Crescent Capital is a Belfast based venture capital fund manager. Jason Breaux: Thank you, Dan. Healthcare is Crescent's largest sector by investment. I look forward to working with our talented team of professionals to continue serving our current and prospective investors.". We target middle market companies located in Australia and New Zealand with enterprise values of $50m to $300m. This list of organizations invested in by Crescent Capital provides data on their funding history, investment activities, and acquisition trends. Crescent Capital Partners General Information. After submitting your request, you will receive an activation email to the requested email address. LP investments in high-growth and distressed companies in the United States and abroad. Or is that just a timing? Do you expect to be running on a combined basis going forward? A reconciliation of adjusted net investment income per share to net investment income per share, the most directly comparable GAAP financial measure can be found in the accompanying slide presentation for this call. (310) 235-5900 Realized gains and losses, we believe, is a more important metric in grading our performance than unrealized gains and losses, which has meaningfully less impact on our longer-term results. If you experience any issues with this process, please contact us for further assistance. Jason Breaux: Thanks, Gerhard. What's the most common final funding type when companies get acquired? I believe he will not only run again next year, but could win a 2nd Presidential term and by a LANDSLIDE. Im on Slide 19. All data as of 12/31/2022. Crescents investment success across education, services and mining technology has helped innovative Australian businesses compete on a global stage. You can see that the weighted average yield of income producing securities at cost increased meaningfully quarter-over-quarter from 9.5% to 10.8% on the heels of the Federal Reserves interest rate hikes and is up 330 basis points year-over-year. Get the full list, Morningstar Institutional Equity Research. The $46 million in gross deployment compares to approximately $71 million in aggregate exits, sales and repayments in the quarter, inclusively a final $8 million liquidating return of capital from our joint venture, which, as Jason noted, is now fully dissolved. 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. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. Next, CBDC Senior Loan Fund, our joint venture was formally dissolved during the fourth quarter after being largely wound down in recent quarters. We are headquartered in Los Angeles with offices in New York, Boston, Chicago, and London. The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. ", "It has been Crescents human capital that has been most valuable to us. For more information about Crescent Capital Group, please visit www.crescentcap.com. More About us Our Portfolio at a Glance $ 1.3 B Portfolio Size (at Fair Value) 129 Portfolio Companies 90% First Lien Investments We have raised six funds since 2000 and we are a top quartile manager on global metrics. Click here. The total size of the investment portfolio is around USD 400 million which . Crescent is an alternative asset manager with approximately $40 billion1of assets under management and over 210employees as of December 31,2022. 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. We believe an active engagement model is a leading indicator of strong company performance. Please turn to Slides 13 and 14 of the presentation, which highlights certain characteristics of our diversified portfolio. 1: AUM as of 12/31/2022 and includes committed assets and employee investments in Crescent managed portfolios. Video: Cameron Johnson, CEO Nucleus Network. Our focus on unitranche opportunities allows us to offer even greater certainty of execution to our private equity sponsors and enables us to enhance our yield opportunity while remaining at the top of the capital stack. Website by GCI. S&P 500 Index lost 10.8% in 1957, so Buffetts investors actually thrilled to beat the market by 20.1 percentage points in 1957. Earnings Call TranscriptNASDAQ:CCAPQ4 2022, Despite Joe Bidens age, raging inflation, and his dismal 45% approval level. In addition to equity capital, partnering with Crescent brings access to deep industry expertise and significant strategy and operational support. I would say broadly speaking, we continue to feel good about the health of the overall portfolio. Id also note that PIK income continues to represent a modest portion of our revenue at approximately 2% of total investment income. This serves to drive growth and performance improvement, accelerating value creation for shareholders. Active vs. 2009 Crescent Capital, All Rights Reserved. Not the case? Additionally, the strength of our portfolio continues to benefit from the substantial amount of equity invested in our companies. His investors didnt mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. 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. Since 1995 Crescent Capital has been supporting and building high-grade venture backed companies in Northern Ireland. Crescent Capital Partners is a leading Australian private equity firm. LOS ANGELES, February 28, 2023--(BUSINESS WIRE)--Crescent Capital Group LP, a leading alternative credit investment firm, announced today that Jonathan Harari has joined the company as Global Head of its Investor Solutions Group. Legal Notice. This website is neither an offer to sell nor a solicitation of an offer to buy securities. Shares added by 1.69% iShares Russell 1000. