Company Overview: CNL Strategic Capital, LLC

Business Focus:
CNL Strategic Capital, LLC is a limited liability company that primarily focuses on acquiring and growing durable, middle-market U.S. businesses. The company targets highly cash flow generative businesses with annual revenues typically between $15 million and $250 million, and with management teams seeking an ownership stake.

Management and Structure:

• Managed by: CNL Strategic Capital Management, LLC (Manager), registered as an investment adviser under the Advisers Act.
• Sub-Manager: Levine Leichtman Strategic Capital, LLC, responsible for daily asset management.
• Administrative services: Provided by the Manager and Sub-Manager through separate agreements.
• Investment Strategy: Owns controlling equity interests combined with debt positions in private companies, generally structuring investments with limited or no third-party leverage.

Industry Focus:

• Business services
• Consumer products
• Education
• Franchising
• Light manufacturing / specialty engineering
• Non-FDA regulated healthcare and safety companies

Exclusions:

• No acquisitions in oil and gas, commodities, high technology, internet, or e-commerce.
• Avoids distressed or turnaround companies at acquisition.

Investment Approach:

• Holding period of 4 to 6 years on average, possibly longer.
• Exit strategies include recapitalizations, public offerings, asset sales, mergers, or business combinations, tailored to maximize shareholder value.

Financial Details:

• As of March 24, 2025, the company has 4,017,055 Class FA shares, 8,320,774 Class A shares, 2,513,892 Class T shares, 3,099,953 Class D shares, 14,621,470 Class I shares, and 1,712,045 Class S shares outstanding.
• No established public trading market for shares; offering at prices around $37.10 to $38.51 per share.
• Total net proceeds raised from offerings: approximately $1.2 billion since inception, with gross proceeds of about $971.6 million as of December 31, 2024.

Portfolio and Revenue Highlights:

• The company has investments in 16 portfolio companies valued at a total fair value of $1.1 billion as of December 31, 2024.
• The portfolio includes control and minority interests across various industries.

Key Portfolio Companies as of December 31, 2024:

• Lawn Doctor: A residential lawn care franchisor, owns about 61%, with total assets of approximately $98.7 million.
• Polyform: Developer and manufacturer of polymer clay craft products, owns about 87%, with assets around $31.7 million.
• Roundtables: Provider of industry-specific advisory services to consumer finance, owns about 81%, assets approximately $59.5 million.
• HSH Healthcare Safety: Produces insulin pen needles and sharps disposal solutions, owns about 75%, and has assets totaling $42.4 million.
• ATA: Title services provider, owns about 75%, with assets approximately $86.7 million.
• Douglas: Manufacturer of commercial cleaning and sanitizing equipment, assets of $55.9 million.

Revenue and Income Data (2024):

• Lawn Doctor: Revenue of $45.3 million, net income of $3.4 million.
• Polyform: Revenue of $18.95 million, net loss of $463 thousand.
• Roundtables: Revenue of $17.9 million, net income of $1.35 million.
• HSH: Revenue of $35 million, net income of $2.52 million.
• ATA: Revenue of $52.1 million, net loss of $2.38 million.
• Douglas: Revenue of $55.0 million (net income not specified).

Other Business Details:

• The company does not own real estate properties but believes its office facilities are sufficient.
• As of December 31, 2024, the company had approximately 12,850 shareholders across its share classes.
• The company has a share repurchase program, limited to 2.5% quarterly and 10% annually of net asset value, with recent repurchases totaling 535,000 shares at an average price of $35.85 per share in December 2024.
• No current legal proceedings or mine safety disclosures.

Summary:
CNL Strategic Capital, LLC acquires controlling and minority equity interests along with debt in middle-market U.S. companies, focusing on cash flow stability and growth over a long-term horizon. Its portfolio spans multiple industries, primarily business services, consumer products, healthcare, and franchising, with assets valued at over $1 billion. The company raises capital through public offerings, private placements, and plans to exit investments via various strategies to maximize shareholder value.