Crescent Capital BDC, Inc. Reports December 31, 2022 Financial Results It is ideal for investors looking for capital security.Open to Asia , Europe , America ,and Africa on Investment / Financial Plan Portfolio Office Customer Support Hours: Monday - Sundays The company has a one-year high of $10.68 and a one . Get the full list, Youre viewing 10 of 31 exits. $30MM Weighted Average Portfolio Company EBITDA, Disciplined portfolio construction with average position size <1% of total fair value. Guidance Good morning, everyone, and thank you for joining our earnings call. As you can see on the right-hand side of the slide, we have a low level of debt maturities over the next few years with $150 million maturity related to our 5.95% unsecured notes in July 2023. Actually Warren Buffett failed to beat the S&P 500 Index in 1958, returned only 40.9% and pocketed 8.7 percentage of it as fees. Venture Capital 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. 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. It is for information purposes only and addresses accredited investors; such as wealth managers, family offices, and high-net-worth individuals. Well, its almost entirely because of a surprising July 25th twist that hardly anybodys talking about right now. We have a diverse portfolio across healthcare, industrials, financial services, technology, education and consumer brands. Jason Breaux: Hey Robert, its Jason. Crescent Capital Partners General Information. Crescent Capital focuses on acquiring multi-family real estate in high-growth secondary and tertiary markets throughout the Sun Belt. Using market interest rates at year-end, weighted average interest coverage for the total portfolio was 1.9x. This is basically a recipe to generate better returns than Warren Buffett is achieving himself. The difference relates to a noncash reversal of our capital gains-based incentive fees on net realized and unrealized capital appreciation. We remain very excited about the acquisition as we believe the combination provides many strategic and financial benefits to the combined company. If Warren Buffetts hedge fund didnt generate any outperformance (i.e. Do you expect to be running lower leverage than was the case to present historically? 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 . . At December 31, our stockholders equity was $613 million, resulting in net asset value per share of $19.83 as compared to $623 million or $20.16 per share last quarter and $652 million or $21.12 per share at December 31, 2021. I believe he will not only run again next year, but could win a 2nd Presidential term and by a LANDSLIDE. We believe this is an important distinction to highlight for shareholders in a volatile market environment. After that, there are no remaining term maturities until 2026. This was by design as we believe it is prudent to prioritize deleveraging in advance of the First Eagle acquisition. Operator: Ladies and gentlemen, this does conclude our conference call for today. Earnings Call TranscriptNASDAQ:CCAPQ4 2022, Despite Joe Bidens age, raging inflation, and his dismal 45% approval level. (310) 235-5900 The companies continue to grow on the top line and the bottom line. 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? And with that, Id like to turn it back to Jason for closing remarks. Two more credit trends to highlight. WhatsApp acquired by Facebook), Total number of people associated with this hub, Full Name: First and last name of a Person, Primary Organization: The organization associated to the person's primary job, Primary Job Title: The person's primary job title, CB Rank (Person): Algorithmic rank assigned to the top 100,000 most active People, Total amount raised at IPO of all the organizations associated with this hub, Median amount raised at IPO of all the organizations associated with this hub, Total valuation at IPO of all the organizations associated with this hub, Median valuation at IPO of all the organizations associated with this hub, Average date at which organizations in this hub went public, Percentage of organizations in this hub that have removed their stock from the stock exchange. By providing your email address below, you are providing consent to Crescent Capital BDC, Inc. to send you the requested Investor Email Alert updates. Crescent Capital - Investing in the future 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. The firm invests in companies operating in the information technology, life sciences, and manufacturing sectors. Investing in the future of finance, education, SaaS, logistics, and more. | The presentation should be reviewed in conjunction with the companys Form 10-K filed yesterday with the SEC. We are an equity partner that brings more than money to the relationship. Crescent Capital is an attractively priced BDC trading at a substantial 26% discount to its NAV/share. Our team have over 30 years experience assisting healthcare businesses accelerate growth. The obvious, I mean, how you gave the interest coverage based on year-end rates. Jason reviewed several metrics related to our portfolio. The foundation of our success is the working relationship we have with the business owners and leadership teams we partner with. 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. Crescent Capital is unique in its ability and track record of building out businesses from a standing start, internally and in partnership with management teams. bdcir@crescentcap.com. Crescent is an alternative asset manager with approximately $40 billion1of assets under management and over 210employees as of December 31,2022. Warren Buffett has been investing and compounding for at least 65 years. 