CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, has closed on a $10 million investment in Resolution Economics, a specialty consulting firm that provides services to law firms and corporations in labor and employment and commercial litigation matters.
CNL Strategic Capital is co-investing in ResEcon with LLCP Lower Middle Market Fund L.P., an institutional fund and affiliate of Levine Leichtman Strategic Capital LLC, the sub-manager of CNL Strategic Capital.
ResEcon is the fifth company in CNL Strategic Capital’s portfolio and marks its third acquisition in the last six months.
ResEcon is headquarted in Los Angeles with offices in New York, Chicago and Washington, D.C., and its clients include the top 100 law firms and Fortune 500 companies, as well as government entities.
CNL Strategic Capital said that the U.S. market for labor and employment law litigation consulting service “has potential for continued growth due to an increase in labor and employment filings, increased adoption of economic consultants, and the increasing complexity of cases due to the proliferation of data and technology.” The company believes “these trends, coupled with recent social movements (pay equity, equal pay for equal work, #MeToo, etc.), will continue to support the increasing demand for the types of services ResEcon provides.”
CNL Strategic Capital seeks to acquire controlling equity stakes in combination with loan positions in what it deems as durable and growing middle-market businesses. The company is externally managed by CNL Strategic Capital Management and Levine Leichtman Strategic Capital. As of the third quarter of 2019, the company’s investment portfolio had a fair value of $130.3 million.
The company launched its first private offering in February 2018 and issued approximately 3.3 million Class FA shares for total proceeds of approximately $81.7 million. The company’s public offering was declared effective in March 2018. In April 2019, the company launched another private offering of up to $50 million of Class FA shares.