Crescent Capital Group Closes Eighth Credit Solutions Fund, Raising $8 Jason Breaux: Hey Robert, its Jason. I think you said something to the effect of the portfolio companies have adequate liquidity, and in some cases, its been addressed or something like that. The obvious, I mean, how you gave the interest coverage based on year-end rates. Crescent Capital BDC, Inc. (NASDAQ: CCAP) was in 6 hedge funds' portfolios at the end of the third quarter of 2020. bdcir@crescentcap.com. While we do anticipate further market volatility and the potential for spread widening as the cycle progresses, we feel good about our current portfolio, and we remain very excited about the First Eagle BDC transaction as we further enhance our scale and position. On a GAAP basis, fourth quarter net investment income per share was $0.52. Venture Capital Portfolio After submitting your request, you will receive an activation email to the requested email address. I believe it will make millions of Americans vastly wealthier. Crescent Credit Solutions VIII's backers include insurance companies, pension funds, sovereign wealth funds, financial institutions, and multi-employer plans. He also served as a member of the hedge fund solutions group at The Blackstone Group, L.P., where he focused on business development efforts across the Northeast and Southeast U.S. working with a diverse array of institutional clients. We have a diverse portfolio across healthcare, industrial, financial services, technology, education and consumer brands. During this conference call, we may discuss certain non-GAAP measures as defined by SEC Regulation G, such as adjusted net investment income or NII per share. And so on a pro forma combined basis, I think were going to end up sort of right in the middle of our target leverage range that we publicly stated as kind of 1.1 to 1.4. Private Equity Portfolio. We provide support for founders and senior management teams to accelerate the achievement of their goals. We target middle market companies located in Australia and New Zealand with enterprise values of $50m to $300m. Our portfolio at fair value was comprised of the following: Great. We will not be outlining additional details of the transaction on this call today, and we direct any interest investors to the proxy statement that was filed in January. We have raised six funds since 2000 and we are a top quartile manager on global metrics. bdcir@crescentcap.com. As far as the deployment in Q4, it was all normal course getting drawn on unfunded and existing commitments that we had to our portfolio companies. The weighted average loan-to-value in the portfolio at time of underwriting was approximately 40%, which provides the same margin of safety from both an enterprise value perspective as well as capitalized risk beneath our tranche that is available to support our investments. For the fourth quarter, over 99% of our total debt investments at fair value made full scheduled principal and interest payments. Private Credit | Sun Life Capital Management Operator: Thank you. S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. Crescent Bit Capital is a type of secure investment that grows your money at a guaranteed rate based of chosen plan of interest for a fixed period of time. Crescent is an alternative asset manager with approximately $40 billion 1 of assets under management and over 210 employees as of December 31, 2022. An offering is made only by the applicable offering documents and only in those jurisdictions where permitted by law. CCS Fund VIII Becomes Largest Capital Raise in Crescent's History. Crescent Capital BDC, Inc. (NASDAQ: CCAP) is a business development company focused on originating and investingin the debt of private middle market companies principally located in the U.S. We seek to maximize the total return of our stockholders in the form of current income and capital appreciation by providing capital solutions to companies with sound business fundamentals and strong growth prospects. Between 1957 and 1966 Warren Buffetts hedge fund returned 23.5% annually after deducting Warren Buffetts 5.5 percentage point annual fees. Total investment income of $34.6 million for the fourth quarter, the highest quarterly figure weve reported since inception compares to $29 million for the prior quarter, representing an increase of approximately 19%. Acting as a first-mover, we put together innovative financing structures and investment vehicles creating value for our institutional investors. Please turn to Slide 15 where we highlight our recent activity. In addition to equity capital, partnering with Crescent brings access to deep industry expertise and significant strategy and operational support. Active vs. Crescent Capital Group LP has closed its eighth private credit fund at $8 billion. Total investment income again reached its highest level since inception and recurring yield related investment income continues to grow in both absolute dollars and as a percentage of our total revenue, which