CNL Strategic Capital Reports Asset Growth

The firm announced a rise in net asset value and adjusted its public offering prices amid portfolio gains.

January 27, 2025

CNL Strategic Capital Sees Asset Growth and Portfolio Appreciation

CNL Strategic Capital, LLC reported an increase in net asset value (NAV) for December 2024, highlighting a strengthening financial position supported by portfolio appreciation. The company, which invests in privately held businesses, disclosed that its total NAV reached approximately $1.23 billion, marking an increase from previous months. The uptick was largely driven by rising valuations in ten of its sixteen portfolio companies, while six investments declined in value.

The firm’s asset growth was accompanied by adjustments to its public offering prices for various share classes, effective January 31, 2025. These new prices align with the updated NAV calculations and factor in distribution reinvestment options.

Share Price and Distribution Updates

CNL Strategic Capital’s board approved updated share prices for its ongoing public offering:

• Class A:$38.99 per share


• Class T:$37.50 per share


• Class D:$35.42 per share


• Class I:$36.12 per share

These pricing adjustments include applicable selling commissions and dealer manager fees.

Additionally, the company declared cash distributions for February 2025, ensuring regular returns to shareholders:

• Class FA: $0.1042 per share


• Class A: $0.1042 per share


• Class T: $0.0833 per share


• Class D: $0.0938 per share


• Class I: $0.1042 per share


• Class S: $0.1042 per share

These distributions, scheduled for payment on February 27, 2025, reflect CNL Strategic Capital’s ongoing commitment to returning capital to investors.

Investment Performance and Returns

The company’s investment performance remained strong across multiple time horizons. Year-to-date (YTD) returns through December 31, 2024, ranged from 4.0% to 11.2% depending on the share class.

Long-term performance highlights include:

• Class FA (no sales load): 105.5% cumulative total return since inception


• Class A (no sales load): 89.5% cumulative total return since inception


• Class I: 91.1% cumulative total return since inception


• Class T (no sales load): 77.2% cumulative total return since inception


• Class D: 79.8% cumulative total return since inception

Performance varied based on sales loads, with net returns significantly impacted by upfront fees. Class A shares, for example, saw a 10.2% YTD return without sales loads, compared to just 0.9% when factoring in these costs.

Sources of Distributions and Future Considerations

CNL Strategic Capital outlined the sources of its 2024 distributions:

• Net investment income: 55.6% of total distributions


• Distributions in excess of net investment income: 44.4% of total distributions

This composition is in line with previous years and underscores a mix of capital sources beyond direct earnings.

The company also acknowledged market uncertainties that could impact portfolio valuations and emphasized that past performance does not guarantee future results. Moving forward, CNL Strategic Capital remains focused on acquiring and managing middle-market businesses while optimizing returns for shareholders.

Market Outlook and Strategic Direction

As the company moves into 2025, it remains committed to expanding its investment portfolio while maintaining financial discipline. With total assets nearing $1.29 billion, CNL Strategic Capital is well-positioned to continue its strategy of investing in businesses with strong growth potential.

Investors can access additional details on NAV adjustments, share pricing, and distribution schedules via the company’s website or investor relations channels. The latest updates reinforce the firm’s ability to deliver consistent returns while navigating evolving market conditions.