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. The Firm believes that these high-yield assets will deliver strong cash-flow focused returns for investors. A couple of reminders as it relates to the transaction. For the year ended December 31, 2022, the Company invested $308.0 million across 20 new portfolio companies, 31 existing portfolio companies and several follow-on revolver and delayed draw fundings. InterContinental Hotels Group PLC (NYSE:IHG) Q4 2022 Earnings Call Transcript Vista Energy, S.A.B. Good morning, everyone, and thank you for joining our earnings call. 2023 Crescent Capital Group LP. bdcir@crescentcap.com. This is basically a recipe to generate better returns than Warren Buffett is achieving himself. What's the investment trend over time for this hub? 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. The fund was more than double the size of . Crescent Capital BDC, Inc. (NASDAQ: CCAP) was in 6 hedge funds' portfolios at the end of the third quarter of 2020. Crescent has launched and fully invested the first energy-focused private equity fund in Turkey. Gerhard Lombard: Thanks, Henry, and good morning, everyone. With that, I will now turn it over to Gerhard. 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. KEY HIGHLIGHTS Generated significant excess cash flow of approximately $1.2 billion, driven by a strong netback asset base. 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. As a member of the Australian Investment Council, we are bound by a set of member standards including the Australian Investment Council Code of Conduct, as well as responsible investment and valuation guidelines. Gross deployment in the fourth quarter was $46 million. Ill provide some fourth quarter and full year highlights, touch on our current portfolio and positioning and then turn it over to Henry to review our recent activity in more detail. This website must be read in conjunction with the applicable offering documents or Private Placement Memorandum in order to understand fully all of the implications and risks of investing in real estate and a copy of the offering documents must be available to you in connection with any offering. Net realizations of $26 million in the fourth quarter, coupled with unrealized mark-to-market losses on our investments ultimately led to our total investment portfolio, holding roughly steady at approximate fair value of $1.3 billion as of December 31, 2022, down approximately $30 million quarter-over-quarter. Jason reviewed several metrics related to our portfolio. . In this report, "we," "us," "our" and "Company" refer to Crescent Capital BDC, Inc. and its consolidated subsidiaries. Get matched with a tax expert to do your taxes, https://www.businesswire.com/news/home/20230228005594/en/. bdcir@crescentcap.com. Don't have an account? For example S&P 500 Index returned 43.4% in 1958. Our GAAP earnings per share or net increase in net assets resulting from operations for the fourth quarter of 2022 was $0.08, which compares to negative $0.08 per share for the prior quarter. Crescent Capital is a leading investor across real estate, private equity and venture capital. 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. Something went wrong while submitting the form. Mr. Harari added, "Crescent has a multi-decade history of outstanding team continuity and investment focus in both public and private credit. How Crescent invests Crescent began life in 1991, when managing partners Attanasio and Jean-Marc Chapus established Crescent Capital Corp. PitchBooks data visualizations quickly surface an investors historical investmentsshowing a breakdown of activity by industry, year and region. That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. LOS ANGELES, NEW YORK & BOSTON--(BUSINESS WIRE)--Crescent Capital Group LP, a leading alternative credit investment firm, announced today the successful final close of its second direct lending . Crescent is the most active Private Equity investor in industrial companies in Australia, having invested in 11 industrial businesses over the last 4 funds. After submitting your request, you will receive an activation email to the requested email address. Private Equity Portfolio. . Website by GCI. You can get rich by returning 20% per year and compounding that for several years. Crescent has won the M&A Acquisition Finance Deal of the Year 2016 Award in Turkey, which represents the longest tenor fully non-recourse senior debt financing in Turkish renewables together with the first sharia-compliant mezzanine facility in the sector. Home - Crescent Capital Investments Earn Accelerated Returns Through Multi-Family Real Estate About Us Discover more about our company and values. For this period, the Company had $277.6 million in aggregate exits, sales and repayments. Our net asset value per share ended the year at $19.83, down 1.6% as compared to the prior quarter. Please turn to Slide 15 where we highlight our recent activity. ", "Crescent brings a laser light focus on the things that drive value to our business.". Please check your spam or junk folder just in case Operator: Good afternoon, ladies and gentlemen, and welcome to the Q4 2022 Crescent Capital BDC, Inc. Earnings Conference Call. Insights about top trending companies, startups, investments and M&A activities, notable investors of these companies, their Leaderboard 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. CCS Fund VIII Becomes Largest Capital Raise in Crescent's History. Turning to Slide 16. SLC Fixed Income portfolios qualify as sustainable As of December 31, 2022 Key differentiators Experienced teams with deep private credit expertise Our investment teams have specialized in private debt for more than 40 years, offering the necessary skills to navigate a nuanced asset class. Excuse me. If