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Corp Capital Trust II Revises NAV, Lowers Fees and Replaces Trustee

The board of Corporate Capital Trust II, a non-traded business development company sponsored and advised by CNL Financial Group and KKR & Co., updated its net asset value per share, approved changes to its fee structure, and appointed a new board member.

The board of trustees approved a net asset value of $9.27 per share, as of February 28, 2017. The estimated NAV is based on the estimated fair value of the company’s assets less liabilities, divided by the outstanding common shares outstanding on a fully diluted basis, as of February 28, 2017. The company’s previous net asset value was $9.17 per share.

The board also approved amendments to its managing dealer agreement with CNL Securities Corp., as well as amendments to the distribution and shareholder servicing plan for the company. The company anticipates the amendments will be declared effective by the end of April 2017.

If declared effective, the ongoing distribution and shareholder servicing fee paid to the CNL Securities will be lowered from 1.25 percent per year to 1 percent per year of the net asset value per share.

Additionally, it would lower the maximum amount of sales commissions, dealer manager fees, and ongoing annual distribution and shareholder servicing fees payable to CNL Securities from 10 percent to 8.50 percent of the gross offering proceeds. It would also remove the provisions related to the company’s contingent deferred sales charge.

The company’s advisors, CNL Fund Advisors II and KKR Credit Advisors, previously agreed to pay up to 100 percent of the company’s operating expenses until March 31st, but extended the period until June 30th.

The company said that in order to maximize cash available for investment, its advisors will continue to waive all reimbursement of organizational and offering expenses until April 30, 2017.

In other company news, board trustee Erik Falk announced his retirement from KKR and submitted his resignations from the board of Corporate Capital Trust I and II. To replace Falk, Todd Builione was appointed to serve on the boards until the BDCs’ respective 2017 annual meeting of stockholders.

Builione joined KKR in 2013 and is a member of KKR and president of KKR Credit Advisors LLC. He also serves on the KKR Global Risk Committee. Prior to joining the company, Builione served as president and CEO of Highbridge Capital’s hedge fund business. He began his career at Goldman Sachs Group, where he focused on capital markets and mergers and acquisitions for financial institutions.

Builione received a bachelor’s degree from Cornell University and a juris doctor from Harvard Law School. He serves on the boards of Marshall Wace, a liquid alternatives provider; Harlem RBI, a youth development organization; the Advisory Council of Cornell University’s Dyson School of Applied Economics and Management; and Pingry School, a New Jersey prep school.

Corporate Capital Trust II was launched in October 2015 and has raised $56.9 million in investor equity since inception. The company’s portfolio is comprised of investments in 55 companies totaling $56.2 million.

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