Corporate Capital Trust II to Suspend Offering to New Investors

Corporate Capital Trust II, a publicly registered non-traded business development company advised by CNL and sub-advised by KKR, intends to suspend its offering to new investors effective January 10, 2018.

The board of trustees will also begin exploring changes to Corporate Capital Trust II’s advisory structure proposed by its current investment sub-adviser, KKR Credit Advisors.

The company may join other BDCs in a new strategic partnership between KKR and FS Investments, as reported by The DI Wire today. KKR and FS Investments intend to create the largest BDC platform on the market, with approximately $18 billion in combined assets under management.

Corporate Capital Trust, which was advised by CNL and sub-advised by KKR until its recent listing on the New York Stock Exchange, and Corporate Capital Trust II would comprise a portion of this newly created platform, subject to shareholder approval.

“We believe being advised by this new joint venture between KKR and FS Investments would provide investors in Corporate Capital Trust II with access to additional resources and depth, and we are pleased to pursue this opportunity for Corporate Capital Trust II’s shareholders,” said James Seneff, the executive chairman of CNL. “We have enjoyed our close relationship with KKR and know they will continue to foster the trust we have developed with our investors as they move forward with this new venture.”

CNL and KKR formed a relationship in the summer of 2010, and have since launched two non-traded BDCs that have a combined $4.6 billion in assets under management.

Corporate Capital Trust II invests in the debt of privately owned U.S. companies, with a focus on originated transactions sourced through the networks of its advisors. The offering was declared effective by the SEC in October 2015 and has raised $114 million in investor equity since inception.

As of the third quarter 2017, the company’s portfolio was comprised of investments in 71 companies totaling $149.1 million, according to Summit Investment Research.

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