CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, has closed on a $12.5 million investment in Transition Finance Strategies LLC, which does business under the name Blue Ridge ESOP Associates. This is the sixth company in CNL Strategic Capital’s portfolio.
CNL Strategic Capital is co-investing in Blue Ridge 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, as well as the existing owners and management team.
Established in 1988, Blue Ridge is a provider of technology services for the administration and recordkeeping of employee stock ownership plans and associated 401(k) plans. The company serves a client base of more than 700 ESOP and 401(k) plan sponsors with in excess of 175,000 plan participants.
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 fourth quarter of 2019, the company’s investment portfolio had a fair value of $144.2 million.