements that may be subject to reimbursement to the adviser, or its affiliates may have a smoothing effect on NAV per share and/or distribution payments.
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?
Investors focused solely on public companies miss out on 98% of the middle-market universe.6 But, historically, many non-accredited individual investors were locked out due to high-net-worth requirements and high minimum investments.
Why Private Equity?
Investors focused solely on public companies miss out on 98% of the middle-market universe.6 But, historically, many non-accredited individual investors were locked out due to high-net-worth requirements and high minimum investments.
U.S Public
Middle-Market Companies6
U.S Private
Middle-Market Companies6
.
U.S Private
Middle-Market Companies
.
.
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