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. Sun Life-backed Crescent targets $6bn for two private debt funds Gerhard Lombard: Thanks, Henry, and good morning, everyone. "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. | Can you give us any color around that? Please also note that past performance or market information is not a guarantee of future results. We specialize in repositioning well-located assets in emerging markets to protect investor capital and provide high yield returns. I mean how would the how are the operating trends doing? Crescent Capital's shares are likely to rebound, as fundamental factors don't support the downtrend. As of year-end, this GAAP expense accrual has been fully reversed. Crescent Capital is a leading investor across . PitchBooks data visualizations quickly surface an investors historical investmentsshowing a breakdown of activity by industry, year and region. To participate please dial (877 . Crescent Capital Group Closes Third U.S. Direct Lending Fund, Raising Founded in 1995, Crescent Capital is a venture capital firm based in Belfast, United Kingdom. Now lets shift to capitalization and liquidity. Shares added by 1.69% iShares Russell 1000. Operator: Thank you. de C.V. (NYSE:VIST) Q4 2022 Earnings Call Transcript, TriMas Corporation (NASDAQ:TRS) Q4 2022 Earnings Call Transcript, Tennant Company (NYSE:TNC) Q4 2022 Earnings Call Transcript. Crescent has launched and fully invested the first energy-focused private equity fund in Turkey. InterContinental Hotels Group PLC (NYSE:IHG) Q4 2022 Earnings Call Transcript Vista Energy, S.A.B. ", "Our growth strategy was perfectly aligned with Crescents. Crescent Capital Group The fund was more than double the size of . This recurring revenue ultimately accounted for 94% of this quarters total investment income, up from 86% in Q4 of 2021. Our credit culture focused on preservation of capital has led to a highly diversified portfolio invested largely in the resilient industries. For over 30 years, the firm has focused on below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, and private senior, unitranche, and junior debt securities. 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. Angel, Fund of Funds, Venture Capital), Median number of investments made by investors in this hub, Median number of lead investments made by investors in this hub, Announced Date: Date the acquisition was announced, Acquirer Name: Name of the acquiring organization, Transaction Name: Auto-generated name of transaction (e.g. Which investors participated in the most funding rounds within this hub? The all time high for this statistics is 5. Venture Capital Portfolio. 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. Passive Investing: Which Real Estate Strategy is Right for You. Crescents track record is successfully managing through multiple economic and market cycles, provides us with significant and relevant experience navigating what could be a challenging environment in 2023 and beyond. Access to our investment and operational team brings unparalleled support to our portfolio companies. ET. Acting as a first-mover, we put together innovative financing structures and investment vehicles creating value for our institutional investors. Video: Matt Courtney, CEO Construction Sciences. List of top Crescent Capital Portfolio Companies - CrunchBase 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. 10-K: CRESCENT CAPITAL BDC, INC. - MarketWatch Additionally, the strength of our portfolio continues to benefit from the substantial amount of equity invested in our companies. Mr. Harari added, "Crescent has a multi-decade history of outstanding team continuity and investment focus in both public and private credit. Crescent Capital Consulting, LLC Buys iShares TIPS Bond ETF - Yahoo! 2023 PitchBook. For more information about Crescent Capital Group, please visit www.crescentcap.com. Crescents investment success across education, services and mining technology has helped innovative Australian businesses compete on a global stage. Crescent Capital Partners | Private Equity Firm in Sydney Australia Private Equity Portfolio. We believe that these asset classes provide our clients with opportunities to generate income while preserving capital. Active vs. The bad news is, this July 25th twist is also likely to make Biden and the progressives more powerful than ever. The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. Please turn to Slide 6, where youll see a summary of our results. Crescent Capital Group Closes Eighth Credit Solutions Fund, Raising $8 Crescent Capital You can enter your email below to get our FREE report. Terms & Conditions Crescent Capital BDC, Inc. (NASDAQ:CCAP) Q4 2022 Earnings Call Transcript February 23, 2023. 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. Net realized losses were less than $0.05 per share. Jason Breaux: Sure. We initially share this idea in October 2018 and the stock already returned more than 150%. Average Retirement Savings By Age: Are You Normal? We still like this investment. Website by GCI. There are no further questions at this time. That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. Please go ahead. Wed like to thank all of you for your continued support and time today. 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. Crescent Capital Group Closes Third U.S. Direct Lending Fund, Raising More About us Our Portfolio at a Glance $ 1.3 B Portfolio Size (at Fair Value) 129 Portfolio Companies 90% First Lien Investments The firm seeks to invest in middle-market companies across Australia and New Zealand with a focus on the industrial, financial services, healthcare, consumer brands, technology, and education sectors. First, we are targeting the closing of our announced merger with First Eagle BDC this quarter. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. Please note that Crescent Capital BDC, Inc. may be referred to as CCAP, Crescent BDC or the company throughout the call. But can you give us any color on how the portfolio companies are actually performing on EBITDA or revenue or anything like that? to generate high returns in the 20% to 30% range. The total size of the investment portfolio is around USD 400 million which . Crescent Capital is a Belfast based venture capital fund manager And with that, operator, please open the line for questions. Turning to Slide 16. Robert Dodd: Got it. Im on Slide 19. 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. 