LP investments in high-growth and distressed companies in the United States and abroad. 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. Diversification will not guarantee profitability or protection against loss. The good news is, this powerful new force can help you make a lot of money even in a bear market. If Warren Buffetts hedge fund didnt generate any outperformance (i.e. For this period, the Company had $277.6 million in aggregate exits, sales and repayments. 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. We still like this investment. This dynamic is evidenced by our internal portfolio ratings at the end of the fourth quarter, largely consistent with prior quarters with 87% of the portfolio rated 1 or 2, our highest rating categories. 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. Jason Breaux: Okay. Which investors participated in the most funding rounds within this hub? Crescents investment success across education, services and mining technology has helped innovative Australian businesses compete on a global stage. Crescent Capital is an independent private equity and asset management firm with a focus on energy and infrastructure investments in Turkey and surrounding regions. ET. The difference relates to a noncash reversal of our capital gains-based incentive fees on net realized and unrealized capital appreciation. 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. Use the PitchBook Platform to explore the full profile. Read More 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. With that, I will now turn it over to Gerhard. 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. 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. Acting as a first-mover, we put together innovative financing structures and investment vehicles creating value for our institutional investors. You can see that the weighted average yield of income producing securities at cost increased meaningfully quarter-over-quarter from 9.5% to 10.8% on the heels of the Federal Reserves interest rate hikes and is up 330 basis points year-over-year. Read More Our Strategy Learn more about our investing strategy. The obvious, I mean, how you gave the interest coverage based on year-end rates. CALGARY, AB - Crescent Point Energy Corp. ("Crescent Point" or the "Company") (TSX: CPG) (NYSE: CPG) is pleased to announce its operating and financial results for the year ended December 31, 2022. Click Please check your spam or junk folder just in case 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. Im going to ask you a question that sort of relates to credit . ", "Crescent brings a laser light focus on the things that drive value to our business.". Id now like to turn it over to Henry to discuss our Q4 investment activity. Our team have over 30 years experience assisting healthcare businesses accelerate growth. Gross deployment in the fourth quarter was $46 million. Warren Buffett has been investing and compounding for at least 65 years. Earnings Call TranscriptNASDAQ:CCAPQ4 2022, Despite Joe Bidens age, raging inflation, and his dismal 45% approval level. Offerings across the credit quality spectrum Crescent wraps up eighth private credit fund at $8bn, Investor Relations, Marketing & Communications Forum. Our team have been drawn from top tier strategy consulting practices and operating leadership roles in industry. We are headquartered in Los Angeles with offices in New York, Boston, Chicago, and London. 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. This list of organizations invested in by Crescent Capital provides data on their funding history, investment activities, and acquisition trends. 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. Website by GCI. You should only be asked to sign in once. Crescent Capital BDC, Inc. (NASDAQ: CCAP) was in 6 hedge funds' portfolios at the end of the third quarter of 2020. View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005594/en/, Mendel CommunicationsBill Mendel, +1-212-397-1030bill@mendelcommunications.com. . I would now like to turn the conference over to Dan McMahon. This has proven to be a competitive advantage, particularly in the current lending environment. Private Equity Portfolio. Turning back to this quarters earnings. The total size of the investment portfolio is around USD 400 million which . For more information about Crescent. This is basically a recipe to generate better returns than Warren Buffett is achieving himself. Jason reviewed several metrics related to our portfolio. I look forward to working with our talented team of professionals to continue serving our current and prospective investors.". Crescent has successfully helped unique Australian products become iconic brands that are loved by consumers around the world. Now lets shift to capitalization and liquidity. I believe he will not only run again next year, but could win a 2nd Presidential term and by a LANDSLIDE. Active vs. We did intentionally delever a bit here in Q4 in anticipation of the merger. Website by GCI. 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. Every year we ask all of our executives the question Would you recommend working with Crescent to a friend or colleague? We have just sent you an email so you can verify your account. So lets begin. Do you expect to be running lower leverage than was the case to present historically? An investor who invested $10,000 in Warren Buffetts hedge fund at the beginning of 1957 saw his capital turn into $103,000 before fees and $64,100 after fees (this means Warren Buffett made more than $36,000 in fees from this investor). Crescent has launched and fully invested the first energy-focused private equity fund in Turkey. Crescent Capital is a leading investor across real estate, private equity and venture capital. | Crescent Capital Partners General Information. Wed like to thank all of you for your continued support and time today. Warren Buffett took 25% of all returns in excess of 6 percent. Get the full list, Youre viewing 5 of 21 co-investor. 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. 