Venture Capital Portfolio This means the bullish number of . Two more credit trends to highlight. The difference relates to a noncash reversal of our capital gains-based incentive fees on net realized and unrealized capital appreciation. 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. management team, and recent news are also included. Product Marketing and Business Development Director. 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. 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. 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 has launched and fully invested the first energy-focused private equity fund in Turkey. How are IPOs trending over time in this hub? That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. By providing your email address below, you are providing consent to Crescent Capital BDC, Inc. to send you the requested Investor Email Alert updates. Investors in our funds include both domestic and international pension funds and endowments. This call is being recorded on Thursday, February 23, 2023. Crescents investment success across education, services and mining technology has helped innovative Australian businesses compete on a global stage. On a GAAP basis, fourth quarter net investment income per share was $0.52. It has a well-diversified portfolio and is unique in that it also has international exposure. Jason Breaux: Sure. 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. This is basically a recipe to generate better returns than Warren Buffett is achieving himself. Im going to ask you a question that sort of relates to credit . What's the most common types of sub-organization? 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. S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. 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 . That nonrecurring income has now been replaced by recurring yield related income from Crescents originated assets. 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. $30MM Weighted Average Portfolio Company EBITDA, Disciplined portfolio construction with average position size <1% of total fair value. 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. Home - Crescent Capital Investments Earn Accelerated Returns Through Multi-Family Real Estate About Us Discover more about our company and values. We see several investors trying to strike it rich in options market by risking their entire savings. I would say broadly speaking, we continue to feel good about the health of the overall portfolio. | Crescent Capital is a Belfast based venture capital fund manager. The Crescent Capital IV Development Fund was launched amid much fanfare 18 months ago to build on the success of forerunner funds, from which some of Northern Ireland's most exciting. The fund was more than double the size of . 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. We are an equity partner that brings more than money to the relationship. We initially share this idea in October 2018 and the stock already returned more than 150%. All rights reserved. Please turn to Slides 13 and 14 of the presentation, which highlights certain characteristics of our diversified portfolio. As of December 31, 2022, Crescent Capital Group managed over $40 billion of privately originated debt investments and marketable securities. To participate please dial (877 . Along the way, I believe Biden could become one of the most powerful Presidents in history. 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. Video: Melinda McGrath, CEO Australian Clinical Labs. In addition, a reconciliation of this measure may also be found in our earnings release. Legal Notice. Get the full list, Youre viewing 5 of 21 co-investor. 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. Read More Portfolio See our recent purchases and offers. Description. For example S&P 500 Index returned 43.4% in 1958. Id also note that PIK income continues to represent a modest portion of our revenue at approximately 2% of total investment income. Turning to Slide 16. 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. Focus on Seed and Series A. Please note that Crescent Capital BDC, Inc. may be referred to as CCAP, Crescent BDC or the company throughout the call. 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. Passive Investing: Which Real Estate Strategy is Right for You. 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. 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. Win whats next. Dan McMahon: Good morning, and welcome to Crescent Capital BDC, Inc.s fourth quarter and year ended December 31, 2022 earnings conference call. Gross deployment in the fourth quarter was $46 million. 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 companys actual results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings. This recurring revenue ultimately accounted for 94% of this quarters total investment income, up from 86% in Q4 of 2021. 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. 1: AUM as of 12/31/2022 and includes committed assets and employee investments in Crescent managed portfolios. ", "Our growth strategy was perfectly aligned with Crescents. 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. We have a track record of expanding Australian businesses into Asia with over 50% of portfolio companies having an Asian presence. We attributed the bulk of the quarters NAV decline to widening credit spreads. 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 . At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with any third party. 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. 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. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. 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. Mr. Harari brings more than 15 years of investment experience to Crescent Capital. In short, a powerful new economic force is quietly building behind Joe Biden and Im confident Biden can harness this forces inevitable wave, carrying him to a LANDSLIDE re-election win. The companies continue to grow on the top line and the bottom line. As you can see on the left-hand side of the page, over 99% was an existing senior secured first lien and unitranche investments. So lets begin. 2023 Crescent Capital Group LP. Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. . We have a diverse portfolio across healthcare, industrials, financial services, technology, education and consumer brands. And it means its going to be harder than ever to hold onto any money you make. Or was it a more normal course of business add-ons or growth or whatever? Using market interest rates at year-end, weighted average interest coverage for the total portfolio was 1.9x. 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. The foundation of our success is the working relationship we have with the business owners and leadership teams we partner with. 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. Continued strong performance ratings and low nonaccrual levels. The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. Crescent Capital is an attractively priced BDC trading at a substantial 26% discount to its NAV/share. Mr. Harari added, "Crescent has a multi-decade history of outstanding team continuity and investment focus in both public and private credit. 