CNL Strategic Capital, LLC

CIK:0001684682|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Investment income
PIK income			$ 4,536	$ 3,552
Total investment income	$ 22,196	$ 18,217	44,469	35,123
Operating expenses
Total return incentive fees	7,050	13,079	13,029	13,467
Base management fees	6,860	5,765	13,434	11,070
Offering expenses	201	610	383	1,150
Professional services	758	824	1,778	1,488
Pursuit costs	106	274	244	691
Distribution and shareholder servicing fees	493	497	998	988
Custodian and accounting fees	333	148	500	296
Insurance expense	63	55	118	110
Director fees and expenses	63	52	144	103
General and administrative expenses	157	102	216	183
Interest expense	53	99	87	156
Total operating expenses	16,137	21,505	30,931	29,702
Expense support	0	(3,883)	0	(3,892)
Reimbursement of expense support	970	0	970	0
Net operating expenses	17,107	17,622	31,901	25,810
Net investment income before taxes	5,089	595	12,568	9,313
Income tax expense	(68)	(30)	(100)	(47)
Net investment income	5,021	565	12,468	9,266
Net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss):
Total net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss)	26,325	45,339	45,510	55,205
Provision for deferred taxes on investments	(2,647)	(3,640)	(5,152)	(5,013)
Net gain on investments	26,325	45,339	45,510	55,205
Net increase in net assets resulting from operations	31,346	45,904	57,978	64,471
Class FA
Operating expenses
Total return incentive fees	435	669	810	939
Base management fees	260	273	523	541
Offering expenses	$ 0	$ 0	$ 0	$ 0
Net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss):
Net increase in net assets resulting from operations per share (in usd per share)	$ 1.07	$ 1.56	$ 1.99	$ 2.17
Weighted average shares outstanding (in shares)	3,660	3,921	3,691	3,968
Class A
Operating expenses
Total return incentive fees	$ 1,959	$ 3,668	$ 3,591	$ 3,668
Base management fees	1,925	1,600	3,765	3,069
Offering expenses	$ 2	$ 39	$ 3	$ 97
Net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss):
Net increase in net assets resulting from operations per share (in usd per share)	$ 0.84	$ 1.27	$ 1.56	$ 1.81
Weighted average shares outstanding (in shares)	9,319	8,473	9,232	8,381
Class T
Operating expenses
Total return incentive fees	$ 374	$ 924	$ 700	$ 924
Base management fees	344	424	712	834
Offering expenses	$ 18	$ 88	$ 36	$ 145
Net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss):
Net increase in net assets resulting from operations per share (in usd per share)	$ 0.76	$ 1.07	$ 1.41	$ 1.57
Weighted average shares outstanding (in shares)	1,970	2,453	2,035	2,479
Class D
Operating expenses
Total return incentive fees	$ 608	$ 1,263	$ 1,120	$ 1,263
Base management fees	579	545	1,159	1,068
Offering expenses	$ 0	$ 16	$ 2	$ 32
Net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss):
Net increase in net assets resulting from operations per share (in usd per share)	$ 0.81	$ 1.21	$ 1.49	$ 1.72
Weighted average shares outstanding (in shares)	2,991	3,034	3,025	3,059
Class I
Operating expenses
Total return incentive fees	$ 3,479	$ 6,270	$ 6,445	$ 6,270
Base management fees	3,606	2,783	6,983	5,285
Offering expenses	$ 181	$ 467	$ 342	$ 876
Net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss):
Net increase in net assets resulting from operations per share (in usd per share)	$ 0.79	$ 1.34	$ 1.49	$ 1.86
Weighted average shares outstanding (in shares)	17,508	14,973	17,200	14,689
Class S
Operating expenses
Total return incentive fees	$ 195	$ 285	$ 363	$ 403
Base management fees	146	140	292	273
Offering expenses	$ 0	$ 0	$ 0	$ 0
Net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss):
Net increase in net assets resulting from operations per share (in usd per share)	$ 1.05	$ 1.61	$ 1.96	$ 2.22
Weighted average shares outstanding (in shares)	1,670	1,707	1,679	1,709
Portfolio company investments
Investment income
Interest income	$ 10,794	$ 10,475	$ 21,483	$ 20,771
Dividend income	8,622	5,009	17,575	8,940
PIK income	2,336	1,896	4,536	3,552
Net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss):
Total net change in unrealized appreciation on investments, including unrealized foreign currency gain (loss)	28,972	48,979	50,662	60,218
Cash and Cash Equivalents
Investment income
Interest income	$ 444	$ 837	$ 875	$ 1,860