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. Legal Notice. So, how did Warren Buffett manage to generate high returns and beat the market? Video: Paul Wappett, CEO Australian Institute of Business. The company believes that adjusted NII per share provides useful information to investors regarding financial performance because its one method the company uses to measure its financial condition and results of operations. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Jason Breaux: Yes. This call is being recorded on Thursday, February 23, 2023. March 29-30, 2023 Convene, 117 W 46th St, New York, April 19-20, 2023 Convene, 117 W 46th St, New York, May 17-18, 2023 Hilton Tower Bridge, London, May 23-24, 2023 Convene 117 West 46th Street, New York, Get limited access to our industry news, analysis and data, plus regular email updates. Get matched with a tax expert to do your taxes, https://www.businesswire.com/news/home/20230228005594/en/. Video: Melinda McGrath, CEO Australian Clinical Labs. Get the full list, Youre viewing 4 of 6 team members. Importantly, we generated net realized gains for the full year 2022, delivering positive realized gains in excess of our losses. 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. Crescent Point Energy (CPG) Receives a Buy from BMO Capital 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. Crescent Capital is a Belfast based venture capital fund manager. Offerings across the credit quality spectrum Speaking on todays call will be CCAPs President and Chief Executive Officer; Jason Breaux; Chief Financial Officer, Gerhard Lombard; and Managing Director, Henry Chung. Thank you again, everyone for your interest and support of CCAP. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. 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. Networking We provide expertise and exposure to a network of relevant business contacts. Gross deployment in the fourth quarter was $46 million. 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. Crescent Capital BDC, Inc. (NASDAQ:CCAP) Q4 2022 Earnings Call Transcript, How to Best Use Insider Monkey to Increase Your Returns, 6 Things You Didn't Know About Hedge Funds. 87% in this quarter were raising one or two, so it appears pretty stable. Henry? 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 see our role as working on the business, helping accelerate business decisions by providing capital, the consulting toolkit and done it before experience. You can sign up for additional alert options at any time. Adjusted net investment income increased 17% to $0.49 per share from $0.42 per share for the quarter ended September 30, 2022. And it means its going to be harder than ever to hold onto any money you make. Crescent Capital BDC, Inc. to Acquire Alcentra Capital Corporation In particular, in the past 15 years Crescent has been the most active private equity manager in healthcare in Australia. 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. With deep in house expertise, we provide the support to accelerate growth creation in our portfolio companies. Heres an airasia flight discount BigPay users can benefit from for 2023, High Airfares Are Here to Stay, AirAsias Fernandes Says. CCS Fund VIII Becomes Largest Capital Raise in Crescent's History. This website is neither an offer to sell nor a solicitation of an offer to buy securities. 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. 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. As of December 31, 2021, Crescent Capital Group managed approximately $38 billion of privately originated debt investments and marketable securities. For the fourth quarter, over 99% of our total debt investments at fair value made full scheduled principal and interest payments. (310) 235-5900 What's the investment trend over time for this hub? Great. We have raised six funds since 2000 and we are a top quartile manager on global metrics. I would say broadly speaking, we continue to feel good about the health of the overall portfolio. Video: Cameron Johnson, CEO Nucleus Network. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. Register now to read this article and more for free. Crescent Capital BDC, Inc. - Investor Relations Product Marketing and Business Development Director. 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. Continued strong performance ratings and low nonaccrual levels. The total size of the investment portfolio is around USD 400 million which includes hydro, wind, solar assets under operation. Please turn to Slide 15 where we highlight our recent activity. For more information about Crescent. At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with any third party. That would have been 9.35% in hedge fund fees. Your submission has been received! 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 has achieved strong success in Financial Services, with expertise in creating value through organic growth, acquisitions and geographical expansion into Asia. These are the top 5 holdings of Crescent Capital Consulting, LLC iShares Core S&P 500 ETF ( IVV) - 140,585 shares, 11.05% of the total portfolio. Click here. This means the bullish number of . ", "Crescent brings a laser light focus on the things that drive value to our business.". Don't have an account? Thank you, operator. 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. Something went wrong while submitting the form. I believe it will make millions of Americans vastly wealthier. This video is provided by the Australian Investment Council. ", "It has been Crescents human capital that has been most valuable to us. We initially share this idea in October 2018 and the stock already returned more than 150%. 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. We have consistently been able to deliver significant value-add alongside our management teams. 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. Crescent Capital Investments, LLC is a privately held investment company that focuses on acquiring and managing opportunistic and value-add multi-family properties. We provide support for founders and senior management teams to accelerate the achievement of their goals. Crescent Capital is a Belfast based venture capital fund manager. Their primary investment focus is with Northern Ireland based companies operating in the information technology, life sciences, and manufacturing sectors.