Corporate Capital Trust Announces 2016 Financial Results
Corporate Capital Trust, a non-traded business development company sponsored and advised by CNL Financial Group and KKR, announced its operating results for 2016. Corporate Capital Trust will host its earnings, call today to discuss the results.
Highlights for 2016
• Corporate Capital Trust’s continuous offering of common stock closed to new investors on October 25, 2016. Throughout the course of the offering, the BDC sold approximately 322 million shares of common stock, raising gross proceeds of $3.4 billion, including the reinvestment of distributions. The company will continue to issue shares through our distribution reinvestment plan.
• The company’s investment portfolio, excluding short-term investments, totaled $4.4 billion and consisted primarily of senior debt and subordinated debt.
• For the year ended December 31, 2016, net investment income was approximately $210.1 million, or $0.69 per share, as compared to $176.7 million, or $0.69 per share, for the same period in 2015.
• Total cumulative return to shareholders on an initial investment of $10,000 made in June 2011, assuming the reinvestment of distributions, was 40.1 percent to $14,013 as of Dec. 31, 2016, (for an annualized return of 6.3 percent), when including sales load. Excluding sales load, the total cumulative return to shareholders was 55.7 percent to $15,570 (for an annualized return of 8.3 percent).
• Originated investments at fair value totaled approximately $2.8 billion, representing approximately 63 percent of the investment portfolio.
• During 2016, proceeds from sales of investments and principal payments totaled $1.4 billion.
• The company declared distributions of approximately $245 million, or $0.80 per share, in 2016 compared to $205 million, or $0.80 per share, in 2015. Year-to-date distributions were fully covered by taxable income available for distribution.
• Net asset value per share as of December 31, 2016, was $8.93 per share.
• Beginning Jan. 1, 2017, the subordinated incentive fee on income became subject to a total return requirement, thereby incorporating both unrealized and realized gains and losses into the calculation. This can reduce fees paid to the advisor when NAV is declining, but will never increase fees higher than what they would have been otherwise, the company said.
Joint Venture
In May 2016, Corporate Capital Trust formed a joint venture with Conway Capital LLC, an affiliate of Guggenheim Life & Annuity Company and Delaware Life Insurance Company, named Strategic Credit Opportunities Partners. CCT owns an 87.5 percent interest in SCJV, and along with Conway Capital LLC, the company agreed to provide up to $500 million in capital to the joint venture. As of December 31, 2016, SCJV had total investments at fair value of $248.6 million.
Investment Portfolio Update
The company’s investment portfolio, joint venture and total return swap portfolios consisted of investment interests in 153 companies as of December 31, 2016. The portfolio companies are diversified across multiple industries, with the largest portion invested in capital goods (20 percent), software and services (10 percent), and retailing (9 percent).
The primary investment concentration was senior debt, which represented 72 percent of the portfolio at fair value, while 80 percent of the company’s debt investments, based on fair value, featured floating interest rates, primarily based on London Interbank Offered Rate and 20 percent of the debt investments featured fixed interest rates.
Earnings Call
Corporate Capital Trust will hold its earnings call for the quarter and year ended December 31, 2016, on April 6, 2017, at 8:30 a.m., Eastern Time. To listen to the earnings call, dial 866-524-3160.
Corporate Capital Trust invests primarily in the debt of privately owned companies, with a focus on originated transactions sourced through the networks of its advisors. CNL Financial Group is a private investment management firm providing global real estate and alternative investments. KKR is a global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds.
