Highlights:
- As of Sept. 30, 2026, CNL Strategic Capital’s portfolio consisted of equity and debt investments in 18 portfolio companies and had approximately $1.6 billion in total assets, compared with approximately $1.5 billion as of Dec. 31, 2025.
- For the nine months ended Sept. 30, 2026, the Company recognized a net change in unrealized appreciation on investments of approximately $89.9 million, including unrealized foreign currency gain and had total investment income of approximately $67.7 million. That compares with a net change in unrealized appreciation on investments of approximately $83.4 million, including unrealized foreign currency gain, and total investment income of approximately $60.6 million in the first nine months of 2025.
- The annualized return since inception based on net asset value (NAV) and through Sept. 30, 2026, was approximately 11.1% for Class FA shares, 10.1% for Class A shares, 9.2% for Class T shares, 9.6% for Class D shares, 10.1% for Class I shares and 12.1% for Class S shares.1 These returns are prior to any applicable sales load and assume shareholders reinvested their distributions.
- For the nine months ended Sept. 30, 2026, CNL Strategic Capital received approximately $125.8 million in net offering proceeds, including approximately $17.9 million received through the distribution reinvestment plan. Since beginning operations in February 2018 through Sept. 30, 2026, CNL Strategic Capital raised approximately $1.4 billion, including $86.0 million received through the distribution reinvestment plan.
Cash distributions declared net of distributions reinvested during the periods presented were funded from the following sources (in thousands):
| Nine Months Ended Sept. 30, | |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | ||||||||||||||||||||
| Amount | Percentage2 | Amount | Percentage2 | ||||||||||||||||||
| Net investment income before expense support (reimbursement) | $ | 16,614 | 103.1 % | $ | 13,453 | 85.7 % | |||||||||||||||
| Expense support (reimbursement) | 13 | 0.1 | 1,017 | 6.5 | |||||||||||||||||
| Net investment income | $ | 16,627 | 103.2 % | $ | 14,470 | 92.2 % | |||||||||||||||
| Net realized gains | ---- | ---- | $ | 1,432 | 9.1 % | ||||||||||||||||
| Cash distributions declared, net of distributions reinvested3 | $ | 16,104 | 100.0 % | $ | 15,703 | 100.0 % | |||||||||||||||
Sources of declared distributions on a GAAP basis (in thousands):
| Nine Months Ended Sept. 30, | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2026 | 2025 | ||||||||||||||
| Amount | % of Distributions Declared | Amount | % of Distributions Declared | ||||||||||||
| Net investment income4 | $ | 16,627 | 48.9 % | $ | 14,470 | 45.6 % | |||||||||
| Net realized gains | ---- | ---- | 1,432 | 4.5 | |||||||||||
| Distributions in excess of net investment income5 | 17,398 | 51.1 | 15,830 | 49.9 | |||||||||||
| Total distributions declared | $ | 34,025 | 100.0 % | $ | 31,732 | 100.0 % | |||||||||
| Class FA | Class A | Class T | Class D | Class I | Class S |
|---|---|---|---|---|---|
| 8.1% | 7.5% | 6.9% | 7.3% | 7.3% | 8.1% |
(These returns are prior to any applicable sales load and assume shareholders reinvested their distributions. These are not actual shareholder returns. Actual returns may vary materially.)
| Class FA (2/7/18-9/30/26) |
Class A (4/10/18-9/30/26) |
Class T (5/25/18-9/30/26) |
Class D (6/26/18-9/30/26) |
Class I (4/10/18-9/30/26) |
Class S (3/31/20-9/30/26) |
|---|---|---|---|---|---|
| 11.1% | 10.1% | 9.2% | 9.6% | 10.1% | 12.1% |
(These returns are prior to any applicable sales load and assume shareholders reinvested their distributions. These are not actual shareholder returns. Actual returns may vary materially.)
1These do not represent actual shareholder returns. Total investment return is calculated for each share class as the change in the net asset value for such share class during the period and assuming all distributions are reinvested. The annualized return since inception captures the average annual performance over the return period. It is calculated as a geometric average, meaning that it captures the effects of compounding over time. Since there is no public market for the Company’s shares, terminal market value per share is assumed to be equal to net asset value per share on the last day of the period presented. The Company’s performance changes over time and currently may be different than that shown above. Past performance is no guarantee of future results. Investment performance is presented without regard to sales load that may be incurred by shareholders in the purchase of the Company’s shares. For the period from the date the first share was issued for each respective share class through Sept. 30, 2026. 2Represents percentage of cash distribution declared, net of distribution reinvested for the period presented. 3Excludes $17,921 and $16,029 of distributions reinvested pursuant to our distribution reinvestment plan during the nine months ended Sept. 30, 2026, and 2025, respectively. 4Net investment income includes Expense Reimbursement (Support) of $(13) and $(1,017) for the nine months ended Sept. 30, 2026, and 2025, respectively. 5Consists of distributions made from offering proceeds for the periods presented.
About CNL Strategic Capital
About CNL Financial Group
About Levine Leichtman Strategic Capital
This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The information in this press release may include “forward-looking statements.” These statements are based on the beliefs and assumptions of CNL Strategic Capital’s management and on the information currently available to management at the time of such statements. Forward-looking statements generally can be identified by the words “believes,” “expects,” “will,” “intends,” “plans,” “estimates” or similar expressions that indicate future events. Forward-looking statements are subject to substantial risks and uncertainties, many of which are difficult to predict and are generally beyond CNL Strategic Capital’s control. Important risks, uncertainties and factors that could cause actual results to differ materially from those in the forward-looking statements include the risks associated with the Company’s ability to pay distributions and the sources of such distribution payments, the Company’s ability to locate and make suitable investments and other risks described in the “Risk Factors” section of the Company’s Annual Report on Form 10-K and the other documents filed by the Company with the Securities and Exchange Commission.