1: AUM as of 12/31/2022 and includes committed assets and employee investments in Crescent managed portfolios. This serves to drive growth and performance improvement, accelerating value creation for shareholders. Dan McMahon: Good morning, and welcome to Crescent Capital BDC, Inc.s fourth quarter and year ended December 31, 2022 earnings conference call. We target middle market companies located in Australia and New Zealand with enterprise values of $50m to $300m. His investors didnt mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Something went wrong while submitting the form. The shocking amount some people have saved, and why speaking with a financial advisor could help increase your returns and alleviate stress. We have a diverse portfolio across healthcare, industrials, financial services, technology, education and consumer brands. 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. Crescent has launched and fully invested the first energy-focused private equity fund in Turkey. 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. ", "Crescent partnered with us and assisted in achieving our growth targets. Great. Comments made over the course of this conference call and webcast may contain forward-looking statements and are subject to risks and uncertainties. Well, its almost entirely because of a surprising July 25th twist that hardly anybodys talking about right now. 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 Capital is a Belfast based venture capital fund manager. Crescent Capital is a Belfast based venture capital fund manager. Using market interest rates at year-end, weighted average interest coverage for the total portfolio was 1.9x. We believe that these asset classes provide our clients with opportunities to generate income while preserving capital. A couple of reminders as it relates to the transaction. In this report, "we," "us," "our" and "Company" refer to Crescent Capital BDC, Inc. and its consolidated subsidiaries. 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. 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. We specialize in repositioning well-located assets in emerging markets to protect investor capital and provide high yield returns. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. Reduced net debt by approximately $850 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. First, we are targeting the closing of our announced merger with First Eagle BDC this quarter. Click here. We look forward to speaking with you again soon. The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. 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. 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. As of December 31, 2022, Crescent Capital Group managed approximately $40 billion of privately originated debt investments and marketable securities. PitchBooks data visualizations quickly surface an investors historical investmentsshowing a breakdown of activity by industry, year and region. In total, we closed on five add-on and several revolver and delayed draw fundings with no new portfolio company investments in the quarter. And with that, operator, please open the line for questions. 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. 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. As of year-end, this GAAP expense accrual has been fully reversed. In addition, a reconciliation of this measure may also be found in our earnings release. I think you said something to the effect of the portfolio companies have adequate liquidity, and in some cases, its been addressed or something like that. We initially share this idea in October 2018 and the stock already returned more than 150%. Before we begin, Ill start with some important reminders. 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. The firm seeks to invest in middle-market companies across Australia and New Zealand with a focus on the industrial, financial services, healthcare, consumer brands, technology, and education sectors. This video is provided by the Australian Investment Council. S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. 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. Oops! The total size of the investment portfolio is around USD 400 million which includes hydro, wind, solar assets under operation. The fund was more than double the size of . 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. 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. ", "Crescents practical and analytical approach enabled management to hit their goals. 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. 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. 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. Mr. Harari brings more than 15 years of investment experience to Crescent Capital. I mean, whats the how are things actually trending right now? Jason Breaux: Hey Robert, its Jason. That nonrecurring income has now been replaced by recurring yield related income from Crescents originated assets. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. A couple more worth highlighting. 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. 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. We see our role as working on the business, helping accelerate business decisions by providing capital, the consulting toolkit and done it before experience. Crescent Capital BDC, Inc. (NASDAQ:CCAP) Q4 2022 Earnings Call Transcript February 23, 2023. It has a well-diversified portfolio and is unique in that it also has international exposure. For example S&P 500 Index returned 43.4% in 1958. ", "Our growth strategy was perfectly aligned with Crescents. Product Marketing and Business Development Director. 