An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. That year Buffetts hedge fund returned 10.4% and Buffett took only 1.1 percentage points of that as fees. Website by GCI. Crescent Capital is a leading investor across . I believe he will not only run again next year, but could win a 2nd Presidential term and by a LANDSLIDE. 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. I will turn the call back to Jason Breaux for closing remarks. 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. We have just sent you an email so you can verify your account. By providing your email address below, you are providing consent to Crescent Capital BDC, Inc. to send you the requested Investor Email Alert updates. As of December 31, 2022, Crescent Capital Group managed over $40 billion of privately originated debt investments and marketable securities. Get the full list, Morningstar Institutional Equity Research. . Robert Dodd: Got it. Venture Capital Portfolio. Thank you again, everyone for your interest and support of CCAP. In total, we closed on five add-on and several revolver and delayed draw fundings with no new portfolio company investments in the quarter. More About us Our Portfolio at a Glance $ 1.3 B Portfolio Size (at Fair Value) 129 Portfolio Companies 90% First Lien Investments 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. Video: Melinda McGrath, CEO Australian Clinical Labs. We initially share this idea in October 2018 and the stock already returned more than 150%. Crescent Capital Group LP, a leading alternative credit investment firm, announced today the successful final close of its third direct lending fund, . With deep in house expertise, we provide the support to accelerate growth creation in our portfolio companies. The firm invests in companies operating in the information technology, life sciences, and manufacturing sectors. 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 . LOS ANGELES, NEW YORK & BOSTON--(BUSINESS WIRE)--Crescent Capital Group LP, a leading alternative credit investment firm, announced today the successful final close of its second direct lending . 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. Two more credit trends to highlight. it's been delivered there. Crescent is an alternative asset manager with approximately $40 billion 1 of assets under management and over 210 employees as of December 31, 2022. 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. CCS Fund VIII Becomes Largest Capital Raise in Crescent's History. Im on Slide 19. Read More Our Strategy Learn more about our investing strategy. This is basically a recipe to generate better returns than Warren Buffett is achieving himself. We believe that we benefit from years of experience managing below investment grade bank loans and debt securities over multiple economic and market cycles. Average Retirement Savings By Age: Are You Normal? 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%. Powered by Investor Host, Multi-Family & Commercial Property Investing, Understanding How Real Estate Syndications Work in Practice, The Tax Benefits of Investing in Multifamily Real Estate. Comments made over the course of this conference call and webcast may contain forward-looking statements and are subject to risks and uncertainties. ET. After that, there are no remaining term maturities until 2026. Crescent Capital is an independent private equity and asset management firm with a focus on energy and infrastructure investments in Turkey and surrounding regions. Discover more about our company and values. As of December 31, 2022, Crescent Capital Group managed approximately $40 billion of privately originated debt investments and marketable securities. bdcir@crescentcap.com. 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. 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. Can you give us any color around that? Use of this website is governed by the Terms and Conditions. Jason Breaux: Thanks, Gerhard. We still like this investment. ", "Crescent add value across business development, acquisition and enhancement activities. Shares added by 1.69% iShares Russell 1000. Crescent Capital Partners invests in companies and sectors with growth potential within Australia & New Zealand or internationally. Operator: Good afternoon, ladies and gentlemen, and welcome to the Q4 2022 Crescent Capital BDC, Inc. Earnings Conference Call. We have a large internal team which helps accelerate a portfolio company management teams decision making. 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. While we do anticipate further market volatility and the potential for spread widening as the cycle progresses, we feel good about our current portfolio, and we remain very excited about the First Eagle BDC transaction as we further enhance our scale and position. We remain very excited about the acquisition as we believe the combination provides many strategic and financial benefits to the combined company. Realized gains and losses, we believe, is a more important metric in grading our performance than unrealized gains and losses, which has meaningfully less impact on our longer-term results. First, we are targeting the closing of our announced merger with First Eagle BDC this quarter. Please go ahead. Venture Capital Portfolio Now lets shift to capitalization and liquidity. What's the investment trend over time for this hub? For this period, the Company had $277.6 million in aggregate exits, sales and repayments. Click here. His investors didnt mind that he underperformed the market in 1958 because he beat the market by a large margin in 1957. Crescent has an active partnership ethos, which is a highly structured and disciplined approach to portfolio management and hands-on value creation. 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. This was by design as we believe it is prudent to prioritize deleveraging in advance of the First Eagle acquisition. 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. At Crescent Capital, we invest in debt securities at all levels of a companys capital structure. 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. If Warren Buffetts hedge fund didnt generate any outperformance (i.e. Oops! Id now like to turn it over to Henry to discuss our Q4 investment activity. This recurring revenue ultimately accounted for 94% of this quarters total investment income, up from 86% in Q4 of 2021. to generate high returns in the 20% to 30% range. This list of organizations invested in by Crescent Capital provides data on their funding history, investment activities, and acquisition trends. ", "Our growth strategy was perfectly aligned with Crescents. Product Marketing and Business Development Director. 