As you can guess, Warren Buffetts #1 wealth building strategy is to generate high returns in the 20% to 30% range. Video: Matt Courtney, CEO Construction Sciences. Please turn to Slides 13 and 14 of the presentation, which highlights certain characteristics of our diversified portfolio. Please go ahead. Can you give us any color around that? At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with . Id also note that PIK income continues to represent a modest portion of our revenue at approximately 2% of total investment income. We specialize in repositioning well-located assets in emerging markets to protect investor capital and provide high yield returns. You can sign up for additional alert options at any time. it's been delivered there. ", "Crescent add value across business development, acquisition and enhancement activities. How much aggregate funding have these organizations raised over time? 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. There are no further questions at this time. Net realized losses were less than $0.05 per share. Gross deployment in the fourth quarter was $46 million. . First, we are targeting the closing of our announced merger with First Eagle BDC this quarter. Our team have been drawn from top tier strategy consulting practices and operating leadership roles in industry. The good news is, this powerful new force can help you make a lot of money even in a bear market. Shares added by 1.69% iShares Russell 1000. Taseko Mines Limited (AMEX:TGB) Q4 2022 Earnings Call Transcript, Smith & Nephew plc (NYSE:SNN) Q4 2022 Earnings Call Transcript. | Please turn to Slide 6, where youll see a summary of our results. And with that, operator, please open the line for questions. Our team have over 30 years experience assisting healthcare businesses accelerate growth. 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. Crescent is an alternative asset manager with approximately $40 billion 1 of assets under management and over 210 employees as of December 31, 2022. At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with any third party. So lets begin. This increase was driven primarily by rising base rates and higher spreads. Website by GCI. Website by GCI. (310) 235-5900 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. But can you give us any color on how the portfolio companies are actually performing on EBITDA or revenue or anything like that? Crescent has successfully helped unique Australian products become iconic brands that are loved by consumers around the world. 2023 Crescent Capital Group LP. ", "Crescents practical and analytical approach enabled management to hit their goals. 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. Crescent is the most active Private Equity investor in industrial companies in Australia, having invested in 11 industrial businesses over the last 4 funds. Crescent Capital Group LP, a leading alternative credit investment firm, announced today the successful final close of its third direct lending fund, . This list of organizations invested in by Crescent Capital provides data on their funding history, investment activities, and acquisition trends. LOS ANGELES, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. ("Crescent BDC" or "Company") (NASDAQ: CCAP) today reported net investment income of $59.7 million, or $1.93 per share, and adjusted net investment income of $53.4 million, or $1.73 per share, for the year ended December 31, 2022. 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. Networking We provide expertise and exposure to a network of relevant business contacts. I believe he will not only run again next year, but could win a 2nd Presidential term and by a LANDSLIDE. We are headquartered in Los Angeles with offices in New York, Boston, Chicago, and London. 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 Operator: Ladies and gentlemen, this does conclude our conference call for today. That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. 87% in this quarter were raising one or two, so it appears pretty stable. Access to our investment and operational team brings unparalleled support to our portfolio companies. Crescent Credit. As a reminder, this call is being recorded for replay purposes. 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. Thanks for the question. We have just sent you an email so you can verify your account. As of December 31, 2021, Crescent Capital Group managed approximately $38 billion of privately originated debt investments and marketable securities. "Crescent were willing to invest initially and on a continued basis to maintain our technologically leadership position. 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 in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. There are significant risks that should be considered and reviewed when considering an investment in real estate. Turning to Slide 16. 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. Ill provide some fourth quarter and full year highlights, touch on our current portfolio and positioning and then turn it over to Henry to review our recent activity in more detail. Jason Breaux: Sure. 25+ years experience in strategy consulting, investment and business management and public company boards. Crescent Capital is an attractively priced BDC trading at a substantial 26% discount to its NAV/share. 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 . 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. We believe an active engagement model is a leading indicator of strong company performance. Use of this website is governed by the Terms and Conditions. 2009 Crescent Capital, All Rights Reserved. Get the full list, Youre viewing 4 of 6 team members. With deep in house expertise, we provide the support to accelerate growth creation in our portfolio companies. What's the most common types of sub-organization? 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. If Warren Buffetts hedge fund didnt generate any outperformance (i.e. Investing in the future of finance, education, SaaS, logistics, and more. 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. So, how did Warren Buffett manage to generate high returns and beat the market? 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. Our team have been drawn from top tier strategy consulting practices and operating leadership roles in industry. Thank you again, everyone for your interest and support of CCAP. Operator: Thank you. ", "It has been Crescents human capital that has been most valuable to us. Crescent Capital's shares are likely to rebound, as fundamental factors don't support the downtrend. An offering is made only by the applicable offering documents and only in those jurisdictions where permitted by law. 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. 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). Before we begin, Ill start with some important reminders. 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. We are headquartered in Los Angeles with offices in New York, Boston, Chicago, and London. bdcir@crescentcap.com. 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. 