CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, announced its operating results for the six months ended June 30, 2023.
As of June 30, 2023, CNL Strategic Capital’s portfolio consisted of equity and debt investments in 12 portfolio companies and had approximately $865.4 million in total assets, compared with approximately $732.5 million as of Dec. 31, 2022.
For the six months ended June 30, 2023, CNL says the company recognized a net change in unrealized appreciation on investments of approximately $12.6 million and had total investment income of approximately $27.8 million. That compares with a net change in unrealized appreciation on investments of $16.7 million and total investment income of approximately $21.9 million during the first six months of 2022.
The cumulative total investment return based on net asset value since inception and through June 30, 2023, was approximately 76.2% for Class FA shares, 64.9% for Class A shares, 55.9% for Class T shares, 57.0% for Class D shares, 66.7% for Class I shares and 48.7% for Class S shares. These returns are prior to any applicable sales load and assume shareholders reinvested their distributions.
For the six months ended June 30, 2023, CNL Strategic Capital received approximately $134.0 million in net offering proceeds, including approximately $5.6 million received through the distribution reinvestment plan. Since beginning operations in February 2018 until June 30, 2023, CNL Strategic Capital says they have raised approximately $783.5 million, including $21.0 million received through the distribution reinvestment plan.
CNL Strategic Capital acquires controlling equity stakes in combination with loan positions in middle-market businesses. The company is externally managed by CNL Strategic Capital Management LLC and Levine Leichtman Strategic Capital LLC. The company has raised more than $490 million in investor equity via two public offerings, the first of which was declared effective in March 2018. One Nov. 1, 2021, CNL Strategic Capital launched a follow-on public offering of up to $1.1 billion.