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. For this period, the Company had $277.6 million in aggregate exits, sales and repayments. Operator: Good afternoon, ladies and gentlemen, and welcome to the Q4 2022 Crescent Capital BDC, Inc. Earnings Conference Call. Guidance As of December 31, 2022, Crescent Capital Group managed over $40 billion of privately originated debt investments and marketable securities. Next, CBDC Senior Loan Fund, our joint venture was formally dissolved during the fourth quarter after being largely wound down in recent quarters. Crescent has won the M&A Acquisition Finance Deal of the Year 2016 Award in Turkey, which represents the longest tenor fully non-recourse senior debt financing in Turkish renewables together with the first sharia-compliant mezzanine facility in the sector. You talked about, obviously, youve lowered leverage ahead of that acquisition. Our team have been drawn from top tier strategy consulting practices and operating leadership roles in industry. Click here. Acting as a first-mover, we put together innovative financing structures and investment vehicles creating value for our institutional investors. 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. Jason Breaux: Yes. ", "Crescent add value across business development, acquisition and enhancement activities. There are significant risks that should be considered and reviewed when considering an investment in real estate. ", "Crescent brings a laser light focus on the things that drive value to our business.". Please turn to Slide 6, where youll see a summary of our results. 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. 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. Diversification will not guarantee profitability or protection against loss. Investors in our funds include both domestic and international pension funds and endowments. Gerhard will then review our financial performance during the fourth quarter. Crescent Capital is a Belfast based venture capital fund manager. We target middle market companies located in Australia and New Zealand with enterprise values of $50m to $300m. Which investors participated in the most funding rounds within this hub? His investors didnt mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. Something went wrong while submitting the form. Crescent Capital is a leading investor across . We have a diverse portfolio across healthcare, industrials, financial services, technology, education and consumer brands. 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. 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. We did intentionally delever a bit here in Q4 in anticipation of the merger. Capital raised by global funds reached almost $150 billion as of 30 September, up 19 percent year over year, Private Debt Investor reported. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. How Crescent invests Crescent began life in 1991, when managing partners Attanasio and Jean-Marc Chapus established Crescent Capital Corp. 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. Video: Paul Wappett, CEO Australian Institute of Business. Yesterday, after the market closed, the company issued its earnings press release for the fourth quarter and year ended December 31, 2022, and posted a presentation to the IR Section of its website at www.crescentbdc.com. After that, there are no remaining term maturities until 2026. Do you expect to be running lower leverage than was the case to present historically? 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. 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. 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. 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. Crescent has achieved strong success in Financial Services, with expertise in creating value through organic growth, acquisitions and geographical expansion into Asia. Taseko Mines Limited (AMEX:TGB) Q4 2022 Earnings Call Transcript, Smith & Nephew plc (NYSE:SNN) Q4 2022 Earnings Call Transcript. We take great pride in building long term partnerships with our investors based on an established reputation for delivering consistently strong performance. You can sign up for additional alert options at any time. The company has a one-year high of $10.68 and a one . Because were invested in a largely first lien and unitranche focused portfolio, having largely rotated out of legacy Alcentra names and our broadly-syndicated bank loan joint venture, we expect to generate a high quality of top line revenue, primarily consisting of recurring scheduled interest income. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. What's the most common types of sub-organization? Video: Melinda McGrath, CEO Australian Clinical Labs. Offerings across the credit quality spectrum Thanks for the question. After submitting your request, you will receive an activation email to the requested email address. All rights reserved. bdcir@crescentcap.com. 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. 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. For more information about Crescent. 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. This website must be read in conjunction with the applicable offering documents or Private Placement Memorandum in order to understand fully all of the implications and risks of investing in real estate and a copy of the offering documents must be available to you in connection with any offering. Please turn to Slides 13 and 14 of the presentation, which highlights certain characteristics of our diversified portfolio. And with that, operator, please open the line for questions. Every year we ask all of our executives the question Would you recommend working with Crescent to a friend or colleague? I would say broadly speaking, we continue to feel good about the health of the overall portfolio. Oops! A couple more worth highlighting. 