Public Offering Highlights
Unique Investment Structure
A limited liability company, regulated as a direct participation program, taxed as a partnership
Manager: CNL Strategic Capital Management, LLC
Sub-Manager: Levine Leichtman Strategic Capital, LLC
Individual and institutional investors
Maximum Offering Size
Up to $1.1 billion
Net Asset Value (NAV)2
Class A: $30.92
Class T: $30.73
Class D: $30.35
Class I: $31.28
Published Net Asset Value (NAV)
Offering Price Per Share3
Class A: $33.79
Class T: $32.26
Class D: $30.35
Class I: $31.28
Share Pricing Frequency3
Annualized Distribution Rate4
Class A: 3.69%
Class T: 3.09%
Class D: 3.70%
Class I: 3.99%
Share Subscription Procedure
Monthly escrow sweep
Primarily in the United States
Long-term growth and income
Declared and paid monthly. Sources of funds for distribution varies.
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.
One consolidated Schedule K-1; best efforts to provide no later than mid-March
The board of directors intends to consider liquidity event options within six years from the termination of the 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 requirements. 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
Class FA: $32.40
Annualized Distribution Rate
Based on NAV4
Class FA: 3.85%
Class S Highlights 8
Class S: $32.56
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 June 30, 2021. Asset valuations will be estimates of fair value 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 July 27, 2021. The offering price will be adjusted monthly, in connection with the valuation, to ensure shares are sold at a value that, after deducting commissions and dealer manager fees, is equal to NAV.
4 Distributions declared through July 20, 2021. 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 June 30, 2021, distributions paid were 4.9% from net investment income before expense support, 65.1% from reimbursable expense support and 30.0% from offering proceeds.. For the years ended Dec. 31, 2020, 2019 and 2018, distributions were paid from multiple sources and these sources included net investment income before expense support of 42.2%, 61.7% and 85.2%, reimbursable expense support of 33.2%, 23.5% and 11.1%, and offering proceeds of 24.6%, 14.8% and 3.7%, respectively. 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. CNL Strategic Capital is obligated to repay expense support to the managers over several years, which will reduce future income available for distributions. Distribution amounts and composition of coverage will vary among share classes and the actual fiscal year distribution composition will not be known until the audited Form 10-K is filed. For the year-to-date period ended June 30, 2021, CNL Strategic Capital’s per share net investment income (with the support of expense waivers) was $0.55 for Class FA, $0.28 for Class A, $0.03 for Class T, $0.15 for Class D and $0.32 for Class I. For details, please see CNL Strategic Capital’s prospectus which has been supplemented with the most current financial reports.
5 The share repurchase program offers redemptions limited to direct reinvestment program proceeds, or 2.5% of CNL Strategic Capital’s aggregate net asset value per calendar quarter and up to 10% of the aggregate net asset value for the prior four quarters. The program may be suspended, modified or terminated by the board of directors 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.