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 . . 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. I look forward to working with our talented team of professionals to continue serving our current and prospective investors.". Get the full list, Youre viewing 10 of 31 exits. Website by GCI. For more information about Crescent Capital Group, please visit www.crescentcap.com. 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. Crescent Capital Group is headquartered in Los Angeles with offices in Boston, London, and New York. Crescent has launched and fully invested the first energy-focused private equity fund in Turkey. We look forward to speaking with you again soon. 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. For more information about Crescent. 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. 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. Please also note that past performance or market information is not a guarantee of future results. As a reminder, this call is being recorded for replay purposes. Speaking on todays call will be CCAPs President and Chief Executive Officer; Jason Breaux; Chief Financial Officer, Gerhard Lombard; and Managing Director, Henry Chung. ", "Crescent add value across business development, acquisition and enhancement activities. Do you expect to be running on a combined basis going forward? The total size of the investment portfolio is around USD 400 million which . The firm invests in companies operating in the information technology, life sciences, and manufacturing sectors. 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. Thank you. Crescent wraps up eighth private credit fund at $8bn, Investor Relations, Marketing & Communications Forum. The good news is, this powerful new force can help you make a lot of money even in a bear market. Guidance So, how did Warren Buffett manage to generate high returns and beat the market? I.e., is your forward leverage range target changing as a result of proposed acquisition? We redeployed the majority of the proceeds from this monetization activity primarily into directly originated higher spread Crescent private credit opportunities. All information contained in this website is qualified by the terms of applicable offering documents. 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. Get the full list, Morningstar Institutional Equity Research. 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. 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. Capital raised by global funds reached almost $150 billion as of 30 September, up 19 percent year over year, Private Debt Investor reported. We have consistently been able to deliver significant value-add alongside our management teams. 2023 PitchBook. Now lets shift to capitalization and liquidity. With more than 100 investment professionals and over 200 employees, the firm invests at all levels of the capital structure, with a significant focus on below investment grade credit through strategies that invest in senior bank loans, unitranche loans, high yield debt, mezzanine debt, and other private debt securities. Jason Breaux: Yes. Crescent Capital Partners is a leading Australian private equity firm. | Click 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. You must click the activation link in order to complete your subscription. Its also worth highlighting that in January, we upsized our SMBC Corporate Revolving Facility by $35 million to $385 million. For more information about Crescent. Adjusted net investment income increased 17% to $0.49 per share from $0.42 per share for the quarter ended September 30, 2022. Only logged in subscribers of this site will be able to access the shared article. Insights about top trending companies, startups, investments and M&A activities, notable investors of these companies, their. But can you give us any color on how the portfolio companies are actually performing on EBITDA or revenue or anything like that? The company assumes no obligation to update any such forward-looking statements. By providing your email address below, you are providing consent to Crescent Capital BDC, Inc. to send you the requested Investor Email Alert updates. The total size of the investment portfolio is around USD 400 million which includes hydro, wind, solar assets under operation. In addition, our portfolio managers have responsibility for multi-asset class strategies that are constructed from each of the asset classes we manage. After submitting your request, you will receive an activation email to the requested email address. Click here. Please turn to Slide 6, where youll see a summary of our results. In total, we closed on five add-on and several revolver and delayed draw fundings with no new portfolio company investments in the quarter. Taseko Mines Limited (AMEX:TGB) Q4 2022 Earnings Call Transcript, Smith & Nephew plc (NYSE:SNN) Q4 2022 Earnings Call Transcript. Operator: Thank you. You can enter your email below to get our FREE report. Your submission has been received! Warren Buffett took 25% of all returns in excess of 6 percent. And a big driver of that is that the if you look back at the historical left grid balance sheet, theyve historically had a bit higher leverage than us. Crescent has successfully helped unique Australian products become iconic brands that are loved by consumers around the world. 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. We have a large internal team which helps accelerate a portfolio company management teams decision making. The first question comes from Robert Dodd of Raymond James. This list of organizations invested in by Crescent Capital provides data on their funding history, investment activities, and acquisition trends. The shocking amount some people have saved, and why speaking with a financial advisor could help increase your returns and alleviate stress. 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. Additionally, the strength of our portfolio continues to benefit from the substantial amount of equity invested in our companies. Please check your spam or junk folder just in case Robert Dodd: Got it. 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 has achieved strong success in Financial Services, with expertise in creating value through organic growth, acquisitions and geographical expansion into Asia. Read More Well, its almost entirely because of a surprising July 25th twist that hardly anybodys talking about right now. Crescent Capital Group LP, a leading alternative credit investment firm, announced today the successful final close of its third direct lending fund, . As of December 31, 2022, Crescent Capital Group managed approximately $40 billion of privately originated debt investments and marketable securities. AirAsia plans to launch ride-hailing service in Spore, but do they stand a chance to compete? Or is that just a timing? After that, there are no remaining term maturities until 2026. 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.