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 has an active partnership ethos, which is a highly structured and disciplined approach to portfolio management and hands-on value creation. 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 "Crescent were willing to invest initially and on a continued basis to maintain our technologically leadership position. A couple of reminders as it relates to the transaction. We remain very excited about the acquisition as we believe the combination provides many strategic and financial benefits to the combined company. Thank you again, everyone for your interest and support of CCAP. The good news is, this powerful new force can help you make a lot of money even in a bear market. Now lets shift to capitalization and liquidity. 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. If you experience any issues with this process, please contact us for further assistance. ", "Crescent partnered with us and assisted in achieving our growth targets. The fund was more than double the size of . The presentation should be reviewed in conjunction with the companys Form 10-K filed yesterday with the SEC. Along the way, I believe Biden could become one of the most powerful Presidents in history. ", "I strongly recommend working in partnership with Crescent Capital. As of December 31, 2021, Crescent Capital Group managed approximately $38 billion of privately originated debt investments and marketable securities. The company assumes no obligation to update any such forward-looking statements. 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. And then one more, if I can. Our adjusted net investment income per share of $0.49 for the fourth quarter of 2022 compares to $0.42 per share for the prior quarter and $0.43 per share for the fourth quarter of 2021. Get our editors daily picks straight in your inbox! A few more updates before I turn it over to Henry. Privacy Policy In our view, our long-term track record of strong credit performance and NAV stability since inception demonstrates the merits of our proven investment process as we work to deliver attractive results to our shareholders. We will not be outlining additional details of the transaction on this call today, and we direct any interest investors to the proxy statement that was filed in January. As you can see on the left-hand side of the page, over 99% was an existing senior secured first lien and unitranche investments. Thank you! In total, we closed on five add-on and several revolver and delayed draw fundings with no new portfolio company investments in the quarter. You must click the activation link in order to complete your subscription. 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. Do you expect to be running on a combined basis going forward? Crescent Capital focuses on acquiring multi-family real estate in high-growth secondary and tertiary markets throughout the Sun Belt. The companies continue to grow on the top line and the bottom line. Our investment portfolio continues to consist primarily of senior secured first lien and unitranche first lien loans, collectively representing 90% of the portfolio at fair value, up from 89% in the prior quarter. 30+ years experience in operating roles and M&A, 20+ years in healthcare sector including private equity investments, 20 years experience in strategy consulting, private equity and banking, 25+ years experience in financial management and accounting, 15 years experience in strategy consulting and private equity. Product Marketing and Business Development Director. Our net asset value per share ended the year at $19.83, down 1.6% as compared to the prior quarter. So lets begin. What's the investment trend over time for this hub? Between 1957 and 1966 Warren Buffetts hedge fund returned 23.5% annually after deducting Warren Buffetts 5.5 percentage point annual fees. AirAsia plans to launch ride-hailing service in Spore, but do they stand a chance to compete? "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. I will turn the call back to Jason Breaux for closing remarks. This recurring revenue ultimately accounted for 94% of this quarters total investment income, up from 86% in Q4 of 2021. (310) 235-5900 Well, its almost entirely because of a surprising July 25th twist that hardly anybodys talking about right now. Crescent is an alternative asset manager with approximately $40 billion1of assets under management and over 210employees as of December 31,2022. We are headquartered in Los Angeles with offices in New York, Boston, Chicago, and London. 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. I mean, whats the how are things actually trending right now? Discover more about our company and values. One, the Boards of Directors of Crescent BDC and First Eagle BDC have each unanimously approved the transaction. View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005594/en/, Mendel CommunicationsBill Mendel, +1-212-397-1030bill@mendelcommunications.com. Or is that just a timing? How are IPOs trending over time in this hub? S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. Its also worth highlighting that in January, we upsized our SMBC Corporate Revolving Facility by $35 million to $385 million. So, how did Warren Buffett manage to generate high returns and beat the market? 