Gerhard will provide more color on. That nonrecurring income has now been replaced by recurring yield related income from Crescents originated assets. Please note that Crescent Capital BDC, Inc. may be referred to as CCAP, Crescent BDC or the company throughout the call. I believe he will not only run again next year, but could win a 2nd Presidential term and by a LANDSLIDE. We generally believe that our private equity partners provide operational and financial support to strengthen their portfolio companies for long-term value creation, which is particularly valuable during periods of heightened volatility, like the one we are investing in today. Weve generated significant investment income in the form of fees, dividends and accelerated amortization of OID from the Alcentra portfolio over close to the last two years having realized 136% of our cost basis with approximately $22 million of unrealized value remaining. Get the full list, Youre viewing 4 of 6 team members. Read More Our Strategy Learn more about our investing strategy. Founder, Chief Executive Officer and Managing Director, Chief Financial Officer & Investment Executive, Youre viewing 10 of 67 investments. We are a community of like-minded real estate investors who together have a stronger purchasing power to acquire and operate multi-family properties for their potential of hands-free, tax-free passive income. Real Estate Portfolio Direct and LP investments across various asset types across the United States, including commercial, retail, multi-family, residential, hotel, development, self-storage and RV Parks. Heres an airasia flight discount BigPay users can benefit from for 2023, High Airfares Are Here to Stay, AirAsias Fernandes Says. Next, CBDC Senior Loan Fund, our joint venture was formally dissolved during the fourth quarter after being largely wound down in recent quarters. Sun Life-backed Crescent targets $6bn for two private debt funds Through our deep inhouse expertise assisting emerging and growth companies across Australia and New Zealand since 2000, we have raised over $3bn across six funds and completed more than 45 foundation investments and assisted our portfolio companies with over 150 follow-on acquisitions. . From a liquidity perspective, as of year-end, we had $225 million of undrawn capacity, subject to leverage, borrowing base and other restrictions and $17 million in cash and cash equivalents. Crescent Capital Partners General Information. We see several investors trying to strike it rich in options market by risking their entire savings. This increase was driven primarily by rising base rates and higher spreads. We have a diverse portfolio across healthcare, industrials, financial services, technology, education and consumer brands. Jason Breaux: Sure. Crescent Capital BDC, Inc. - Investor Relations it's been delivered there. We have a track record of expanding Australian businesses into Asia with over 50% of portfolio companies having an Asian presence. Operator: Ladies and gentlemen, this does conclude our conference call for today. The company assumes no obligation to update any such forward-looking statements. 2009 Crescent Capital, All Rights Reserved. Crescent Capital BDC, Inc. (NASDAQ:CCAP) Q4 2022 Earnings Call Thanks for the question. The companys actual results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings. Our investment portfolio continues to consist primarily of senior secured first lien and unitranche first lien loans, collectively representing 90% of the portfolio at fair value, up from 89% in the prior quarter. Based in New York, Mr. Harari is responsible for developing and executing Crescents strategic sales and marketing plan for clients and assets, including identifying potential new investors, developing and maintaining client relationships, designing new investment solutions and managing Crescents investor relations and client solutions team. Founded in 2000, Crescent Capital Partners is a private equity firm based in Sydney, Australia. Our weighted average portfolio grade of 2.1 was unchanged as compared to the past few quarters, and the percentage of risk rated one and two investments, the highest ratings our portfolio companies can receive accounted for 87% of the portfolio at fair value, down modestly from last quarter. Stock Market | FinancialContent Business Page Average Retirement Savings By Age: Are You Normal? Because were invested in a largely first lien and unitranche focused portfolio, having largely rotated out of legacy Alcentra names and our broadly-syndicated bank loan joint venture, we expect to generate a high quality of top line revenue, primarily consisting of recurring scheduled interest income. here to register, Not for publication, email or dissemination, Whitehorse Liquidity Partners grows team to 150 professionals, PE-backed Chartbeat acquires Lineup Systems and Tubular Labs, Industrial manufacturing round-up; Personal care products; 2023 Women in PE, EQT and PSP team up on Radius acquisition; Charlesbanks