Orlando, Nov. 07, 2025 (GLOBE NEWSWIRE) -- — CNL Strategic Capital, LLC (CNL Strategic Capital or the Company) seeks to provide current income and long-term appreciation to investors by acquiring controlling equity stakes in combination with loan positions in privately owned middle-market businesses. The Company announced its operating results for the nine months ended Sept. 30, 2025.

Highlights:

As of Sept. 30, 2025, CNL Strategic Capital’s portfolio consisted of equity and debt investments in 17 portfolio companies and had approximately $1.4 billion in total assets, compared with approximately $1.3 billion as of Dec. 31, 2024.For the nine months ended Sept. 30, 2025, the Company recognized a net change in unrealized appreciation on investments of approximately $83.4 million, including unrealized foreign currency gain and had total investment income of approximately $60.6 million. That compares with a net change in unrealized appreciation on investments of $50.7 million, including unrealized foreign currency gain, and total investment income of approximately $51.8 million during the first nine months of 2024.The annualized return since inception based on net asset value (NAV) and through Sept. 30, 2025, was approximately 11.1% for Class FA shares, 10.0% for Class A shares, 9.1% for Class T shares, 9.5% for Class D shares, 10.1% for Class I shares and 12.2% 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, 2025, CNL Strategic Capital received approximately $118.5 million in net offering proceeds, including approximately $16.0 million received through the distribution reinvestment plan. Since beginning operations in February 2018 until Sept. 30, 2025, CNL Strategic Capital raised approximately $1.3 billion, including $62.4 million received through the distribution reinvestment plan.  Cash distributions declared net of distributions reinvested were funded from the following sources (in thousands):

			Nine Months Ended Sept. 30,
			2025			2024
	Amount			Percentage2		Amount		Percentage2
Net investment income before Expense Support (reimbursement)	$   13,453			85.7 %		$   17,618		120.6 %
Expense Support (reimbursement)	1,017			6.5		--		--
Net investment income	$   14,470			92.2 %		$   17,618		120.6 %
Net realized gains	1,432			9.1		--		--
Cash distributions declared, net of distributions reinvested3	$ 15,703			100.0 %		$   14,604		100.0 %

Additionally, the Company accrued expense support due from the Manager and Sub-Manager of approximately $1.0 million, related to Class I shares, during the nine months ended Sept. 30, 2025. The Company did not accrue any expense support due from the Manager and Sub-Manager during the nine months ended Sept. 30, 2024. Although the Company covered 100% of cash distributions from net investment income and realized gains, the increase in expense support accrued during the nine months ended Sept. 30, 2025, as compared to Sept. 30, 2024, is primarily attributable to the increase of certain Class I class-specific expenses.

Sources of declared distributions on a GAAP basis (in thousands):

			Nine Months Ended Sept. 30,
			2025					2024
	Amount		% of Distributions Declared		Amount				% of Distributions Declared
Net investment income4	$   14,470		45.6 %		$17,618				63.6 %
Net realized gain	1,432		4.5		--				--
Distributions in excess of net investment income5	15,830		49.9		10,079				36.4
Total distributions declared	$ 31,732		100.0 %		$27,697				100.0 %

Total investment return based on net asset value (NAV) after total return incentive fee per share for the nine months ended Sept. 30, 2025:1

Class FA	Class A	Class T	Class D	Class I	Class S
8.6%	7.9%	7.1%	7.6%	7.8%	8.6%

(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.)

Annualized return since inception based on NAV and through the nine months ended Sept. 30, 2025:1

Class FA (2/7/18-9/30/25)	Class A (4/10/18-9/30/25)	Class T (5/25/18-9/30/25)	Class D (6/26/18-9/30/25)	Class I (4/10/18-9/30/25)	Class S (3/31/20-9/30/25)
11.1%	10.0%	9.1%	9.5%	10.1%	12.2%

(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.)

1This is not 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 the nine months ended Sept. 30, 2025. 2Represents percentage of cash distribution declared, net of distribution reinvested for the period presented. 3Excludes $16,029 and $13,093 of distributions reinvested pursuant to our distribution reinvestment plan during the nine months ended Sept. 30, 2025, and 2024, respectively. 4Net investment income includes Expense Support of $1,017 and $0 for the nine months ended Sept. 30, 2025, and 2024, respectively. 5Consists of distributions made from offering proceeds for the periods presented.

About CNL Strategic Capital

CNL Strategic Capital is a publicly registered, non-traded limited liability company that seeks to provide current income and long-term appreciation to individuals by acquiring controlling equity stakes in combination with loan positions in durable and growing middle-market businesses. The company is externally managed by CNL Strategic Capital Management, LLC and Levine Leichtman Strategic Capital, LLC (LLSC). For additional information, please visit cnlstrategiccapital.com.

About CNL Financial Group

CNL Financial Group (CNL) is a leading private investment management firm providing alternative investment opportunities. Since inception in 1973, CNL and/or its affiliates have formed or acquired companies with more than $36 billion in assets. CNL is headquartered in Orlando, Florida. For additional information, please visit cnl.com.

About Levine Leichtman Strategic Capital

LLSC is an affiliate of Levine Leichtman Capital Partners, LLC (LLCP), a middle-market private equity firm with a 40-year track record of investing across various targeted sectors, including Franchising & Multi-unit, Business Services, Education & Training and Engineered Products & Manufacturing. LLCP utilizes a differentiated Structured Private Equity investment strategy, combining debt and equity capital investments in portfolio companies. LLCP believes that by investing in a combination of debt and equity securities, it offers management teams growth capital in a highly tailored, flexible investment structure that can be a more attractive alternative than traditional private equity.

LLCP’s global team of dedicated investment professionals is led by 9 partners who have worked at LLCP for an average of 20 years. Since inception, LLCP has managed approximately $18.1 billion of institutional capital across 20 investment funds and has invested in over 120 portfolio companies. LLCP currently manages $12.7 billion of assets and has offices in Los Angeles, New York, Chicago, Miami, London, Stockholm, Amsterdam and Frankfurt. For additional information, please visit llcp.com.

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.

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Senior Vice President

Marketing and Communications

CNL Financial Group

407-650-1223

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Source: CNL Strategic Capital