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 . Weve generated significant investment income in the form of fees, dividends and accelerated amortization of OID from the Alcentra portfolio over close to the last two years having realized 136% of our cost basis with approximately $22 million of unrealized value remaining. For the fourth quarter, over 99% of our total debt investments at fair value made full scheduled principal and interest payments. 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%. 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. You must click the activation link in order to complete your subscription. Founder, Chief Executive Officer and Managing Director, Chief Financial Officer & Investment Executive, Youre viewing 10 of 67 investments. Mr. Harari brings more than 15 years of investment experience to Crescent Capital. Please note that Crescent Capital BDC, Inc. may be referred to as CCAP, Crescent BDC or the company throughout the call. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. ET. We are headquartered in Los Angeles with offices in New York, Boston, Chicago, and London. Crescent Capital Partners invests in companies and sectors with growth potential within Australia & New Zealand or internationally. here to register, Not for publication, email or dissemination, Whitehorse Liquidity Partners grows team to 150 professionals, PE-backed Chartbeat acquires Lineup Systems and Tubular Labs, Industrial manufacturing round-up; Personal care products; 2023 Women in PE, EQT and PSP team up on Radius acquisition; Charlesbanks Caitlin Riederer talks women in PE, Introducing the Women in PE Class of 2023; Lincoln Road partially exits Brothers National, Fengate Private Equity-backed Inflector snaps up Donalco, Audax-backed Colony acquires New South Construction Supply. We provide support for founders and senior management teams to accelerate the achievement of their goals. 2023 Crescent Capital Investments Use the PitchBook Platform to explore the full profile. Our team have over 30 years experience assisting healthcare businesses accelerate growth. 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. Crescent Capital Group is headquartered in Los Angeles with offices in Boston, London, and New York. For more information about Crescent Capital Group, please visit www.crescentcap.com. 1: AUM as of 12/31/2022 and includes committed assets and employee investments in Crescent managed portfolios. First, we are targeting the closing of our announced merger with First Eagle BDC this quarter. Heres an airasia flight discount BigPay users can benefit from for 2023, High Airfares Are Here to Stay, AirAsias Fernandes Says. This list of organizations invested in by Crescent Capital provides data on their funding history, investment activities, and acquisition trends. The first question comes from Robert Dodd of Raymond James. In the same report you can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12-24 months. 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. 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. With deep in house expertise, we provide the support to accelerate growth creation in our portfolio companies. Crescent is the most active Private Equity investor in industrial companies in Australia, having invested in 11 industrial businesses over the last 4 funds. On a GAAP basis, fourth quarter net investment income per share was $0.52. Speaking on todays call will be CCAPs President and Chief Executive Officer; Jason Breaux; Chief Financial Officer, Gerhard Lombard; and Managing Director, Henry Chung. management team, and recent news are also included. Two more credit trends to highlight. At Crescent Capital, we invest in debt securities at all levels of a companys capital structure. KEY HIGHLIGHTS Generated significant excess cash flow of approximately $1.2 billion, driven by a strong netback asset base. . With that, I will now turn it over to Gerhard. 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. Register now to read this article and more for free. With that, Id now like to turn it over to Jason. Jason Breaux: Okay. To participate please dial (877 . Crescent raised its first fund in 1992 and has consistently been a leader in the private debt market, focusing on senior secured unitranche securities and junior debt. Warren Buffett took 25% of all returns in excess of 6 percent. All information contained in this website is qualified by the terms of applicable offering documents. 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. Robert Dodd: Got it. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. We believe that we benefit from years of experience managing below investment grade bank loans and debt securities over multiple economic and market cycles. Crescent BDCs portfolio, at any given point in time, may be comprised of some, all or none of the asset types shown. Average Retirement Savings By Age: Are You Normal? Since 1995 Crescent Capital has been supporting and building high-grade venture backed companies in Northern Ireland. 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. Or was it a more normal course of business add-ons or growth or whatever? Venture Capital Portfolio. That would have been 9.35% in hedge fund fees. Jason Breaux: Sure. But can you give us any color on how the portfolio companies are actually performing on EBITDA or revenue or anything like that? It has a well-diversified portfolio and is unique in that it also has international exposure. 