bdcs for income-starved clients...bdcs for income-starved clients moderator michael zmistowski,...

BDCs For Income-Starved ClientsMODERATOR

Michael Zmistowski, ChairmanFinancial Planning Advisors, LLC

PANELISTS Tom Alonso, Vice President of Investor RelationsProspect Street

Brody Browe, Senior Vice PresidentFS Investments

Sean Hickham, Senior Vice President of Fund ManagementCNL Financial Group

BDCs For Income-Starved Clients

MODERATOR Michael Zmistowski, ChairmanFinancial Planning Advisors, LLC

PANELISTS Tom Alonso, Vice President of Investor RelationsProspect Street

BUSINESS DEVELOPMENT COMPANY SECTOR OVERVIEW

11 15

18 18

24 25 25 28

36

41 45

51 52

0

10

20

30

40

50

60

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Num

ber o

f Pub

lic B

DCs

25 25

Financial Crisis

$59.1 billion total assets* $33.8 billion net asset value* $32.9 billion market capitalization

(1) BDCs that have Small Business Investment Company (“SBIC”) subsidiaries may apply to have indebtedness held a these subsidiaries excluded from this calculation for regulatory purposes. * Balance Sheet data as most recently reported.

THE U.S. MIDDLE MARKET IS A KEY DRIVER OF THE U.S. ECONOMY ► ~200,000 companies with 44.5 million employees, one-third of the private sector workforce, approximately one-third of U.S.

private-sector GDP – $4.4 trillion ► Over $10 trillion annual revenue, on a stand-alone basis, the U.S. middle market would be the 5th largest global economy

9.97%

1.84%

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

50%

1Q03

2Q

03

3Q03

4Q

03

1Q04

2Q

04

3Q04

4Q

04

1Q05

2Q

05

3Q05

4Q

05

1Q06

2Q

06

3Q06

4Q

06

1Q07

2Q

07

3Q07

4Q

07

1Q08

2Q

08

3Q08

4Q

08

1Q09

2Q

09

3Q09

4Q

09

1Q10

2Q

10

3Q10

4Q

10

1Q11

2Q

11

3Q11

4Q

11

1Q12

2Q

12

3Q12

4Q

12

1Q13

2Q

13

3Q13

4Q

13

1Q14

2Q

14

3Q14

4Q

14

1Q15

2Q

15

3Q15

4Q

15

U.S. Middle Market YoY Quarterly EBITDA Growth U.S. Middle Market EBITDA CAGR Since September 2002 U.S. GDP CAGR Since September 2002

8 8 8 8 9 9 9 9 0

Financial Crisis

CONSISTENT LONG-TERM U.S. MIDDLE MARKET EBITDA GROWTH

Source: Standard & Poor’s Leveraged Commentary & Data. Note: Standard & Poor’s defines the middle-market as companies with EBITDA of $50 million or less and large corporate as companies with EBITDA of more than $50 million.

BDCS HAVE FILLED THE VOID CREATED BY WITHDRAWAL OF BANKS AND INSTITUTIONAL LENDERS FROM U.S. MIDDLE MARKET LENDING

In 1994, Banks comprised [VALUE]

of the Primary Market for Levered

Loans

By 2015, Bank's share of the

Primary Market for Levered Loans had decreased to 13.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

0

2,000

4,000

6,000

8,000

10,000

12,000

1994

19

95

1996

19

97

1998

19

99

2000

20

01

2002

20

03

2004

20

05

2006

20

07

2008

20

09

2010

20

11

2012

20

13

2014

20

15

U.S. Commercial Bank Holdcos (count) Bank Share of Primary Market for Levered Loans (%)

In [CATEGORY NAME], Middle Market issuers accounted for

[VALUE] of High-Yield issues outstanding

By [CATEGORY NAME], the

percentage of High Yield issues from

Middle Market issuers had reduced

to [VALUE]

0%

10%

20%

30%

40%

50%

60%

70%

$0.0 T

$0.2 T

$0.4 T

$0.6 T

$0.8 T

$1.0 T

$1.2 T

$1.4 T

1995

19

96

1997

19

98

1999

20

00

2001

20

02

2003

20

04

2005

20

06

2007

20

08

2009

20

10

2011

20

12

2013

20

14

2015

Par Value of Issues ≥ $200MM Par Value of Issues < $200MM Percentage of Issues < $200MM by Issue Count

1.52%

4.07% 4.40%

4.67%

0.0%

2.5%

5.0%

Less than $100M $100M-$249M $250M-$499M $500M or greater

CUMULATIVE DEFAULT RATE BY FACILITY SIZE (1)

(1) For closings from 1995-2015.

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

MIDDLE MARKET SPREAD PREMIUM (2)

(2) Spread premium for Middle Market leveraged loans over large corporate leveraged loans.

5.0x 4.7x 5.8x

4.5x 3.2x

4.3x 4.3x 4.5x 4.6x 5.3x 5.4x

41% 41% 38%

46%

51%

49% 47% 43% 47%

45% 50%

0.0x

5.0x

10.0x

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total Debt Multiple Equity Capitalization

MIDDLE MARKET LBOs

5.5x 5.6x 6.2x 5.2x 4.0x 4.7x 5.2x 5.3x 5.4x 5.9x 5.7x

33% 35% 37%

45%

50% 45%

43% 41% 39% 40% 44%

0.0x

5.0x

10.0x

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total Debt Multiple Equity Capitalization

LARGE CORPORATE LBOs

Source: Standard & Poor’s Leveraged Commentary & Data Note: S&P Leveraged Commentary & Data defines middle market as EBITDA of $50 million or less and large corporate as EBITDA of more than $50 million.



