A limited liability company, regulated as a direct participation program
Manager: CNL Strategic Capital Management, LLC
Sub-Manager: Levine Leichtman Strategic Capital, LLC
Maximum Offering Size
Up to $1.1 billion
Net Asset Value (NAV)2
Class FA: $26.40
Class A: $26.25
Class T: $26.33
Class D: $26.11
Class I: $26.33
Published Net Asset Value (NAV)
Offering Price Per Share3
Class A: $28.69
Class T: $27.64
Class D: $26.11
Class I: $26.33
Share Pricing Frequency3
Annualized Distribution Rate4
Class A: 4.35%
Class T: 3.61%
Class D: 4.30%
Class I: 4.74%
Share Subscription Procedure
Monthly escrow sweep
United States, with the opportunity for limited international investments
Long-term growth and income
Declared weekly and paid monthly
Limited Share Repurchase Program5
Once implemented, quarterly share repurchases will be at the prior month’s NAV for each share class
The board of directors intends to consider liquidity event options within six years from the termination of the public offering. Shares should only be purchased as a long-term investment.
Financial Suitability Standards
$250,000 net worth or $70,000 net worth and $70,000 annual gross income (excluding home, furnishings and personal automobiles). 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, TN and VT. See the Suitability Standards section of the prospectus.
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 Oct. 31, 2018. Asset valuations are fair value estimates dependent on market conditions and management opinions and do not represent the amount an investor would receive now or at any time in the future.
3 Effective as of Nov. 23, 2018. 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 as of Nov. 16, 2018. The distribution rate shown does not represent the total return of CNL Strategic Capital. The annualized distribution rates shown are calculated per share class by annualizing the current weekly cash distributions declared per share class and divided by the public offering price (POP) per share as of the same date. There can be no assurance as to the amount or timing of any such future distributions or that the stated distribution rate will be achieved. Distributions in the chart above represent the weekly distribution amount. Distributions are at the discretion of the board of directors and are not guaranteed in frequency or amount. Due to the high levels of investment costs and fees incurred during the fund’s initial phase, distributions will not be fully covered by cash flows from operating activities. As of September 30, 2018, approximately 97.5 percent of total distributions declared were sourced from net investment income with the remaining 2.5 percent sourced from offering proceeds. Net investment income includes 17.7 percent expense support as a source for total distributions. Distribution amounts and composition of coverage will vary among share classes and the actual distribution composition will not be known until the audited Form 10K is filed. CNL Strategic Capital is obligated to repay expense support to the managers over several years, which will reduce future income available for distributions; distributions from sources other than operating income may lower overall returns.
5 Beginning no later than March 2019, and at the discretion of the board of directors, CNL Strategic Capital intends to commence a quarterly share repurchase program. If implemented, the total amount of repurchases will be limited to an aggregate of net asset value of 2.5 percent per quarter and 10 percent per year, and will include numerous restrictions that limit an investor’s ability to sell their shares. The share repurchase program may be suspended, modified or terminated by the board of directors at any time.