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Operating Activities:
Net increase in net assets resulting from operations	$ 57,978	$ 64,471
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
Purchases of portfolio company investments	(22,273)	(158,946)
Proceeds from return of capital on portfolio company investments	1,130	984
Net change in unrealized appreciation on investments and foreign currency transactions, excluding deferred taxes	(50,662)	(60,218)
PIK income	(4,536)	(3,552)
Amortization of deferred financing costs	50	0
Decrease in due to related parties	(14,753)	(13,914)
(Decrease) increase in accounts payable and other accrued expenses	(241)	522
Increase in deferred tax liabilities, net	5,152	5,013
(Decrease) increase in prepaid expenses and other assets	(144)	150
Other operating activities	0	47
Net cash used in operating activities	(28,299)	(165,443)
Financing Activities:
Proceeds from issuance of common shares	89,917	53,031
Payment on repurchases of common shares	(55,203)	(37,736)
Proceeds from line of credit	0	30,000
Distributions paid, net of distributions reinvested	(10,750)	(10,409)
Deferred financing costs	(80)	(134)
Net cash provided by financing activities	23,884	34,752
Net decrease in cash	(4,415)	(130,691)
Cash and cash equivalents, beginning of period	84,798	146,319
Cash and cash equivalents, end of period	80,383	15,628
Supplemental disclosure of cash flow information and non-cash financing activities:
Distributions reinvested	11,834	10,510
Amounts incurred but not paid (including amounts due to related parties):
Offering costs	50	187
Payable for shares repurchased	$ 34,347	$ 11,190

Investments - Schedule of Investment Portfolio Operating and Balance Sheet Data (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025	Mar. 31, 2026	Dec. 31, 2025	Mar. 31, 2025	Dec. 31, 2024
Income Statement [Abstract]
Expenses	$ (16,137)	$ (21,505)	$ (30,931)	$ (29,702)
Income tax expense	(2,715)	(3,670)	(5,252)	(5,060)
Net increase in net assets resulting from operations	31,346	45,904	57,978	64,471
Balance Sheet Related Disclosures [Abstract]
Stockholders’ equity	1,479,902	1,319,892	1,479,902	1,319,892	$ 1,451,051	$ 1,418,357	$ 1,255,213	$ 1,231,208
Clarion Safety Systems, LLC
Income Statement [Abstract]
Revenues	9,616	8,764	18,804	15,278
Expenses	(7,623)	(7,122)	(14,874)	(13,489)
Income before taxes	1,993	1,642	3,930	1,789
Income tax expense	(544)	(450)	(1,066)	(491)
Net increase in net assets resulting from operations	1,449	1,192	2,864	1,298
Balance Sheet Related Disclosures [Abstract]
Current assets	16,021		16,021			16,070
Non-current assets	82,280		82,280			82,914
Current liabilities	1,832		1,832			4,963
Non-current liabilities	24,530		24,530			23,524
Stockholders’ equity	$ 71,939		$ 71,939			$ 70,497
Ownership percentage	94.00%		94.00%			95.00%
Sill Holdings, LLC
Income Statement [Abstract]
Revenues	$ 12,177	10,663	$ 21,791	21,845
Expenses	(10,644)	(9,365)	(20,532)	(17,649)
Income before taxes	1,533	1,298	1,259	4,196
Income tax expense	(274)	(78)	(263)	(702)
Net increase in net assets resulting from operations	1,259	$ 1,220	996	$ 3,494
Balance Sheet Related Disclosures [Abstract]
Current assets	16,642		16,642			$ 13,812
Non-current assets	109,200		109,200			109,240
Current liabilities	6,790		6,790			6,946
Non-current liabilities	17,830		17,830			18,186
Stockholders’ equity	$ 101,222		$ 101,222			$ 97,920
Ownership percentage	94.00%		94.00%			93.00%