CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, has closed on an approximately $10 million investment in Milton Industries, a manufacturer of tools and accessories for pneumatic applications used in vehicle service, aerospace and defense, and agriculture.
Milton is the fourth company in CNL Strategic Capital’s portfolio and marks its second new investment in less than six months.
CNL Strategic Capital is co-investing in Milton 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.
Milton was founded in 1943 and is headquartered in Chicago. The company has more than 1,600 products including couplers, gauges, chucks, blow guns, filters, regulators and lubricators.
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, LLC 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.