Caitlin Riederer talks women in PE, Introducing the Women in PE Class of 2023; Lincoln Road partially exits Brothers National, Fengate Private Equity-backed Inflector snaps up Donalco, Audax-backed Colony acquires New South Construction Supply. "Jonathan brings a wealth of investor relations experience to Crescent, and we are excited for his leadership as we seek to grow our client relationships and respond to the increasing demand for our alternative credit offerings," said Jean-Marc Chapus, Managing Partner and Co-Founder of Crescent Capital Group. AirAsia plans to launch ride-hailing service in Spore, but do they stand a chance to compete? Crescent has achieved strong success in Financial Services, with expertise in creating value through organic growth, acquisitions and geographical expansion into Asia. Its also worth highlighting that in January, we upsized our SMBC Corporate Revolving Facility by $35 million to $385 million. Angel - Uber), Money Raised: Amount of money raised in Funding Round, Total number of investments made by investors in this hub, Announced Date: Date when the Investment is announced, Investor Name: Name of the investor who participated in the Investment, Funding Round: Name of the funding round where the Investment is made, Number of Investors: Total number of Investors in a Funding Round, Total number of lead investment firms and individual investors that invested in organizations of this hub, Total number of investment firms and individual investors that invested in organizations of this hub, Organization/Person Name: Name of the Organization or Person, Location: Where the organization is headquartered, Investor Type: This describes the type of investor this organization or person is (e.g. We believe that we benefit from years of experience managing below investment grade bank loans and debt securities over multiple economic and market cycles. Two more credit trends to highlight. Please also note that past performance or market information is not a guarantee of future results. Crescent Capital BDC, Inc. - About - Portfolio Crescent has an active partnership ethos, which is a highly structured and disciplined approach to portfolio management and hands-on value creation. Video: Cameron Johnson, CEO Nucleus Network. For example S&P 500 Index returned 43.4% in 1958. The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. The weighted average stated interest rate on our total borrowings was 6.23% as of year-end. We attributed the bulk of the quarters NAV decline to widening credit spreads. If you experience any issues with this process, please contact us for further assistance. Were any of the follow-on was any of the follow-on capital to the portfolio companies to pad out liquidity? Crescent Capital Group Closes Second Direct Lending Fund at 2023 Crescent Capital Group LP. As of December 31, 99% of our debt investments at fair value were floating rate with a weighted average floor of 80 basis points, which compares to our 72% floating rate liability structure based on debt drawn with no floors. There are no further questions at this time. We have a large internal team which helps accelerate a portfolio company management teams decision making. Every year we ask all of our executives the question Would you recommend working with Crescent to a friend or colleague? Turning back to this quarters earnings. Robert Dodd: Hi guys. Oops! | Our team have been drawn from top tier strategy consulting practices and operating leadership roles in industry. You should only be asked to sign in once. Get the full list, Morningstar Institutional Equity Research. ", "It has been Crescents human capital that has been most valuable to us. Crescent Capital Consulting, LLC Buys iShares TIPS Bond ETF - Yahoo! And on March 7, First Eagle is conducting a special meeting of its stockholders whereby they will be asked to adopt the agreement and plan a merger. Since 1995 Crescent Capital has been supporting and building high-grade venture backed companies in Northern Ireland. Gross deployment in the fourth quarter was $46 million. Finally, for the first quarter of 2023, our Board declared a $0.41 per share quarterly cash dividend, which will be paid on April 17, 2023, to stockholders of record as of March 31, 2023. Please check your spam or junk folder just in case (310) 235-5900 And we remain well diversified across 18 industries and continue to lend almost exclusively to private equity-backed companies with 98% of our debt portfolio in sponsor-backed companies as of year-end. I would say broadly speaking, we continue to feel good about the health of the overall portfolio. We continue to believe that CCAP remains well positioned to navigate the economic and market uncertainty ahead. Get matched with a tax expert to do your taxes, https://www.businesswire.com/news/home/20230228005594/en/. At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with . Our success and reputation have been built on conservatism, ethics, passion, attention to