# EDGAR Filing Document

**Accession Number:** 0001684682
**File Stem:** 0001839882-23-007027
**Filing Date:** 2023-3
**Character Count:** 12801
**Document Hash:** e6f970dbfc5ebfb38d10d2097e5a5780
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001839882-23-007027.hdr.sgml**: 20230317

**ACCESSION NUMBER**: 0001839882-23-007027

**CONFORMED SUBMISSION TYPE**: 424B3

**PUBLIC DOCUMENT COUNT**: 1

**FILED AS OF DATE**: 20230317

**DATE AS OF CHANGE**: 20230317

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** CNL Strategic Capital, LLC
- **CENTRAL INDEX KEY:** 0001684682
- **STANDARD INDUSTRIAL CLASSIFICATION:** INVESTMENT ADVICE [6282]
- **IRS NUMBER:** 320503849
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 424B3
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-253295
- **FILM NUMBER:** 23742166

**BUSINESS ADDRESS:**
- **STREET 1:** P.O. BOX 4920
- **CITY:** ORLANDO
- **STATE:** FL
- **ZIP:** 32802
- **BUSINESS PHONE:** 407-650-1000

**MAIL ADDRESS:**
- **STREET 1:** P.O. BOX 4920
- **CITY:** ORLANDO
- **STATE:** FL
- **ZIP:** 32802

**Filed Pursuant to Rule 424(b)(3)** 

**Registration No. 333-253295**

**CNL STRATEGIC CAPITAL, LLC**

**SUPPLEMENT NO. 18 DATED MARCH 17, 2023**

**TO THE PROSPECTUS DATED APRIL 18, 2022**

We are providing this Supplement No. 18 to you in order to supplement our prospectus dated April 18, 2022 (as supplemented to date, the "Prospectus"). This supplement provides information that shall be deemed part of, and must be read in conjunction with, the Prospectus. Capitalized terms used in this supplement have the same meanings in the Prospectus unless otherwise stated herein. The terms "we," "our," "us" and "Company" refer to CNL Strategic Capital, LLC.

*Before investing in our shares, you should read the entire Prospectus and this supplement, and consider carefully our investment objectives, risks, fees and expenses. You should also carefully consider the information disclosed in the section of the Prospectus captioned "Risk Factors" before you decide to invest in our shares.*

 

The purpose of this supplement is to disclose the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to disclose the adjusted per share public offering price for each class
of our shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to disclose information about our distributions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to disclose the Company's net asset value for the month ended February
28, 2023; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· to disclose certain return information for all outstanding classes of shares.

**<u>Public Offering Price Adjustment</u>**

On March 17, 2023, the board of directors (the "Board") approved the new per share public offering price for each share class in this offering. The new public offering prices will be effective as of March 24, 2023 and will be used for the Company's next monthly closing for subscriptions on March 31, 2023. As of the date of this supplement, all references throughout the Prospectus to the per share public offering price for each share class available in this offering are hereby updated to reflect the new per share public offering prices stated in the table below. The purchase price for Class A, Class T, Class D, and Class I shares purchased under our distribution reinvestment plan will be equal to the net asset value per share for each share class as of February 28, 2023. The following table provides the new public offering prices and applicable upfront selling commissions and dealer manager fees for each share class available in this offering:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Class A** | **Class T** | **Class D** | **Class I** |
| Public Offering Price, Per Share | $35.76 | $34.32 | $32.36 | $33.16 |
| Selling Commissions, Per Share | $2.15 | $1.03 |  |  |
| Dealer Manager Fees, Per Share | $0.89 | $0.60 |  |  |

---

We have also posted this information on our website at www.cnlstrategiccapital.com. A subscriber may also obtain this information by calling us by telephone at (866) 650-0650.

