CNL Strategic Capital Launches $1.1 Billion Follow-On Offering
CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, has launched its $1.1 billion follow-on offering.
CNL Strategic Capital LLC, a publicly registered non-traded limited liability company, has launched its $1.1 billion follow-on offering.
Similar to its initial public offering, the follow-on is comprised of $1 billion of Class A, Class T, Class D and Class I shares, as well as $100 million in reinvestment plan shares. The company plans to maintain its investment strategy of purchasing “durable and growing” companies for its portfolio.
The initial public offering raised approximately $264.7 million from the sale of common shares. As of June 30, 2021, the company had invested in eight businesses, consisting of approximately $217.2 million of equity investments and approximately $115 million of debt investments.
Class A shares are currently priced at $33.66 each and include a maximum 6.0 percent selling commission and 2.5 percent dealer manager fee.
Class T shares are priced at $32.18 and include a maximum 3.0 percent selling commission, a 1.75 percent dealer manager fee, and a 1.0 percent annual distribution and shareholder servicing fee paid to the managing dealer.
Class D shares are priced at $30.27 and have no selling commissions or dealer manager fees, and include a 0.50 percent annual distribution and shareholder servicing fee.
Class I shares are priced at $31.18 and have no selling commission, dealer manager fees, or annual distribution and shareholder servicing fees.
Class A and Class T shares are available for purchase through different distribution channels, while Class D and Class I shares are only available to investors purchasing through certain registered investment advisers and fee-based broker-dealer or advisory platforms. The shares have an initial minimum purchase amount of $5,000.
CNL Securities Corp. serves as the managing dealer in this offering.
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.
