Corporate Capital Trust

What is Corporate Capital Trust ?

Corporate Capital Trust is a non-traded Business Development Company (BDC) that gives investors access to private American companies through debt investments. As an externally managed firm, they are guided by CNL Financial Group and KKR, entities with a reputable track record in investments.

Their core objective is providing shareholders with current income and, to some extent, long-term capital appreciation. However, the firm is closed to new investors since October 25, 2016, at which point Corporate Capital Trust II was launched, maintaining a parallel investment strategy. FS/KKR Advisor, LLC, a significant BDC manager, now operates FS KKR Capital Corp. (FSK), which is publicly traded and emphasizes tailoring credit solutions to private middle market U.S. companies.

Their strategy involves primarily investing in senior secured debt and, to a lesser degree, subordinated debt to optimize risk-adjusted returns. With a portfolio valuation of $13.9 billion as of Q3 2024, they maintain a diverse investment portfolio comprising 217 companies spanning 24 industries.

The portfolio's top 10 investments account for a 20.0% concentration, and they emphasize senior secured investments, which constitute 67.0% of the portfolio. The median portfolio company EBITDA and leverage are $121 million and 6.1x, respectively. They boast a low non-accrual rate of 1.7% at fair value, suggesting strong portfolio performance.

FSK provides quarterly distributions, subject to board discretion and legal constraints, emphasizing their commitment to generating shareholder returns. The inception date of the BDC dates back to September 18, 2008, with a listing date of April 16, 2014, and a merger date on June 16, 2021.