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. 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. Get the full list, Youre viewing 10 of 31 exits. 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. It has a well-diversified portfolio and is unique in that it also has international exposure. I look forward to working with our talented team of professionals to continue serving our current and prospective investors.". 2009 Crescent Capital, All Rights Reserved. I believe it will make millions of Americans vastly wealthier. So, how did Warren Buffett manage to generate high returns and beat the market? This call is being recorded on Thursday, February 23, 2023. Every year we ask all of our executives the question Would you recommend working with Crescent to a friend or colleague? The first question comes from Robert Dodd of Raymond James. If you experience any issues with this process, please contact us for further assistance. ", "I strongly recommend working in partnership with Crescent Capital. 2023 Crescent Capital Group LP. With that, I will now turn it over to Gerhard. Crescent has achieved strong success in Financial Services, with expertise in creating value through organic growth, acquisitions and geographical expansion into Asia. Access to our investment and operational team brings unparalleled support to our portfolio companies. 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. AirAsia plans to launch ride-hailing service in Spore, but do they stand a chance to compete? All rights reserved. You must click the activation link in order to complete your subscription. On a GAAP basis, fourth quarter net investment income per share was $0.52. Great. Video: Paul Wappett, CEO Australian Institute of Business. Video: Cameron Johnson, CEO Nucleus Network. Id also note that PIK income continues to represent a modest portion of our revenue at approximately 2% of total investment income. Their primary investment focus is with Northern Ireland based companies operating in the information technology, life sciences, and manufacturing sectors. The in house depth and breadth of consulting and operating skill sets provides support for portfolio companies to achieve their potential. Turning to Slide 16. Net realized losses were less than $0.05 per share. Please note that Crescent Capital BDC, Inc. may be referred to as CCAP, Crescent BDC or the company throughout the call. 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. Crescents investment activities are managed by dedicated teams focused on each of these asset classes. 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. We have a track record of expanding Australian businesses into Asia with over 50% of portfolio companies having an Asian presence. Jason Breaux: Yes. Robert Dodd: Hi guys. Crescent Capital is a Belfast based venture capital fund manager. 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. Offerings across the credit quality spectrum We take great pride in building long term partnerships with our investors based on an established reputation for delivering consistently strong performance. 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. Your submission has been received! Do you expect to be running lower leverage than was the case to present historically? Passive Investing: Which Real Estate Strategy is Right for You. 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). We initially share this idea in October 2018 and the stock already returned more than 150%. Were any of the follow-on was any of the follow-on capital to the portfolio companies to pad out liquidity? A link has been emailed to you - check your inbox. (310) 235-5900 For more information about Crescent Capital Group, please visit www.crescentcap.com. And on March 7, First Eagle is conducting a special meeting of its stockholders whereby they will be asked to adopt the agreement and plan a merger. Wed like to thank all of you for your continued support and time today. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. This serves to drive growth and performance improvement, accelerating value creation for shareholders. 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 have consistently been able to deliver significant value-add alongside our management teams. Importantly, we generated net realized gains for the full year 2022, delivering positive realized gains in excess of our losses. Please check your spam or junk folder just in case In addition to equity capital, partnering with Crescent brings access to deep industry expertise and significant strategy and operational support. Gross deployment in the fourth quarter was $46 million. Crescent BDC's portfolio, at any given point in time, may be comprised of some, all or none of the asset types shown. You can enter your email below to get our FREE report. Get the full list, Youre viewing 5 of 21 co-investor. We attributed the bulk of the quarters NAV decline to widening credit spreads. 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 Capital is an independent private equity and asset management firm with a focus on energy and infrastructure investments in Turkey and surrounding regions. Founded in 2000, Crescent Capital Partners is a private equity firm based in Sydney, Australia. Insights about top trending companies, startups, investments and M&A activities, notable investors of these companies, their Leaderboard For more information about Crescent. To participate please dial (877 . This video is provided by the Australian Investment Council. 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 . 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. Please turn to Slides 13 and 14 of the presentation, which highlights certain characteristics of our diversified portfolio. I.e., is your forward leverage range target changing as a result of proposed acquisition? Crescent has launched and fully invested the first energy-focused private equity fund in Turkey. In addition, a reconciliation of this measure may also be found in our earnings release. Jason Breaux: Thank you, Dan. We thank you for your participation and ask that you please disconnect your lines. 