detail, responsibility, and our belief that trust starts and ends with honesty and integrity. Operator: Thank you. We look forward to speaking with you again soon. Crescent Capital Group is headquartered in Los Angeles with offices in Boston, London, and New York. List of top Crescent Capital Portfolio Companies - CrunchBase Website by GCI. Healthcare is Crescent's largest sector by investment. Crescent has launched and fully invested the first energy-focused private equity fund in Turkey. Through our deep inhouse expertise assisting emerging and growth companies across Australia and New Zealand since 2000, we have raised over $3bn across six funds and completed more than 45 foundation investments and assisted our portfolio companies with over 150 follow-on acquisitions. I mean, whats the how are things actually trending right now? Well, its almost entirely because of a surprising July 25th twist that hardly anybodys talking about right now. What's the investment trend over time for this hub? Back then they werent called hedge funds, they were called partnerships. We thank you for your participation and ask that you please disconnect your lines. Crescent Capital Group LP ("Crescent"), a leading alternative credit investment firm, announced today the successful final close of its eighth private credit solutions fund, Crescent Credit Solutions VIII ("CCS Fund VIII"), raising $8 billion in investable capital, including targeted leverage and separately managed . Where Do Hedge Funds Stand On Crescent Capital BDC, Inc. (CCAP)? - Yahoo! Moving to the right-hand side of the page, youll see that our unitranche first lien investments have continued to become a more prominent percentage of our total portfolio, accounting for 66% of total portfolio fair value at year-end compared to 59% the year prior. In addition, our portfolio managers have responsibility for multi-asset class strategies that are constructed from each of the asset classes we manage. Diversification will not guarantee profitability or protection against loss. From cross portfolio introductions and business development, provision of consulting style support on key projects, through to assisting portfolio companies through major strategic change, the Crescent investment team has a unique blend of high end consulting and operational skill sets to support the investee companies. The bad news is, this July 25th twist is also likely to make Biden and the progressives more powerful than ever. All information contained in this website is qualified by the terms of applicable offering documents. That being said, the broader Crescent private credit platform remained active with over $800 million of capital committed to new portfolio investments during the fourth quarter and over $5.5 . Crescent Capital Partners | Private Equity Firm in Sydney Australia An investor who invested $10,000 in Warren Buffetts hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made more than $36,000 in fees from this investor). Importantly, what we consider recurring yield related investment income comprised of interest income, fixed income, amortization and unused fees was up 21% quarter-over-quarter driven by rising base rates. Venture Capital Portfolio. management team, and recent news are also included. . In addition, a reconciliation of this measure may also be found in our earnings release. The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. I would now like to turn the conference over to Dan McMahon. Access to our investment and operational team brings unparalleled support to our portfolio companies. Mr. Harari added, "Crescent has a multi-decade history of outstanding team continuity and investment focus in both public and private credit. Stock Market | Pittsburgh Post-Gazette Crescent wraps up eighth private credit fund at $8bn | PE Hub There are significant risks that should be considered and reviewed when considering an investment in real estate. The decline relates primarily to unrealized losses we took to reflect wider credit spreads in the market as volatility within the leveraged finance and equity markets continued during the fourth quarter. 2023 Crescent Capital Investments Reduced net debt by approximately $850 All data as of 12/31/2022. Crescent Capital ET. Taseko Mines Limited (AMEX:TGB) Q4 2022 Earnings Call Transcript, Smith & Nephew plc (NYSE:SNN) Q4 2022 Earnings Call Transcript. Additionally, the strength of our portfolio continues to benefit from the substantial amount of equity invested in our companies. He began his investing career at Focus Partners, LLP, a Singapore-based long/short equity hedge fund focused on Southeast Asia. We still like this investment. Crescent Capital Group LP, a leading alternative credit investment firm, announced today the successful final close of its third direct lending fund, . Get the full list, Youre viewing 10 of 31 exits. Thank you. Which companies in this hub have the most subsidiaries? With that, I will now turn it over to Gerhard. Their primary investment focus is with Northern Ireland based companies operating in the information technology, life sciences, and manufacturing sectors. This video is provided by the Australian Investment Council. 