Orlando, Fla., Aug. 07, 2026 (GLOBE NEWSWIRE) — CNL Strategic Capital, LLC ("CNL Strategic Capital" or "the Company") has announced its operating results for the six months ended June 30, 2026. The Company seeks to provide current income and long-term appreciation to investors by acquiring controlling equity stakes alongside loan positions in privately owned middle-market businesses. As a publicly registered, non-traded limited liability company, CNL Strategic Capital's shares do not trade on a national securities exchange; performance is measured through periodic net asset value (NAV) updates rather than daily market pricing, a structure common among retail-focused alternative investment vehicles that provide access to private middle-market companies typically unavailable on public markets.

Portfolio Overview

As of June 30, 2026, CNL Strategic Capital's portfolio comprised equity and debt investments across 18 portfolio companies, with approximately $1.6 billion in total assets — an increase from approximately $1.5 billion as of December 31, 2025. Middle-market businesses, generally defined as companies generating annual revenues between $10 million and $1 billion, represent a significant segment of the U.S. private economy and are a focal area for private credit and structured equity strategies.

Financial Performance

For the six months ended June 30, 2026, the Company recorded a net change in unrealized appreciation on investments of approximately $45.5 million (including unrealized foreign currency gain) and total investment income of approximately $44.5 million. In the comparable prior-year period, the Company reported a net change in unrealized appreciation on investments of $55.2 million (including unrealized foreign currency gain) and total investment income of approximately $35.1 million. Year-over-year, unrealized appreciation declined while total investment income increased, reflecting a shift in the composition of returns between mark-to-market valuation changes and recurring income generated by the portfolio's debt positions.

Annualized Returns Since Inception (Based on NAV, Through June 30, 2026)

The annualized return since inception based on net asset value (NAV) was approximately:

• 11.0% for Class FA shares
• 10.0% for Class A shares
• 9.0% for Class T shares
• 9.5% for Class D shares
• 10.0% for Class I shares
• 12.0% for Class S shares

These returns are prior to any applicable sales load and assume shareholders reinvested their distributions.

Capital Raises and Distribution Reinvestment

For the six months ended June 30, 2026, CNL Strategic Capital received approximately $75.8 million in net offering proceeds, including approximately $11.8 million through the distribution reinvestment plan. Since beginning operations in February 2018 through June 30, 2026, the Company raised approximately $1.4 billion in total, including $79.9 million received through the distribution reinvestment plan. The ongoing capital raise indicates continued investor interest in non-traded alternative investment vehicles offering exposure to private middle-market companies, a category that has expanded notably as retail investors seek diversified income sources beyond traditional public equity and fixed-income markets.

Methodology Notes

Total investment return is calculated for each share class as the change in the net asset value for such share class during the period, assuming all distributions are reinvested. The annualized return since inception captures the average annual performance over the return period and is calculated as a geometric average, reflecting 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. The period measured runs from the date the first share was issued for each respective share class through June 30, 2026.

Additional footnote disclosures:

• Represents percentage of cash distribution declared, net of distribution reinvested for the period presented.
• Excludes $11,834 and $10,510 of distributions reinvested pursuant to the distribution reinvestment plan during the six months ended June 30, 2026, and 2025, respectively.
• Net investment income includes Expense Reimbursement (Support) of $970 and $(3,892) for the six months ended June 30, 2026, and 2025, respectively.
• Consists 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).

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 $37 billion in assets. CNL is headquartered in Orlando, Florida.

About Levine Leichtman Strategic Capital

LLSC is an affiliate of Levine Leichtman Capital Partners, LLC (LLCP), a middle-market private equity firm with a 42-year track record of investing across various targeted sectors, including Business Services, Franchising & Multi-unit, 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 serve as an attractive alternative to 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 $18.6 billion of institutional capital across 20 investment funds and has invested in over 120 portfolio companies. LLCP currently manages $13.0 billion of assets and maintains offices in Los Angeles, New York, Chicago, Miami, London, Stockholm, Amsterdam, and Frankfurt.

Forward-Looking Statements

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" based on the beliefs and assumptions of CNL Strategic Capital's management and the information currently available to management at the time of such statements. Forward-looking statements generally can be identified by words such as "believes," "expects," "will," "intends," "plans," "estimates," or similar expressions indicating future events. These statements are subject to substantial risks and uncertainties, many of which are difficult to predict and generally beyond CNL Strategic Capital's control. Important risks, uncertainties, and factors that could cause actual results to differ materially from those in forward-looking statements include 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 other documents filed by the Company with the Securities and Exchange Commission.

Source: GlobeNewswire