On November 9, 2026, CNL Strategic Capital, LLC entered into an Eighth Amended and Restated Management Agreement with its manager, CNL Strategic Capital Management, LLC. The filing details a reduction in fees for Non-Founder Shares, which will take effect on January 1, 2027.
Under the new terms, the Base Management Fee rate for Non-Founder Shares will decrease from 2.0% to 1.5%. Additionally, the Total Return Incentive Fee rate for these shares will be lowered from 20% to 15%. The filing notes that the Annual Preferred Return applicable to the Total Return Incentive Fee remains unchanged at 7%. The Non-Founder Breakpoint, which determines when the incentive fee applies, is also reduced from 8.75% to 8.235%.
In conjunction with the updates to the Management Agreement, the Manager and Levine Leichtman Strategic Capital, LLC entered into a Fourth Amended and Restated Sub-Management Agreement. This agreement outlines changes regarding the sharing of the Total Return Incentive Fee with respect to Non-Founder Shares between the Manager and the Sub-Manager.
The Management Agreement and the Sub-Management Agreement are each effective for one-year terms. They are subject to renewal by the Company’s board of directors for an unlimited number of successive one-year periods unless terminated earlier.
