A Highly Selective Investment Process

Evaluating private companies can be a complex process. However, we are research driven and undertake a robust due diligence process prior to a capital commitment. In fact, only a portion of all investment opportunities evaluated are ultimately funded.

Step 1: Sourcing

LLCP's team of senior investment professionals is located in New York, Chicago, Los Angeles, Charlotte, London and Miami. Through their network of more than 3,500 relationships, 1,000 opportunities were reviewed in 2020 for potential investment.

Step 2: Evaluation & Due Diligence

After a robust screening process, only a few companies are selected for capital investment.
 
Key Acquisition Attributes:

  • Recognized leaders in the industry

  • Ownership alongside engaged management

  • Attractive financial profile 

  • Durable and growing business model

Step 3: Capital Commitment

  • Capital structure customized to include appropriate proportion of controlled equity and debt positions which may help provide downside protection.

  • Financial/operating covenants established to measure performance and potentially mitigate loss.

  • While CNL Strategic Capital will own and directly control a significant percentage of the businesses, a small percentage of the businesses may be co-investments alongside other funds managed by affiliates of the sub-manager.¹

Step 4: Advice & Monitoring

  • Ongoing monitoring

  • Financial and strategic advice

  • Introduction to new business opportunities

  • Follow-on growth and acquisition capital/financing

There is no assurance the stated objectives will be met. CNL Strategic Capital may pursue acquisition opportunities that do not meet the criteria stated above. Subject to the terms of the allocation policy, the sub-manager and its affiliates may allocate opportunities to CNL Strategic Capital, to its affiliates' clients or in part as co-opportunities. A substantial portion of CNL Strategic Capital’s assets may be invested in a limited number of businesses, which would lead to less diversification and the potential for greater volatility. If CNL Strategic Capital is unable to raise substantially more funds, it will be limited in the number and type of acquisitions it may make.
¹ CNL Strategic Capital seeks acquisitions that will involve controlling equity interests; however in some situations, such as co-investment, control will be limited. Three out of eight of CNL Strategic Capital's acquisitions are co-investments as of June 30, 2021.