Public Offering Highlights
Unique Investment Structure
A limited liability company, regulated as a direct participation program, taxed as a partnership
Investment Managers1
Manager: CNL Strategic Capital Management, LLC
Sub-Manager: Levine Leichtman Strategic Capital, LLC
Investor Profile
Individual and institutional investors
Maximum Offering Size
Up to $1.1 billion
Net Asset Value (NAV)2
Class A: $34.91
Class T: $34.96
Class D: $34.65
Class I: $35.39
Published Net Asset Value
Monthly
Offering Price Per Share3
Class A: $38.15
Class T: $36.70
Class D: $34.65
Class I: $35.39
Share Pricing Frequency3
Monthly
Minimum Investment
$5,000
Annualized Distribution Rate4
Class A: 3.27%
Class T: 2.72%
Class D: 3.24%
Class I: 3.53%
Share Subscription Procedure
Monthly escrow sweep
Geographic Focus
Primarily in the United States
Investment Objective
Long-term appreciation with current income, while protecting invested capital. Distributions not guaranteed in frequency or amount. Distributions will be paid from net investment income, offering proceeds, borrowings or reimbursable expense support; the latter three will reduce future cash available for distributions and be dilutive to future shareholders.
Distributions4
Declared and paid monthly. Sources of funds for distribution vary. Distributions are not guaranteed in frequency or amount.
Limited Share Repurchase Program5
Quarterly share repurchase program is based on net asset value. There will be numerous restrictions that limit an investor’s ability to sell their shares. The board of directors may suspend or modify the program at any time.
Tax Reporting
One consolidated Schedule K-1; best efforts to provide no later than mid-March
Exit Strategy6
Liquidity event options intended to be considered by the board of directors on or before Nov. 1, 2027 (which is within six years from the termination of the initial public offering). The exit date can vary. Shares should only be purchased as a long-term investment.
Financial Suitability Standards
See the Suitability Standards section of the prospectus or your firm’s policies. Some states may have additional standards. These states include AL, CA, IA, ID, KS, KY, MA, ME, MO, ND, NE, NJ, NM, OH, OK, OR, PA, PR, TN and VT.
Class FA Highlights7
NAV2
Class FA: $38.60
Annualized Distribution Rate
Based on NAV4
Class FA: 3.23%
Class S Highlights 8
NAV2
Class S: $39.14
There is no assurance the stated objectives will be met. CNL Strategic Capital pays substantial fees and expenses, which will reduce the amount of cash available for acquisitions or distributions to shareholders. Read the prospectus for complete details on the risks, fees and expenses.
1 Each an investment adviser registered with the U.S. Securities and Exchange Commission.
2 Effective as of Oct. 31, 2024. Asset valuations will be estimates of fair value, which is calculated from CNL Strategic Capital’s financial statements prepared in accordance with GAAP, and do not represent the amount an investor would receive now or at any time in the future. CNL Strategic Capital’s valuation is inherently subjective, and the NAV may not accurately reflect the actual price at which its assets could be liquidated. The realized value of shares will be dependent upon market conditions that are beyond anyone’s ability to control or predict.
3 Effective as of Nov. 27, 2024. The offering price will be adjusted monthly, in connection with the valuation, so shares are sold at a value that, after deducting commissions and dealer manager fees, is equal to NAV.
4 The annualized distribution rate is calculated by annualizing the distributions paid and dividing by the current price per share. For the year-to-date period ended Oct. 31, 2024, total distributions declared were 57.8% from net investment income before expense support, 0.0% from expense support and 42.2% from offering proceeds. For the year ended Dec. 31, 2023, total distributions declared were paid from multiple sources and these sources included net investment income before expense support of 76.9%, reimbursable expense support of 0.0% and offering proceeds of 23.1%. Distributions paid are not solely based upon performance. Distributions are not guaranteed in frequency or amount. Distributions from sources other than income can lower overall returns and will be dilutive to later investors. Subject to certain conditions being met, CNL Strategic Capital is obligated to repay expense support to the managers over several years, which would reduce future income available for distributions. For the year-to-date period ended Oct. 31, 2024, CNL Strategic Capital’s per share net investment income was $1.10 for Class FA, $0.49 for Class A, $0.29 for Class T, $0.41 for Class D and $0.50 for Class I. For details, please see CNL Strategic Capital’s prospectus which has been supplemented with the most current financial reports. It’s important to understand the distribution breakdown over the years, please see the Risk Factors section of this piece and the prospectus.
5 Repurchase program offers redemptions up to 2.5% of CNL Strategic Capital’s aggregate NAV per calendar quarter and up to 10% of aggregate NAV for the prior four quarters. The board may suspend or modify at any time.
6 The board of directors is under no obligation to pursue or complete any particular liquidity event during this time frame or otherwise.
7 FA share’s second tranche, beginning on April 18, 2019, closed to new investors on Dec. 31, 2019 and the third tranche beginning on July 11, 2019 closed to new investors on March 31, 2020.
8 Class S shares commenced operations on Jan. 21, 2020 and closed to new investors on Dec. 31, 2020.