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. Thank you! UAE-Based Edtech Startup Ostaz Is On A Mission To Become A One-Stop-Shop For Education, AirAsias Tony Fernandes Refocuses Back on a Superapp Just for Travel, Malaysia Healthcare Partners with AirAsia, Air India Express, AirAsia begin merger drill, MiL.k launched its first global point exchange service with airasia, Datactics Jamie Gordon on Big Financial Institutions and their Messy Datasets. Please go ahead. For this period, the Company had $277.6 million in aggregate exits, sales and repayments. Adjusted net investment income increased 17% to $0.49 per share from $0.42 per share for the quarter ended September 30, 2022. For example S&P 500 Index returned 43.4% in 1958. We ended the year with nearly $1.3 billion of investments at fair value across 129 portfolio companies with an average investment size of less than 1% of the total portfolio. We are an equity partner that brings more than money to the relationship. Its also worth highlighting that in January, we upsized our SMBC Corporate Revolving Facility by $35 million to $385 million. As of December 31, 2022, Crescent Capital Group managed over $40 billion of privately originated debt investments and marketable securities. Crescents track record is successfully managing through multiple economic and market cycles, provides us with significant and relevant experience navigating what could be a challenging environment in 2023 and beyond. Get our editors daily picks straight in your inbox! 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. 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. ", "Our growth strategy was perfectly aligned with Crescents. Their primary investment focus is with Northern Ireland based companies operating in the information technology, life sciences, and manufacturing sectors. But I would say overall, we are pleased with the underlying performance of the portfolio. $30MM Weighted Average Portfolio Company EBITDA, Disciplined portfolio construction with average position size <1% of total fair value. We appreciate your continued interest in CCAP. This list of organizations invested in by Crescent Capital provides data on their funding history, investment activities, and acquisition trends. We have a diverse portfolio across healthcare, industrials, financial services, technology, education and consumer brands. 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. Jason Breaux: Thanks, Gerhard. Don't have an account? Crescent Capital is a Belfast based venture capital fund manager. What's the most common final funding type when companies get acquired? Read More Our Strategy Learn more about our investing strategy. This recurring revenue ultimately accounted for 94% of this quarters total investment income, up from 86% in Q4 of 2021. Crescent has an active partnership ethos, which is a highly structured and disciplined approach to portfolio management and hands-on value creation. Crescent wraps up eighth private credit fund at $8bn, Investor Relations, Marketing & Communications Forum. 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. 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. 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. management team, and recent news are also included. 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. 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. Crescent BDC's portfolio, at any given point in time, may be comprised of some, all or none of the asset types shown. 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. 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. I mean how would the how are the operating trends doing? Crescent Capital Group LP has closed its eighth private credit fund at $8 billion. You must click the activation link in order to complete your subscription. Or is that just a timing? bdcir@crescentcap.com. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. We believe that these asset classes provide our clients with opportunities to generate income while preserving capital. Crescents investment success across education, services and mining technology has helped innovative Australian businesses compete on a global stage. Crescent Capital Partners is a leading Australian private equity firm. The bad news is, this July 25th twist is also likely to make Biden and the progressives more powerful than ever. Crescent Capital is an independent private equity and asset management firm with a focus on energy and infrastructure investments in Turkey and surrounding regions. 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. Only logged in subscribers of this site will be able to access the shared article. 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. The weighted average stated interest rate on our total borrowings was 6.23% as of year-end. For the fourth quarter, over 99% of our total debt investments at fair value made full scheduled principal and interest payments. As of year-end, this GAAP expense accrual has been fully reversed. . After that, there are no remaining term maturities until 2026. We have a diverse portfolio across healthcare, industrial, financial services, technology, education and consumer brands. Henry Chung: Thanks, Jason. Crescent Credit Solutions VIII's backers include insurance companies, pension funds, sovereign wealth funds . In addition to equity capital, partnering with Crescent brings access to deep industry expertise and significant strategy and operational support. Operator: Thank you. 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. His investors didnt mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. If you experience any issues with this process, please contact us for further assistance. By providing your email address below, you are providing consent to Crescent Capital BDC, Inc. to send you the requested Investor Email Alert updates. 2023 Crescent Capital Investments 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. In particular, in the past 10 years Crescent has been the most active private equity manager in healthcare in Australia. ET. Use of this website is governed by the Terms and Conditions. A couple more worth highlighting. All data as of 12/31/2022. AirAsia plans to launch ride-hailing service in Spore, but do they stand a chance to compete? 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. Register now to read this article and more for free. We initially share this idea in October 2018 and the stock already returned more than 150%. The firm invests in companies operating in the information technology, life sciences, and manufacturing sectors. The word on The Street in general, suggests a Strong Buy analyst consensus rating for Crescent Point Energy with a $10.13 average price target. Earnings Call TranscriptNASDAQ:CCAPQ4 2022, Despite Joe Bidens age, raging inflation, and his dismal 45% approval level. Founded in 1995, Crescent Capital is a venture capital firm based in Belfast, United Kingdom. We remain very excited about the acquisition as we believe the combination provides many strategic and financial benefits to the combined company. 