CNL Strategic Capital Acquires Majority Stake in IFPG

Alongside a significant equity investment, CNL revised its management agreement and declared new shareholder distributions.

June 25, 2025

Strategic Acquisition Expands Portfolio

CNL Strategic Capital just made a major move. On June 23, the firm acquired a 91% indirect ownership stake in International Franchise Professionals Group (IFPG), adding a new name to its portfolio through a $113.5 million investment. The deal was structured across two subsidiaries: $90.5 million in equity through IFPG Strategic Capital EquityCo, LLC and $23 million in senior secured debt via IFPG Strategic Capital DebtCo, LLC.

Management Agreement Updates Bring Operational Changes

This wasn’t the only update. On the same day, CNL entered into a new management agreement with CNL Strategic Capital Management, LLC. The agreement shifts how the Total Return Incentive Fee is accrued—from quarterly to monthly—aligning more closely with how those returns are actually earned. The contract runs through February 2026, with annual renewals thereafter.

Net Asset Value and Repurchase Program Adjustments

A few days earlier, on June 20, CNL’s board approved updates tied to the company’s net asset value (NAV), upcoming share repurchases, and public offering prices. NAV increased across all share classes for the month ending May 31, driven by higher fair values in twelve out of sixteen portfolio companies. Only four saw a dip. Class S shares had the highest NAV per share at $41.28, up from $41.04 the previous month. Total NAV stood at roughly $1.31 billion, with total assets landing around $1.33 billion.

Those changes feed directly into the company’s repurchase program. Shareholders looking to redeem on June 30 will do so at the May 31 NAV. For investors coming in, new public offering prices take effect June 30 as well. The updates include:

• Class A: $39.92


• Class T: $38.30


• Class D: $36.25


• Class I: $37.01

Selling commissions and dealer manager fees have also been recalibrated.

Performance Metrics Reflect Growth

Performance remained strong across most share classes. Class FA (no sales load) posted a 4.2% return year-to-date and 12.4% over the past 12 months. Since inception in 2018, total return has reached 114.1%. Class S showed similar momentum, with a 4.3% YTD return and a long-term annualized return of 12.2%. The firm calculates these returns assuming all distributions are reinvested, and reminds shareholders that past performance doesn’t guarantee future results.

Distributions Announced for All Share Classes

Distributions are also continuing. The board declared monthly cash distributions for all common share classes, with a July 25 record date and July 28 payment date. Most shares, including Class A, Class FA, Class I, and Class S, are set to receive $0.104167 per share. Class T and Class D shares are set at slightly lower rates, at $0.083333 and $0.093750, respectively.

Breakdown of Distribution Sources

CNL also broke down how these distributions were funded. Over the first five months of 2025, the company declared $17.4 million in distributions. Of that, 44.4% came from net investment income, while 55.6% was classified as excess distributions, largely sourced from offering proceeds. Net of reinvested distributions, $8.7 million was paid out in cash. Most of that— 88.9% —was covered by net investment income, which included $5.8 million in expense support reimbursements from CNL’s manager and sub-manager.

These updates—spanning acquisitions, performance, distributions, and governance—signal continued activity across the firm. The combination of portfolio expansion and structural refinement gives investors a closer look at how CNL is managing growth, performance, and shareholder value.