CNL Strategic Capital primarily seeks to acquire and grow durable, middle-market businesses. Each investment opportunity will be considered independently; however, the intent will be to focus on businesses that share the following characteristics:

• Revenues between $15 million – $250 million
• Demonstrated ability to generate consistent levels of cash flow through different economic cycles
• Durable and growing businesses
• Market leaders with differentiated products or services that offer a clear and sustainable competitive advantage
• Strong management teams whose meaningful ownership creates alignment with all stakeholders.

A distinctive factor in our approach is the controlling stakes in the equity and debt of private middle-market business allowing for financial flexibility. Focusing on a unique dual structure approach provides an opportunity for income and long-term capital appreciation.

There is no assurance the stated objectives will be met. CNL Strategic Capital may pursue acquisition opportunities that do not meet all the criteria stated above.

Distributions paid are not solely based upon performance. Distributions payments are not guaranteed in frequency or amount. Distributions may be funded from net investment income, offering proceeds and borrowings, as well as, in significant part, reimbursable expense support and fee deferrals; the latter three will reduce future cash available for distributions and be dilutive to shareholders. In addition, temporary waivers or expense reimbursements that may be subject to reimbursement to the adviser, or its affiliates may have a smoothing effect on NAV per share and/or distribution payments.