Public Offering Highlights

Unique Investment Structure

A limited liability company, regulated as a direct participation program, taxed as a partnership

Investment Managers1

Manager: CNL Strategic Capital Management, LLC

Sub-Manager: Levine Leichtman Strategic Capital, LLC

Investor Profile

Retail and institutional investors

Maximum Offering Size

Up to $1.1 billion

Net Asset Value (NAV)2

Class A: $26.24
Class T: $26.30
Class D: $25.86
Class I: $26.50

Published Net Asset Value (NAV)

Monthly

Offering Price Per Share3

Class A: $28.68
Class T: $27.61
Class D: $25.86
Class I: $26.50

Share Pricing Frequency3

Monthly

Minimum Investment

$5,000

Annualized Distribution Rate4

Class A: 4.35%
Class T: 3.62%
Class D: 4.35%
Class I: 4.71%

Share Subscription Procedure

Monthly escrow sweep

Geographic Focus

Primarily in the United States

Investment Strategy

Long-term growth and income 

Distributions4

Declared and paid monthly. Sources of funds for distribution varies. 

Limited Share Repurchase Program5

Quarterly share repurchase program is based on net asset value. There will be numerous restrictions that limit an investor’s ability to sell their shares.

Tax Reporting

One consolidated Schedule K-1; best efforts to provide no later than mid-March

Exit Strategy

The board of directors intends to consider liquidity event options within six years from the termination of the public offering. The exit date can vary. Shares should only be purchased as a long-term investment.

Financial Suitability Standards

See the Suitability Standards section of the prospectus or your firm’s requirements. 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, PR, TN and VT.

 

Class FA Highlights7

NAV2

Class FA: $27.13

Annualized Distribution Rate
Based on NAV4

Class FA: 4.60%

Annualized Distribution Rate
Based on Offering Price4

Class FA: 4.21%

 

Class S Highlights

Offering Price8

Class S: $28.15



 

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. 
Each an investment adviser registered with the U.S. Securities and Exchange Commission.
Effective as of April 30, 2020. Asset valuations will be estimates of fair value and do not represent the amount an investor would receive now or at any time in the future. CNL Strategic Capital’s valuation is inherently subjective, and the NAV may not accurately reflect the actual price at which its assets could be liquidated. The realized value of shares will be dependent upon market conditions that are beyond anyone’s ability to control or predict.
Effective as of May 20, 2020. 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.
Distributions declared through May 29, 2020. The annualized distribution rate is calculated by annualizing the distributions paid and dividing by the current price per share. For the fiscal years ended Dec. 31, 2018 and 2019, approximately 85.2% and 61.7%, respectively, of total distributions were paid from net investment income before expense support, 11.1% and 23.5%, respectively, were paid from reimbursable expense support, and 3.7% and 14.8%,respectively, were paid from offering proceeds. Distributions are not guaranteed in frequency or amount. Distributions from sources other than income may lower overall returns and will be dilutive to later investors. CNL Strategic Capital is obligated to repay expense support to the managers over several years, which will reduce future income available for distributions. Distribution amounts and composition of coverage will vary among share classes.
5 The share repurchase program offers redemptions limited to direct reinvestment program proceeds, or 2.5% of CNL Strategic Capital’s aggregate net asset value per calendar quarter and up to 10% of the aggregate net asset value for the prior four quarters. The program may be suspended, modified or terminated by the board of directors at any time.
6 The board of directors is under no obligation to pursue or complete any particular liquidity event during this time frame or otherwise.
7 FA share’s second tranche beginning on April 18, 2019 closed to new investors on Dec. 31. 2019 and the third tranche beginning on July 11, 2019 closed to new investors on March 31, 2020.
Effective as of March 16, 2020. The offering price is initially based on the Class FA share NAV plus commissions and dealer manager fees.