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. 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. 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. Mr. Harari added, "Crescent has a multi-decade history of outstanding team continuity and investment focus in both public and private credit. I.e., is your forward leverage range target changing as a result of proposed acquisition? Please go ahead. 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. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. (310) 235-5900 it's been delivered there. The total size of the investment portfolio is around USD 400 million which includes hydro, wind, solar assets under operation. Crescents investment success across education, services and mining technology has helped innovative Australian businesses compete on a global stage. 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. Private Equity Portfolio. By providing your email address below, you are providing consent to Crescent Capital BDC, Inc. to send you the requested Investor Email Alert updates. At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with any third party. Importantly, we generated net realized gains for the full year 2022, delivering positive realized gains in excess of our losses. | ", "It has been Crescents human capital that has been most valuable to us. You can sign up for additional alert options at any time. In addition to equity capital, partnering with Crescent brings access to deep industry expertise and significant strategy and operational support. SLC Fixed Income portfolios qualify as sustainable As of December 31, 2022 Key differentiators Experienced teams with deep private credit expertise Our investment teams have specialized in private debt for more than 40 years, offering the necessary skills to navigate a nuanced asset class. Website by GCI. Win whats next. Video: Cameron Johnson, CEO Nucleus Network. The difference relates to a noncash reversal of our capital gains-based incentive fees on net realized and unrealized capital appreciation. Get the full list, Youre viewing 10 of 31 exits. Crescent Capital is an independent private equity and asset management firm with a focus on energy and infrastructure investments in Turkey and surrounding regions. More About us Our Portfolio at a Glance $ 1.3 B Portfolio Size (at Fair Value) 129 Portfolio Companies 90% First Lien Investments Shares added by 1.69% iShares Russell 1000. Robert Dodd: Hi guys. Crescent Capital Group LP ("Crescent"), a leading alternative credit investment firm, announced today the successful final close of its eighth private credit solutions fund, Crescent Credit Solutions VIII ("CCS Fund VIII"), raising $8 billion in investable capital, including targeted leverage and separately managed . 2023 Crescent Capital Group LP. 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. We look forward to speaking with you again soon. Click Home - Crescent Capital Investments Earn Accelerated Returns Through Multi-Family Real Estate About Us Discover more about our company and values. Crescent Capital BDC, Inc. (NASDAQ:CCAP) Q4 2022 Earnings Call Transcript February 23, 2023. If you experience any issues with this process, please contact us for further assistance. The bad news is, this July 25th twist is also likely to make Biden and the progressives more powerful than ever. 25+ years experience in strategy consulting, investment and business management and public company boards. Information on investments, active portfolio, exits, fund performance, dry powder, team and co-investors for Crescent Capital. Thank you. This serves to drive growth and performance improvement, accelerating value creation for shareholders. Crescent Capital is an attractively priced BDC trading at a substantial 26% discount to its NAV/share. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. I would now like to turn the conference over to Dan McMahon. In particular, in the past 10 years Crescent has been the most active private equity manager in healthcare in Australia. We specialize in repositioning well-located assets in emerging markets to protect investor capital and provide high yield returns. 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. Insights about top trending companies, startups, investments and M&A activities, notable investors of these companies, their Leaderboard For more information about Crescent. We believe this is an important distinction to highlight for shareholders in a volatile market environment. He began his investing career at Focus Partners, LLP, a Singapore-based long/short equity hedge fund focused on Southeast Asia. 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. By providing your email address below, you are providing consent to Crescent Capital BDC, Inc. to send you the requested Investor Email Alert updates. And it means its going to be harder than ever to hold onto any money you make. As a reminder, this call is being recorded for replay purposes. Jason reviewed several metrics related to our portfolio. In addition, a reconciliation of this measure may also be found in our earnings release. Website by GCI. We attributed the bulk of the quarters NAV decline to widening credit spreads.

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