Corporate Capital Trust II to Suspend Offering, May Change Advisor
December 11, 2017 | James Sprow | Blue Vault
On December 11, the board of trustees of Corporate Capital Trust II, a business development company (BDC) that invests in the debt of privately owned American companies, announced that the fund intends to suspend its offering to new investors effective January 10, 2018.
The board of trustees of the Company also announced that it will begin exploring changes to Corporate Capital Trust II’s advisory structure proposed by the Company’s current investment subadviser, KKR Credit Advisors (US) LLC (KKR), including joining other BDCs in seeking investment advisory services from a new strategic BDC partnership between KKR and Franklin Square Holdings L.P. (FS Investments) or their respective affiliates. Corporate Capital Trust II is currently advised by CNL and sub-advised by KKR. Any change in its advisory structure would require shareholder approval.
Under their recently announced agreement, KKR and FS Investments intend to create the largest BDC platform, providing advisory services to six traded and non-traded funds, with approximately $18 billion in anticipated combined assets under management. Corporate Capital Trust, which was advised by CNL and sub-advised by KKR until its recent listing on the New York Stock Exchange, and Corporate Capital Trust II would comprise a portion of this newly created platform, subject to shareholder approval.
“We believe being advised by this new joint venture between KKR and FS Investments would provide investors in Corporate Capital Trust II with access to additional resources and depth, and we are pleased to pursue this opportunity for Corporate Capital Trust II’s shareholders,” said James M. Seneff, the executive chairman of CNL. “We have enjoyed our close relationship with KKR and know they will continue to foster the trust we have developed with our investors as they move forward with this new venture.”
CNL and KKR formed a relationship in the summer of 2010, and have since launched two non-traded BDCs that have a combined $4.6 billion in assets under management.
“CNL is a pioneer in alternative investments and has brought great insight and knowledge into our work with them on Corporate Capital Trust and Corporate Capital Trust II,” said Todd Builione, president of KKR Credit and Markets and CEO of Corporate Capital Trust. “Through the scale of our new venture, we will be able to offer even more value to investors.”
Learn more about FS Investments and CNL Financial Group on the Blue Vault Sponsor Focus page.