**<u>Declaration of Distributions</u>**

The following table supplements the section entitled "Distribution Policy" which begins on page 51 of this Prospectus. On March 17, 2023, the Board declared cash distributions on the outstanding shares of all classes of our common shares based on a monthly record date, as set forth below:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;**Distribution** <br> **Record Date** | &nbsp;&nbsp;**Distribution** <br> **Payment Date** | &nbsp;&nbsp;**Declared Distribution Per Share for Each Share Class** | &nbsp;&nbsp;**Declared Distribution Per Share for Each Share Class** | &nbsp;&nbsp;**Declared Distribution Per Share for Each Share Class** | &nbsp;&nbsp;**Declared Distribution Per Share for Each Share Class** | &nbsp;&nbsp;**Declared Distribution Per Share for Each Share Class** | &nbsp;&nbsp;**Declared Distribution Per Share for Each Share Class** |
|  |  | &nbsp;&nbsp;**Class FA** | **Class A** | **Class T** | **Class D** | **Class I** | **Class S** |
| &nbsp;&nbsp;April 26, 2023 | &nbsp;&nbsp;April 27, 2023 | &nbsp;&nbsp;$0.104167 | $0.104167 | $0.083333 | $0.093750 | $0.104167 | $0.104167 |

---

**<u>Determination of Net Asset Value for Outstanding Shares for the month ended February 28, 2023</u>**

On March 17, 2023, the Board determined the Company's net asset value per share for each share class in a manner consistent with the Company's valuation policy, as described under "Determination of Net Asset Value" in this Prospectus. Additionally, pursuant to our share repurchase program, we conduct quarterly share repurchases to allow our shareholders to sell all or a portion of their shares back to us at a price equal to the net asset value per share as of the last date of the month immediately prior to the repurchase date. The repurchase date for our next quarterly repurchase will be March 31, 2023. This table provides the Company's aggregate net asset value and net asset value per share for its Class FA, Class A, Class T, Class D, Class I, and Class S shares as of February 28, 2023 (in thousands, except per share data):

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Month Ended<br> February 28, 2023** | **Class FA** | **Class A** | <br>**Class T** | <br>**Class D** | **Class I** | <br>**Class S** | **Total** |
| &nbsp;&nbsp;Net Asset Value | $149647 | $76504 | $83521 | $67278 | $311538 | $63139 | $751627 |
| &nbsp;&nbsp;Number of Outstanding Shares | 4244 | 2338 | 2555 | 2079 | 9395 | 1765 | 22376 |
| &nbsp;&nbsp;Net Asset Value, Per Share | $35.26 | $32.72 | $32.69 | $32.36 | $33.16 | $35.77 |  |
| &nbsp;&nbsp;Net Asset Value, Per Share Prior Month | $35.28 | $32.79 | $32.78 | $32.43 | $33.22 | $35.78 |  |
| &nbsp;&nbsp;Increase or Decrease in Net Asset Value, Per Share from Prior Month | 0.02) | 0.07) | 0.09) | 0.07) | 0.06) | 0.01) |  |

---

The change in the Company's net asset value per share for each applicable share class for the month ended February 28, 2023 was primarily driven by the decreases in the fair value of three out of eleven of the Company's portfolio company investments. However, the fair value of eight of the Company's portfolio company investments increased during the same period.

**<u>Return Information</u>**

The following table illustrates year-to-date ("YTD"), trailing 12 months ("1-Year Return"), 3-Year Return, 5-Year Return, Average Annual Return ("AAR") Since Inception, and cumulative total returns through February 28, 2023 ("Cumulative Total Return"), with and without upfront sales load, as applicable:

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **YTD Return<sup>(1)</sup>** | **1-Year Return<sup>(2)</sup>** | **3-Year Return<sup>(3)</sup>** | **5-Year**<br> **Return<sup>(4)</sup>** | **AAR Since Inception<sup>(5)</sup>** | **Cumulative Total Return<sup>(5)</sup>** | **Cumulative Return Period** |
| Class FA (no sales load) | 1.6% | 10.6% | 43.2% | 73.0% | 14.4% | 73.0% | February 7, 2018 – February 28, 2023 |
| Class FA (with sales load) | -5.0% | 3.4% | 33.9% | 61.7% | 12.2% | 61.7% | February 7, 2018 – February 28, 2023 |
| Class A (no sales load) | 1.5% | 9.5% | 38.7% | N/A | 12.7% | 62.3% | April 10, 2018 – February 28, 2023 |
| Class A (with sales load) | -7.1% | 0.2% | 26.9% | N/A | 9.9% | 48.5% | April 10, 2018 – February 28, 2023 |
| Class I | 1.5% | 9.5% | 39.1% | N/A | 13.1% | 64.0% | April 10, 2018 – February 28, 2023 |
| Class T (no sales load) | 1.2% | 9.2% | 34.8% | N/A | 11.2% | 53.6% | May 25, 2018 – February 28, 2023 |
| Class T (with sales load) | -3.6% | 4.0% | 28.4% | N/A | 9.7% | 46.3% | May 25, 2018 – February 28, 2023 |
| Class D | 1.4% | 9.5% | 37.5% | N/A | 11.6% | 54.4% | June 26, 2018 – February 28, 2023 |
| Class S (no sales load) | 1.7% | 11.6% | N/A | N/A | 15.6% | 45.6% | March 31, 2020 – February 28, 2023 |
| Class S (with sales load) | -1.9% | 7.7% | N/A | N/A | 13.9% | 40.5% | March 31, 2020 – February 28, 2023 |