11%-Yielding Crescent Capital: Undervalued BDC With Upside Potential With deep in house expertise, we provide the support to accelerate growth creation in our portfolio companies. But I would say overall, we are pleased with the underlying performance of the portfolio. That being said, the broader Crescent private credit platform remained active with over $800 million of capital committed to new portfolio investments during the fourth quarter and over $5.5 billion for the full year. And two, the exchange ratio for the stock component of the merger consideration and the amount of cash from Crescent BDC will be determined by the respective net asset values of Crescent BDC and First Eagle BDC and customary merger adjustments two days prior to closing. Jason Breaux: Thanks, Gerhard. (310) 235-5900 The good news is, this powerful new force can help you make a lot of money even in a bear market. Consistent with Crescents track record of investing through cycles over the past 30-plus years, we believe we have constructed a portfolio that consists of companies that are adequately capitalized to address the current macroeconomic environment and have taken a proactive approach to bolstering liquidity in select situations where it may be warranted. What's the most common final funding type when companies get acquired? I.e., is your forward leverage range target changing as a result of proposed acquisition? Crescent Capital Group LP ("Crescent"), a leading alternative credit investment firm, announced today the successful final close of its eighth private credit solutions fund, Crescent Credit Solutions VIII ("CCS Fund VIII"), raising $8 billion in investable capital, including targeted leverage and separately managed . Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. Crescent Capital is an attractively priced BDC trading at a substantial 26% discount to its NAV/share. After that, there are no remaining term maturities until 2026. The presentation should be reviewed in conjunction with the companys Form 10-K filed yesterday with the SEC. 1: AUM as of 12/31/2022 and includes committed assets and employee investments in Crescent managed portfolios. Robert Dodd: Got it. Invest Money & Crypto With #Crescent | Crescent Bit Capital Crescent BDC's portfolio, at any given point in time, may be comprised of some, all or none of the asset types shown. With that, Id now like to turn it over to Jason. Sorry, no results has been found matching your query. Home - Crescent Capital Crescent Capital BDC, Inc. (NASDAQ:CCAP) Q4 2022 Earnings Call Transcript February 23, 2023. Invest NI pulls plug on new VC equity fund amid claims of earlier round In total, we closed on five add-on and several revolver and delayed draw fundings with no new portfolio company investments in the quarter. We believe that these asset classes provide our clients with opportunities to generate income while preserving capital. ", "Crescent partnered with us and assisted in achieving our growth targets. This call is being recorded on Thursday, February 23, 2023. More About us Our Portfolio at a Glance $ 1.3 B Portfolio Size (at Fair Value) 129 Portfolio Companies 90% First Lien Investments We seek to maximize the total return of our stockholders in the form of current income and capital appreciation by providing capital solutions to companies with sound business fundamentals and strong growth prospects. Or was it a more normal course of business add-ons or growth or whatever? As of year-end, consistent with the prior quarter, we had investments in four portfolio companies on nonaccrual status, representing 2.0% and 1.2% of our total debt investments at cost and fair value, respectively. Video: Melinda McGrath, CEO Australian Clinical Labs. We did intentionally delever a bit here in Q4 in anticipation of the merger. Crescent Capital Investor Profile: Portfolio & Exits | PitchBook Crescent Capital Group is a global alternative investment firm focused on below investment grade credit markets with primary strategies that include funds that invest in leveraged loans, high-yield bonds, mezzanine debt, special situations, and distressed securities. As you can see on the left-hand side of the page, over 99% was an existing senior secured first lien and unitranche investments. Crescent raised its first fund in 1992 and has consistently been a leader in the private debt market, focusing on senior secured unitranche securities and junior debt. For this period, the Company had $277.6 million in aggregate exits, sales and repayments. If Warren Buffetts hedge fund didnt generate any outperformance (i.e. Website by GCI. Use the PitchBook Platform to explore the full profile. Investors in our funds include both domestic and international pension funds and endowments.
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