Warren Buffetts hedge fund didnt generate any outperformance (i.e. Your submission has been received! Well, its almost entirely because of a surprising July 25th twist that hardly anybodys talking about right now. Series A, Seed, Private Equity), Average of the Crunchbase Ranks of the organizations in this hub, Organization Name: Name of the Organization, Total Funding Amount: Total amount raised across all funding rounds, CB Rank (Organization): Algorithmic rank assigned to the top 100,000 most active Organizations, Trend Score (30 Days): Movement in Rank over the last 30 days using a score from -10 to 10, Total number of funding rounds associated with this hub, Total funding amount raised across all funding rounds, Total number of acquisitions made by organizations in the hub, Announced Date: Date that the Funding Round was publicly announced, Organization Name: Name of the organization that got funded, Transaction Name: Auto-generated name of transaction (e.g. 87% in this quarter were raising one or two, so it appears pretty stable. Crescent Capital is a Belfast based venture capital fund manager. 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. We did intentionally delever a bit here in Q4 in anticipation of the merger. That means much bigger government. Focus on Seed and Series A. We ended the year with nearly $1.3 billion of investments at fair value across 129 portfolio companies with an average investment size of less than 1% of the total portfolio. This dynamic is evidenced by our internal portfolio ratings at the end of the fourth quarter, largely consistent with prior quarters with 87% of the portfolio rated 1 or 2, our highest rating categories. And then one more, if I can. All information contained in this website is qualified by the terms of applicable offering documents. Comments made over the course of this conference call and webcast may contain forward-looking statements and are subject to risks and uncertainties. Please turn to Slide 6, where youll see a summary of our results. We believe that we benefit from years of experience managing below investment grade bank loans and debt securities over multiple economic and market cycles. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. 2023 PitchBook. We believe this is an important distinction to highlight for shareholders in a volatile market environment. Can you give us any color around that? Which investors participated in the most funding rounds within this hub? The good news is, this powerful new force can help you make a lot of money even in a bear market. Crescent BDC and Alcentra Capital will be holding a joint conference call to discuss the transaction on Tuesday, August 13, 2019 at 1:15 p.m. PT / 4:15 p.m. Great. Passive Investing: Which Real Estate Strategy is Right for You. 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. He most recently served as Executive Vice President at PIMCO based in New York City, where he led business development across large corporate pensions, family offices, endowments, foundations and healthcare institutions. 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. Wed be happy to take your questions, and please understand that we may be limited in some answers due to the ongoing First Eagle transaction. 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. This situates us well to benefit from increases in base rates above our average floors as is the case this quarter with continued growth in our interest income line item. Crescent has successfully helped unique Australian products become iconic brands that are loved by consumers around the world. Two more credit trends to highlight. There are no further questions at this time. Average Retirement Savings By Age: Are You Normal? 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. | 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. For more information about Crescent. To participate please dial (877 . Crescent Credit Solutions VIII's backers include insurance companies, pension funds, sovereign wealth funds, financial institutions, and multi-employer plans. Crescent Capital Investments, LLC is a privately held investment company that focuses on acquiring and managing opportunistic and value-add multi-family properties. Crescent Capital is a leading investor across . Please also note that past performance or market information is not a guarantee of future results. We still like this investment. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. You can sign up for additional alert options at any time. You must click the activation link in order to complete your subscription. S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. 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. Robert Dodd: Got it. Henry Chung: Thanks, Jason. Use of this website is governed by the Terms and Conditions. Henry? 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. Robert Dodd: Hi guys. One, the Boards of Directors of Crescent BDC and First Eagle BDC have each unanimously approved the transaction. It has a well-diversified portfolio and is unique in that it also has international exposure. 2023 Crescent Capital Group LP. At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with any third party. Im going to ask you a question that sort of relates to credit . 30+ years experience in operating roles and M&A, 20+ years in healthcare sector including private equity investments, 20 years experience in strategy consulting, private equity and banking, 25+ years experience in financial management and accounting, 15 years experience in strategy consulting and private equity. If you experience any issues with this process, please contact us for further assistance. Investing in the future of finance, education, SaaS, logistics, and more. 