Id now like to turn it over to Henry to discuss our Q4 investment activity. Crescent Capital Group Closes Third U.S. Direct Lending Fund, Raising Speaking on todays call will be CCAPs President and Chief Executive Officer; Jason Breaux; Chief Financial Officer, Gerhard Lombard; and Managing Director, Henry Chung. In addition, our portfolio managers have responsibility for multi-asset class strategies that are constructed from each of the asset classes we manage. The company assumes no obligation to update any such forward-looking statements. Crescent wraps up eighth private credit fund at $8bn | PE Hub Or is that just a timing? bdcir@crescentcap.com. Our team have been drawn from top tier strategy consulting practices and operating leadership roles in industry. Not the case? 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. 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. 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. All data as of 12/31/2022. Crescent Capital Group 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. 2023 Crescent Capital Investments Home - Crescent Capital Investments A few more updates before I turn it over to Henry. Home - Crescent Capital Investments Earn Accelerated Returns Through Multi-Family Real Estate About Us Discover more about our company and values. 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. Excuse me. Crescent Capital BDC, Inc. to Acquire Alcentra Capital Corporation Dan McMahon: Good morning, and welcome to Crescent Capital BDC, Inc.s fourth quarter and year ended December 31, 2022 earnings conference call. 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. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. Great. I believe it will make millions of Americans vastly wealthier. We provide support for founders and senior management teams to accelerate the achievement of their goals. 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%. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Crescent Point Energy with a $10.13 average price target. 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. 2009 Crescent Capital, All Rights Reserved. Use of this website is governed by the Terms and Conditions. We have raised six funds since 2000 and we are a top quartile manager on global metrics. PitchBooks data visualizations quickly surface an investors historical investmentsshowing a breakdown of activity by industry, year and region. Crescents investment activities are managed by dedicated teams focused on each of these asset classes. To participate please dial (877 . Don't have an account? KEY HIGHLIGHTS Generated significant excess cash flow of approximately $1.2 billion, driven by a strong netback asset base. Home - Crescent Capital The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. 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. Can you give us any color around that? 25+ years experience in strategy consulting, investment and business management and public company boards. 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. CCS Fund VIII Becomes Largest Capital Raise in Crescent's History. Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. 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 . In addition, a reconciliation of this measure may also be found in our earnings release. Mr. Harari brings more than 15 years of investment experience to Crescent Capital. 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. As of December 31, we managed our debt-to-equity ratio down to 1.08x from 1.11x at September 30. Crescent Capital Partners invests in companies and sectors with growth potential within Australia & New Zealand or internationally. After submitting your request, you will receive an activation email to the requested email address. This increase was driven primarily by rising base rates and higher spreads. . Our net investment income outpaced our regular dividend by $0.11 per share, which was offset by net unrealized depreciation on investments of $0.44 per share. We did intentionally delever a bit here in Q4 in anticipation of the merger. Crescent Capital BDC, Inc. Reports December 31, 2022 Financial Results At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with any third party. Please also note that past performance or market information is not a guarantee of future results. . With a reputation for delivering strong performance through a structured and disciplined approach to investment management, our team works actively alongside senior management to drive organic growth and value creation in invested companies. Crescent Capital - Investing in the future 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 Credit. 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. The bad news is, this July 25th twist is also likely to make Biden and the progressives more powerful than ever. Private Equity 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 . Jason Breaux: Sure. Gross deployment in the fourth quarter was $46 million. Investors in our funds include both domestic and international pension funds and endowments. Discover more about our company and values. Another, on your deployments in the quarter, obviously will follow on. (310) 235-5900 Crescent Capital Group Closes Third U.S. Direct Lending Fund, Raising Crescent Capital Offers A Buying Opportunity For Dividend Investors To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. 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. 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 believe that we benefit from years of experience managing below investment grade bank loans and debt securities over multiple economic and market cycles. Turning to Slide 16. Insights about top trending companies, startups, investments and M&A activities, notable investors of these companies, their Leaderboard Id also note that PIK income continues to represent a modest portion of our revenue at approximately 2% of total investment income. Earnings Call TranscriptNASDAQ:CCAPQ4 2022, Despite Joe Bidens age, raging inflation, and his dismal 45% approval level. You can sign up for additional alert options at any time. A link has been emailed to you - check your inbox. At Crescent Capital, we invest in debt securities at all levels of a companys capital structure. List of top Crescent Capital Portfolio Companies - CrunchBase Our portfolio at fair value was comprised of the following: After that, there are no remaining term maturities until 2026. Founder, Chief Executive Officer and Managing Director, Chief Financial Officer & Investment Executive, Youre viewing 10 of 67 investments. We specialize in repositioning well-located assets in emerging markets to protect investor capital and provide high yield returns. We have seen revenue growth outpace EBITDA or cash flow growth, which we would attribute largely to inflationary pressures and higher wages, labor market tightness and the like. 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 attributed the bulk of the quarters NAV decline to widening credit spreads. Between 1957 and 1966 Warren Buffetts hedge fund returned 23.5% annually after deducting Warren Buffetts 5.5 percentage point annual fees. The company has a one-year high of $10.68 and a one . Please turn to Slide 6, where youll see a summary of our results. That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. Reduced net debt by approximately $850 We believe that these asset classes provide our clients with opportunities to generate income while preserving capital. 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. Before we begin, Ill start with some important reminders. ", "Crescents practical and analytical approach enabled management to hit their goals. Offerings across the credit quality spectrum Read More The weighted average stated interest rate on our total borrowings was 6.23% as of year-end. Get matched with a tax expert to do your taxes, https://www.businesswire.com/news/home/20230228005594/en/. I mean how would the how are the operating trends doing? Warren Buffett took 25% of all returns in excess of 6 percent. Crescent Capital is a leading investor across real estate, private equity and venture capital. Thanks for the question. I would say broadly speaking, we continue to feel good about the health of the overall portfolio. We remain very excited about the acquisition as we believe the combination provides many strategic and financial benefits to the combined company. 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. 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 Our team have over 30 years experience assisting healthcare businesses accelerate growth. 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. Crescent Capital Partners | Private Equity Firm in Sydney Australia 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. 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. This has proven to be a competitive advantage, particularly in the current lending environment. If you experience any issues with this process, please contact us for further assistance. We are headquartered in Los Angeles with offices in New York, Boston, Chicago, and London. 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. More About us Our Portfolio at a Glance $ 1.3 B Portfolio Size (at Fair Value) 129 Portfolio Companies 90% First Lien Investments That nonrecurring income has now been replaced by recurring yield related income from Crescents originated assets. Our credit culture focused on preservation of capital has led to a highly diversified portfolio invested largely in the resilient industries. 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. So lets begin. Im on Slide 19. On a GAAP basis, fourth quarter net investment income per share was $0.52. Operator: Ladies and gentlemen, this does conclude our conference call for today. The presentation should be reviewed in conjunction with the companys Form 10-K filed yesterday with the SEC. Crescent is the most active Private Equity investor in industrial companies in Australia, having invested in 11 industrial businesses over the last 4 funds. Website by GCI. 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. Crescent Capital The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential.