Public Offering Highlights
A limited liability company
Current income and long-term appreciation
Accredited investors only
Manager: CNL Strategic Asset Management, LLC
Sub-manager: Sprott Resource Lending Partnership
CNL Securities Corp.
Maximum Offering Size
$250 million (expandable at manager’s discretion)
$25,000, except for Class I which is $100,000
Unit Classes/Purchase Prices2
Class A $27.01
Class T $25.94
Class D $24.71
Class I $24.71
Class S $25.47
Monthly escrow sweep
Net Asset Value (NAV)4
Class A $24.71
Class T $24.71
Class D $24.71
Class I $24.71
Class S $24.71
Primarily in resource-rich countries with well-established investment and mining laws such as North America, Europe, and Australia, as well as parts of South America and Africa
Limited Unit Repurchase Program6
10% annual liquidity, 2.5% quarterly. These limits are at the Fund level based on the aggregate NAV per year.
$1 million (excluding capital from from the managers)
Manager and Sub-manager Investments7
$10 million from affiliates of CNL Financial Group and Sprott, Inc.
Asset Management Fees
1.5% of average gross assets, which excludes cash, calculated monthly
17.5% above 5% preferred return on income; 17.5% on cumulative realized capital gains with lookback adjustment (high-water mark)
Offering and Organizational Cost8
Up to 1.5%
50% of net assets; target leverage of 0-20% of net assets
Schedule K-1 (best efforts to provide no later than mid-March)
This investment is not suitable for all accredited investors and is considered to be speculative. There is no assurance the stated objectives will be met.
1 The sub-manager Sprott Resource Lending Partnership is a relying adviser of Resource Capital Investment Corporation. CNL Strategic Asset Fund Management, LLC and Resource Capital Investment Corporation are investment advisers registered with the U.S. Securities and Exchange Commission.
2 Effective for October 2021. Based on these initial offering prices, the net proceeds to CNL Sprott Strategic Asset Fund (the Fund), after deduction of applicable selling commissions and placement agent fees, will be $24.71 per unit.
3 Distributions are not based on the Fund’s performance and are not guaranteed in frequency or amount. Distributions may be paid from net investment income and, in addition, may be paid from offering proceeds, borrowings or reimbursable expense support, which will reduce future cash available for distributions and be dilutive to investors.
4 Effective as of Sept. 30, 2021. The net asset valuation is inherently subjective and therefore, NAV is an estimate of fair value and does not represent the amount an investor would receive now or in the future.
5 Some natural resource loans may not be repaid as contracted. Loans may cover mining operations in many locations. The Fund generally does not own the mines. These investments may carry risks associated with significant geographic concentration.
6 The quarterly unit repurchase program is limited with restrictions. The repurchase plan is dependent upon the recent net asset value (NAV) per unit. The program is limited to up to 2.5% aggregate NAV per calendar quarter and up to 10% of aggregate NAV per year based on each of the Fund's trailing four quarters. The program may be suspended, modified or terminated at any time.
7 Persons and entities affiliated with or employed by the manager and the sub-manager and/or their respective affiliates have made a combined capital contribution of $10 million.
8 The organization and offering costs of the Fund will be limited to 1.5% of the gross offering proceeds. These costs may or may not be reimbursed from proceeds of future offerings.
9 The Fund seeks to limit its leverage to 50% of the net value of its assets. The Fund may invest in companies that may have leveraged capital structures. There is no assurance the targeted level of leverage will be met or maintained. High leverage typically magnifies any inflation and interest rate risks on the value of the loans to such companies.
10 This investment offering has an infinite duration. The manager is under no obligation to pursue or complete any liquidity event.