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. Access to our investment and operational team brings unparalleled support to our portfolio companies. Its also worth highlighting that in January, we upsized our SMBC Corporate Revolving Facility by $35 million to $385 million. As of year-end, this GAAP expense accrual has been fully reversed. For more information about Crescent. We take great pride in building long term partnerships with our investors based on an established reputation for delivering consistently strong performance. Please go ahead. Crescent Credit. Our team have been drawn from top tier strategy consulting practices and operating leadership roles in industry. At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with any third party. ", "Crescent partnered with us and assisted in achieving our growth targets. Click As of December 31, 2022, Crescent Capital Group managed over $40 billion of privately originated debt investments and marketable securities. Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. Use of this website is governed by the Terms and Conditions. Id now like to turn it over to Henry to discuss our Q4 investment activity. Net realized losses were less than $0.05 per share. And it means its going to be harder than ever to hold onto any money you make. Crescent Capital is a Belfast based venture capital fund manager We immerse ourselves in your business Experience With our experience and knowledge we can unlock the full potential of your business. This list of organizations invested in by Crescent Capital provides data on their funding history, investment activities, and acquisition trends. I will turn the call back to Jason Breaux for closing remarks. 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. It is for information purposes only and addresses accredited investors; such as wealth managers, family offices, and high-net-worth individuals. While the higher rate environment is certainly beneficial from an earnings perspective, we are also cognizant of the fact that it is generally correlated with a slower U.S. economy which together can create more stress in 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 . To reiterate Henrys comments, we prioritize delevering during Q4 in advance of the close of the First Eagle acquisition. Terms & Conditions 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. A few more updates before I turn it over to Henry. 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. 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. Win whats next. Please go ahead. 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. LOS ANGELES, February 28, 2023--Crescent Capital Group LP, a leading alternative credit investment firm, announced today that Jonathan Harari has joined the company as Global Head of its Investor . 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. Venture Capital Portfolio Crescent Capital is an attractively priced BDC trading at a substantial 26% discount to its NAV/share. We look forward to speaking with you again soon. We are proud to have globally leading NPS scores with our executive partners. Jason Breaux: Okay. He launched his hedge fund in 1956 with $105,100 in seed capital. Operator: Thank you. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. Robert Dodd: Got it. In a free sample issue of our monthly newsletter we analyzed Warren Buffetts stock picks covering the 1999-2017 period and identified the best performing stocks in Warren Buffetts portfolio. Acting as a first-mover, we put together innovative financing structures and investment vehicles creating value for our institutional investors. Powered by Investor Host, Multi-Family & Commercial Property Investing, Understanding How Real Estate Syndications Work in Practice, The Tax Benefits of Investing in Multifamily Real Estate. We provide support for founders and senior management teams to accelerate the achievement of their goals. 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. Crescent Credit Solutions VIII's backers include insurance companies, pension funds, sovereign wealth funds . The team brings together complementary backgrounds in structured finance, private equity, law, engineering, and project development, with more than 80 years of direct financing and investment expertise. Mr. Harari brings more than 15 years of investment experience to Crescent Capital. Get the full list, Youre viewing 10 of 31 exits. The company assumes no obligation to update any such forward-looking statements. At Crescent Capital, we invest in debt securities at all levels of a companys capital structure. Investors in our funds include both domestic and international pension funds and endowments. Offerings across the credit quality spectrum The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. If youre looking for capital and an active partner to accelerate the growth of your business or thinking about exiting by bringing in new investors, please feel free to contact me by phone or email to find out more. The firm invests in companies operating in the information technology, life sciences, and manufacturing sectors. 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. Crescent Capital BDC, Inc. (NASDAQ:CCAP) Q4 2022 Earnings Call Transcript February 23, 2023. The company's 90% portfolio is performing above expectations, while 89% of its portfolio. Our adjusted net investment income per share of $0.49 for the fourth quarter of 2022 compares to $0.42 per share for the prior quarter and $0.43 per share for the fourth quarter of 2021. As of December 31, we managed our debt-to-equity ratio down to 1.08x from 1.11x at September 30.