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. We continue to believe that CCAP remains well positioned to navigate the economic and market uncertainty ahead. Please also note that past performance or market information is not a guarantee of future results. 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. And it means its going to be harder than ever to hold onto any money you make. Focus on Seed and Series A. We have a large internal team which helps accelerate a portfolio company management teams decision making. Since 1995 Crescent Capital has been supporting and building high-grade venture backed companies in Northern Ireland. View source version on businesswire.com: https://www.businesswire.com/news/home/20230228005594/en/, Mendel CommunicationsBill Mendel, +1-212-397-1030bill@mendelcommunications.com. Please check your spam or junk folder just in case With that, Id now like to turn it over to Jason. Were any of the follow-on was any of the follow-on capital to the portfolio companies to pad out liquidity? Your submission has been received! Video: Paul Wappett, CEO Australian Institute of Business. This was by design as we believe it is prudent to prioritize deleveraging in advance of the First Eagle acquisition. secretly invested like a closet index fund), Warren Buffett would have pocketed a quarter of the 37.4% excess return. One, the Boards of Directors of Crescent BDC and First Eagle BDC have each unanimously approved the transaction. 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. Excuse me. All rights reserved. Between 1957 and 1966 Warren Buffetts hedge fund returned 23.5% annually after deducting Warren Buffetts 5.5 percentage point annual fees. We initially share this idea in October 2018 and the stock already returned more than 150%. March 29-30, 2023 Convene, 117 W 46th St, New York, April 19-20, 2023 Convene, 117 W 46th St, New York, May 17-18, 2023 Hilton Tower Bridge, London, May 23-24, 2023 Convene 117 West 46th Street, New York, Get limited access to our industry news, analysis and data, plus regular email updates. to generate high returns in the 20% to 30% range. As you can see on the left-hand side of the page, over 99% was an existing senior secured first lien and unitranche investments. How are IPOs trending over time in this hub? The obvious, I mean, how you gave the interest coverage based on year-end rates. Please note that Crescent Capital BDC, Inc. may be referred to as CCAP, Crescent BDC or the company throughout the call. The company's 90% portfolio is performing above expectations, while 89% of its portfolio. PitchBooks data visualizations quickly surface an investors historical investmentsshowing a breakdown of activity by industry, year and region. It is for information purposes only and addresses accredited investors; such as wealth managers, family offices, and high-net-worth individuals. Jason Breaux: Yes. 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. | 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 . Something went wrong while submitting the form. Description. The companies continue to grow on the top line and the bottom line. Which investors participated in the most funding rounds within this hub? Im going to ask you a question that sort of relates to credit . As of December 31, we managed our debt-to-equity ratio down to 1.08x from 1.11x at September 30. You can enter your email below to get our FREE report. LP investments in high-growth and distressed companies in the United States and abroad. 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. Crescent Capital is a leading investor across real estate, private equity and venture capital. CCS Fund VIII Becomes Largest Capital Raise in Crescent's History. Active vs. . To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Crescent Capital Group is headquartered in Los Angeles with offices in Boston, London, and New York. You talked about, obviously, youve lowered leverage ahead of that acquisition. Operator: Good afternoon, ladies and gentlemen, and welcome to the Q4 2022 Crescent Capital BDC, Inc. Earnings Conference Call. Heres an airasia flight discount BigPay users can benefit from for 2023, High Airfares Are Here to Stay, AirAsias Fernandes Says. Guidance The total size of the investment portfolio is around USD 400 million which . S&P 500 Index generated an average annual compounded return of only 9.2% during the same 10-year period. Get the full list, Youre viewing 10 of 31 exits. 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. The all time high for this statistics is 5. 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. It has a well-diversified portfolio and is unique in that it also has international exposure. 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. 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. Discover more about our company and values. We take great pride in building long term partnerships with our investors based on an established reputation for delivering consistently strong performance. Our portfolio at fair value was comprised of the following: 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. Crescent Capital Investments, LLC is a privately held investment company that focuses on acquiring and managing opportunistic and value-add multi-family properties. Thank you, operator. The shocking amount some people have saved, and why speaking with a financial advisor could help increase your returns and alleviate stress. Two more credit trends to highlight. 2023 Crescent Capital Group LP. We did intentionally delever a bit here in Q4 in anticipation of the merger. 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. This means the bullish number of . I look forward to working with our talented team of professionals to continue serving our current and prospective investors.". Next, CBDC Senior Loan Fund, our joint venture was formally dissolved during the fourth quarter after being largely wound down in recent quarters. For more information about Crescent. He launched his hedge fund in 1956 with $105,100 in seed capital. 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. Do you expect to be running lower leverage than was the case to present historically? Reduced net debt by approximately $850 Click We provide support for founders and senior management teams to accelerate the achievement of their goals. Crescent is an alternative asset manager with approximately $40 billion1of assets under management and over 210employees as of December 31,2022. At Crescent Capital BDC, Inc., we promise to treat your data with respect and will not share your information with any third party. Get the full list, Morningstar Institutional Equity Research. Founder, Chief Executive Officer and Managing Director, Chief Financial Officer & Investment Executive, Youre viewing 10 of 67 investments. I would now like to turn the conference over to Dan McMahon. Great. Not the case? Product Marketing and Business Development Director. The total size of the investment portfolio is around USD 400 million which includes hydro, wind, solar assets under operation.