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. This increase was driven primarily by rising base rates and higher spreads. For more information about Crescent Capital Group, please visit www.crescentcap.com. Get the full list, Youre viewing 10 of 31 exits. That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. Real Estate Portfolio Direct and LP investments across various asset types across the United States, including commercial, retail, multi-family, residential, hotel, development, self-storage and RV Parks. The $46 million in gross deployment compares to approximately $71 million in aggregate exits, sales and repayments in the quarter, inclusively a final $8 million liquidating return of capital from our joint venture, which, as Jason noted, is now fully dissolved. Crescent has achieved strong success in Financial Services, with expertise in creating value through organic growth, acquisitions and geographical expansion into Asia. With that, Id now like to turn it over to Jason. Next, CBDC Senior Loan Fund, our joint venture was formally dissolved during the fourth quarter after being largely wound down in recent quarters. de C.V. (NYSE:VIST) Q4 2022 Earnings Call Transcript, TriMas Corporation (NASDAQ:TRS) Q4 2022 Earnings Call Transcript, Tennant Company (NYSE:TNC) Q4 2022 Earnings Call Transcript. 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 decline relates primarily to unrealized losses we took to reflect wider credit spreads in the market as volatility within the leveraged finance and equity markets continued during the fourth quarter. Do you expect to be running on a combined basis going forward? The health of the portfolio is also demonstrated by the stable weighted average portfolio grade and low nonaccrual rates. 2023 Crescent Capital Group LP. You can enter your email below to get our FREE report. Thank you, operator. Id also note that PIK income continues to represent a modest portion of our revenue at approximately 2% of total investment income. Can you give us any color around that? Which companies in this hub have the most subsidiaries? 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. ", "It has been Crescents human capital that has been most valuable to us. This was by design as we believe it is prudent to prioritize deleveraging in advance of the First Eagle acquisition. Register now to read this article and more for free. $30MM Weighted Average Portfolio Company EBITDA, Disciplined portfolio construction with average position size <1% of total fair value. Crescent Credit Solutions VIII's backers include insurance companies, pension funds, sovereign wealth funds, financial institutions, and multi-employer plans. Use of this website is governed by the Terms and Conditions. And so on a pro forma combined basis, I think were going to end up sort of right in the middle of our target leverage range that we publicly stated as kind of 1.1 to 1.4. Capital raised by global funds reached almost $150 billion as of 30 September, up 19 percent year over year, Private Debt Investor reported. Consistent with Crescents track record of investing through cycles over the past 30-plus years, we believe we have constructed a portfolio that consists of companies that are adequately capitalized to address the current macroeconomic environment and have taken a proactive approach to bolstering liquidity in select situations where it may be warranted. 2009 Crescent Capital, All Rights Reserved. Along the way, I believe Biden could become one of the most powerful Presidents in history. And then one more, if I can. How Crescent invests Crescent began life in 1991, when managing partners Attanasio and Jean-Marc Chapus established Crescent Capital Corp. All data as of 12/31/2022. Networking We provide expertise and exposure to a network of relevant business contacts. Crescent is the most active Private Equity investor in industrial companies in Australia, having invested in 11 industrial businesses over the last 4 funds. Our portfolio at fair value was comprised of the following: The company has a one-year high of $10.68 and a one . InterContinental Hotels Group PLC (NYSE:IHG) Q4 2022 Earnings Call Transcript Vista Energy, S.A.B. . Don't have an account? We take great pride in building long term partnerships with our investors based on an established reputation for delivering consistently strong performance. Taseko Mines Limited (AMEX:TGB) Q4 2022 Earnings Call Transcript, Smith & Nephew plc (NYSE:SNN) Q4 2022 Earnings Call Transcript. Thanks for the question. We have raised six funds since 2000 and we are a top quartile manager on global metrics. Investors in our funds include both domestic and international pension funds and endowments. On a GAAP basis, fourth quarter net investment income per share was $0.52. We are proud to have globally leading NPS scores with our executive partners. Operator: Thank you. We redeployed the majority of the proceeds from this monetization activity primarily into directly originated higher spread Crescent private credit opportunities. Home - Crescent Capital Investments Earn Accelerated Returns Through Multi-Family Real Estate About Us Discover more about our company and values. Get our editors daily picks straight in your inbox! Please go ahead. Get matched with a tax expert to do your taxes, https://www.businesswire.com/news/home/20230228005594/en/. To reiterate Henrys comments, we prioritize delevering during Q4 in advance of the close of the First Eagle acquisition. Turning to Slide 16. Venture Capital Portfolio. Please note that Crescent Capital BDC, Inc. may be referred to as CCAP, Crescent BDC or the company throughout the call. Only logged in subscribers of this site will be able to access the shared article. But can you give us any color on how the portfolio companies are actually performing on EBITDA or revenue or anything like that? 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. Please turn to Slide 15 where we highlight our recent activity. It is for information purposes only and addresses accredited investors; such as wealth managers, family offices, and high-net-worth individuals. Privacy Policy In addition to equity capital, partnering with Crescent brings access to deep industry expertise and significant strategy and operational support. 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. 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. 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 As of December 31, we managed our debt-to-equity ratio down to 1.08x from 1.11x at September 30. The weighted average stated interest rate on our total borrowings was 6.23% as of year-end. Shares added by 1.69% iShares Russell 1000. Video: Melinda McGrath, CEO Australian Clinical Labs. 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.