---

**<sup>(1)</sup>** For the period from January 1, 2023 through February 28, 2023.

**<sup>(2)</sup>** For the period from March 1, 2022 through February 28, 2023.

**<sup>(3)</sup>** For the period from March 1, 2020 through February 28, 2023.

**<sup>(4)</sup>** For the period from March 1, 2018 through February 28, 2023.

**<sup>(5)</sup>** For the period from the date the first share was issued for each respective share class through February 28, 2023. The AAR Since Inception is calculated by taking the Cumulative Total Return and dividing it by the return period.

**** 

Total 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. Amounts are not annualized. The Company's performance changes over time and currently may be different than that shown above. Past performance is no guarantee of future results. For details regarding applicable sales load, please see the "Plan of Distribution" section in the Company's Prospectus. Class I and Class D shares have no upfront sales load.

For the two month period ended February 28, 2023, sources of declared distributions on a GAAP basis were as follows:

---

| | | |
|:---|:---|:---|
|  | **Two Months Ended** <br> **February 28, 2023** | **Two Months Ended** <br> **February 28, 2023** |
|  | **Amount**<br> **(in 000s)** | **% of Total Distributions Declared** |
| Net investment income<sup>(1)</sup> | $3169 | 72.9% |
| Distributions in excess of net investment income<sup>(2)</sup> | 1176 | 27.1% |
| Total distributions declared | $4345 | 100.0% |

---

Cash distributions net of distributions reinvested during the period presented were funded from the following sources:

---

| | | |
|:---|:---|:---|
|  | **Two Months Ended** <br> **February 28, 2023** | **Two Months Ended** <br> **February 28, 2023** |
|  | **Amount**<br> **(in 000s)** | **% of Cash Distributions Net of Distributions Reinvested** |
| Net investment income before expense support (reimbursement) | $352 | 13.3% |
| Expense support (reimbursement) | 2817 | 106.3% |
| Net investment income | 3169 | 119.6% |
| Cash distributions net of distributions reinvested in excess of net investment income<sup>(2)</sup> |  | — % |
| Cash distributions net of distributions reinvested<sup>(3)</sup> | $2649 | 100.0% |

---

 

**<sup>(1)</sup>** Net investment income includes expense support (reimbursement) due from the Manager and Sub-Manager of $2,817 for the two months ended February 28, 2023.

**<sup>(2)</sup>** Consists of distributions made from offering proceeds for the period presented.

**<sup>(3)</sup>** For the two months ended February 28, 2023, excludes $1,696 of distributions reinvested pursuant to our distribution reinvestment plan.

For the years ended December 31, 2022, 2021, 2020, 2019, and 2018 distributions were paid from multiple sources and these sources included net investment income before expense support of 76.3%, 65.2%, 42.3%, 61.7% and 85.2%, reimbursable expense support of 0.0%, 0.0%, 33.2%, 23.5% and 11.1%, and offering proceeds of 23.7%, 34.8%, 24.5%, 14.8% and 3.7%, respectively. The Company will be required to repay expense support to the Manager and Sub-Manager in future periods which may reduce future income available for distributions, however as of the date of this supplement, management believes that reimbursement of all expense support is not probable under the terms of the Expense Support and Conditional Reimbursement Agreement. We have also posted this information on our website at www.cnlstrategiccapital.com. A subscriber may also obtain this information by calling us by telephone at (866) 650-0650. The calculation of the Company's net asset value is a calculation of fair value of the Company's assets less the Company's outstanding liabilities.