Public Offering Highlights

Investment Structure

A limited liability company

Investment Objective

Current income and long-term appreciation

Suitability Standards

Accredited investors only

Investment Managers1

Manager: CNL Strategic Asset Management, LLC

Sub-manager: Sprott Resource Lending Partnership

Placement Agent

CNL Securities Corp.

Maximum Offering Size

$250 million (expandable at manager’s discretion)

Minimum Investment

$25,000, except for Class I which is $100,000

Unit Classes/Purchase Prices2

Class A $27.32
Class T $26.25
Class D $25.00
Class I $25.00
Class S $25.77

Distributions3

Monthly

Subscription Procedure

Monthly escrow sweep

Published NAV

Monthly

Geographic Focus4

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 Program5

10% annual liquidity, 2.5% quarterly

Escrow Break

$1 million (excluding capital from from the managers)

Manager and Sub-manager Investments6

$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

Incentive Fee

17.5% above 5% preferred return on income; 17.5% on cumulative realized capital gains with lookback adjustment (high-water mark)

Offering and Organizational Cost7

Up to 1.5%

Leverage Limit8

50% of net assets

Tax Reporting

Schedule K-1 (best efforts to provide no later than mid-March)

Fund Life9

Perpetual

 

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 as of June 1, 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 $25.00 per unit.
3 Distributions are not based on the Fund’s performance and are not guaranteed in frequency or amount. Distributions will 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 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. 
5 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. The program may be suspended, modified or terminated at any time.
6 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.
7 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.
8 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. High leverage typically magnifies any inflation and interest rate risks on the value of the loans to such companies. 
9  This investment offering has an infinite duration. The manager is under no obligation to pursue or complete any liquidity event.