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. . Acting as a first-mover, we put together innovative financing structures and investment vehicles creating value for our institutional investors. He launched his hedge fund in 1956 with $105,100 in seed capital. Crescent Capital is a Belfast based venture capital fund manager. We have raised six funds since 2000 and we are a top quartile manager on global metrics. $30MM Weighted Average Portfolio Company EBITDA, Disciplined portfolio construction with average position size <1% of total fair value. 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. Before we begin, Ill start with some important reminders. "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. 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. We did intentionally delever a bit here in Q4 in anticipation of the merger. As you can guess, Warren Buffetts #1 wealth building strategy is to generate high returns in the 20% to 30% range. After submitting your request, you will receive an activation email to the requested email address. The companies continue to grow on the top line and the bottom line. We redeployed the majority of the proceeds from this monetization activity primarily into directly originated higher spread Crescent private credit opportunities. 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. 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. This increase was driven primarily by rising base rates and higher spreads. You talked about, obviously, youve lowered leverage ahead of that acquisition. Its also worth highlighting that in January, we upsized our SMBC Corporate Revolving Facility by $35 million to $385 million. The Firm believes that these high-yield assets will deliver strong cash-flow focused returns for investors. 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. Jason Breaux: Hey Robert, its Jason. Register now to read this article and more for free. 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. 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. Since 1995 Crescent Capital has been supporting and building high-grade venture backed companies in Northern Ireland. Networking We provide expertise and exposure to a network of relevant business contacts. 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. 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. A couple more worth highlighting. Based in New York, Mr. Harari is responsible for developing and executing Crescents strategic sales and marketing plan for clients and assets, including identifying potential new investors, developing and maintaining client relationships, designing new investment solutions and managing Crescents investor relations and client solutions team. Our team have been drawn from top tier strategy consulting practices and operating leadership roles in industry. The all time high for this statistics is 5. Crescent Capital Partners General Information. The presentation should be reviewed in conjunction with the companys Form 10-K filed yesterday with the SEC. We provide support for founders and senior management teams to accelerate the achievement of their goals. Warren Buffett has been investing and compounding for at least 65 years. 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. Crescent Capital is an attractively priced BDC trading at a substantial 26% discount to its NAV/share. Another, on your deployments in the quarter, obviously will follow on. In addition, our portfolio managers have responsibility for multi-asset class strategies that are constructed from each of the asset classes we manage. . Thank you! Active vs. 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 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. Focus on Seed and Series A. 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. Get matched with a tax expert to do your taxes, https://www.businesswire.com/news/home/20230228005594/en/. We are a community of like-minded real estate investors who together have a stronger purchasing power to acquire and operate multi-family properties for their potential of hands-free, tax-free passive income. As a reminder, this call is being recorded for replay purposes. Robert Dodd: Got it. Crescent Credit. And then one more, if I can. Warren Buffett never mentions this but he is one of the first hedge fund managers who unlocked the secrets of successful stock market investing. 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. An investment in Crescent BDC is different from a direct investment in any of the asset types shown above. bdcir@crescentcap.com. 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. Gerhard will then review our financial performance during the fourth quarter. Crescent Bit Capital is a type of secure investment that grows your money at a guaranteed rate based of chosen plan of interest for a fixed period of time. As you can see on the left-hand side of the page, over 99% was an existing senior secured first lien and unitranche investments. Video: Matt Courtney, CEO Construction Sciences. Additionally, the strength of our portfolio continues to benefit from the substantial amount of equity invested in our companies. 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. Crescent is the most active Private Equity investor in industrial companies in Australia, having invested in 11 industrial businesses over the last 4 funds. All data as of 12/31/2022. 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. 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. 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. 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. Good morning, everyone, and thank you for joining our earnings call. Do you expect to be running on a combined basis going forward? Mr. Harari added, "Crescent has a multi-decade history of outstanding team continuity and investment focus in both public and private credit. 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. Henry Chung: Thanks, Jason. 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. In particular, in the past 10 years Crescent has been the most active private equity manager in healthcare in Australia. management team, and recent news are also included. 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. The weighted average stated interest rate on our total borrowings was 6.23% as of year-end. Thanks for the question. 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 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. "Crescent were willing to invest initially and on a continued basis to maintain our technologically leadership position. 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. We believe an active engagement model is a leading indicator of strong company performance. 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.