Investment Strategy

CNL Sprott Strategic Asset Fund seeks to create and grow an investment portfolio that generates returns by:

  • Thoughtfully selecting investments through rigorous due diligence and actively managing and monitoring its investment portfolio
  • Primarily taking first lien positions against assets of each portfolio company that it provides a loan1 
  • Negotiating documentation for each loan and investment that includes a robust covenant and risk-mitigation package2

CNL Sprott Strategic Asset Fund is considered speculative. The management and mitigation of risk is an integral component of CNL Sprott Strategic Asset Fund's strategy.

Originated loans (debt positions) to natural resource companies will be non-investment grade instruments rated lower than investment grade. Additionally, companies may have no credit rating at all. First lien positions do not protect against loss.

Covenants are not a guarantee against loss and some investments or non-originated positions may have limited or no covenants. The Fund may also make standalone investments from time-to-time in equity or convertible securities that are not connected with a natural resource loan.