PANELISTS Sean Hickham, Senior Vice President of Fund ManagementCNL Financial Group

CCT-0916-16565-BD FOR BROKER-DEALER AND/OR RIA USE ONLY.

Disclosures •  This is neither an offer to sell nor a solicitation of an offer to buy the securities described herein. The offering is made only by the prospectus. Investing in Corporate Capital Trust is not suitable for all

investors and they should read the prospectus carefully before making an investment. Consider the investment objectives, risks, charges and expenses before making a recommendation. Selling firms are

reminded that offering-specific communications must be accompanied or preceded by a prospectus. •  The information contained herein does not replace or supersede any information contained within the prospectus, supplements or related filings.

•  Corporate Capital Trust is advised by CNL Fund Advisors Company (CNL) and subadvised by KKR Credit Advisors (US) LLC (KKR), affiliates of CNL Financial Group and KKR & Co. L.P., respectively. The managing dealer of Corporate Capital Trust is CNL Securities, member FINRA/SIPC.

Risk Factors

•  Investing in Corporate Capital Trust may be considered speculative and involves a high degree of risk, including the risk of a substantial loss of investment. Other risks include a limited operating history,

reliance on the advisors of the company, conflicts of interest, payment of substantial fees to the advisors of the company and its affiliates, limited liquidity, and liquidation at less than the original amount invested. See the Risk Factors section in the prospectus to read about the risks an investor should consider before buying shares of Corporate Capital Trust. There is no assurance the investment objectives

will be met. •  Distributions are not guaranteed and subject to change. Future distributions may include a return of principal or borrowed funds, which may lower overall returns to the investor and may not be

sustainable.

•  An investment in Corporate Capital Trust is illiquid, which means that an investor will have limited ability to sell shares and should not expect to be able to sell their holdings until a liquidity event. The board of directors must consider a liquidity event on or before Dec. 31, 2018, but there is no guarantee that any liquidity event will take place. It is not intended that Corporate Capital Trust be listed on an

exchange during the offering period, and they do not expect a secondary market in the shares to develop. If an investor is able to sell shares, they will likely receive less than their purchase price. •  The share repurchase program is expected to be limited to 2.5 percent of the weighted average number of shares outstanding in any quarter. The program may be suspended, modified or terminated by

the board of directors at any time.

•  Where indicated, data includes assets which are owned and held by a counterparty to a total return swap (TRS) agreement, as discussed in the prospectus.

FOR BROKER-DEALER AND/OR RIA USE ONLY.

Corporate Capital Trust is advised by CNL Fund Advisors Company (CNL) and KKR Credit Advisors (US) LLC (KKR), affiliates of CNL Financial Group and KKR & Co. L.P., respectively. Past performance is not indicative of future results.

CNL Orlando, Fla.

KKR & Co. San Francisco, Calif.

Two Proven Track Records. One Powerful Partnership.

Advisor: Responsible for overall management activities.

Subadvisor: Responsible for the day-to-day management of

investment portfolio.

Management Team


Please note there are substantial costs associated with an investment in this offering. An investor must review the fees and expenses in the prospectus.

What it means to Corporate Capital Trust: Access to the same deals and same terms regardless of investment amount

Access to the same investment advantages as larger institutions and high net worth investors1

Corporate Capital Trust is advised by CNL Fund Advisors Company (CNL) and subadvised by KKR Credit Advisors (US) LLC (KKR), affiliates of

CNL Financial Group and KKR & Co. L.P., respectively. 1 Institutional investors typically invest with strategies, terms and conditions different from those of individual investors, who typically have a shorter investment time horizon, lower risk capacity, greater liquidity needs and

pay higher fees and expenses for retail offerings.

Unbiased Allocation Policy


Balanced and Diversified Portfolio Investment Portfolio Overview

Investment Structure1,2

Capital Stack1 Diversification by Industry

Debt Investment Maturities3

  Corporate Capital Trust has a diversified portfolio, focusing on senior debt (74.86 percent of investments)

and diverse industries

  Over 60 percent of the portfolio matures prior to 2022, providing cash flow flexibility

  Exposure to senior debt has remained consistent

  78.32 percent of debt portfolio in floating-rate loans vs. 21.68 percent fixed-rate loans

  Energy represents a relatively small portion of the Corporate Capital Trust portfolio at 4.25 percent of

assets; energy price volatility downside risk should be limited

Capital Goods, 18.12%

Software & Services, 12.89% Retailing, 7.06%

Diversified Financials,

6.85% Healthcare

Equipment & Services, 5.80%

Materials, 5.76%

Consumer Durables &

Apparel, 4.99%

Transportation, 4.76%

Technology Hardware & Equipment,

4.64%

Automobiles & Components,

4.49%

[CATEGORY NAME], [VALUE]

76.33% 78.36% 78.37% 74.86%

13.01% 12.07% 12.39% 14.68% 8.20% 6.69% 6.27% 6.19%

2.46% 2.88% 2.98% 4.27%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

Q3 2015 Q4 2015 Q1 2016 Q2 2016 Senior Debt Subordinated Debt Equity/Other Structured Products

49.68% 57.21% 55.77% 57.63%

37.03% 32.08% 33.54% 30.29% 13.29% 10.71% 10.68% 12.08%

0.00%

50.00%

100.00%

Q3 2015 Q4 2015 Q1 2016 Q2 2016

Originated Proprietary Syndicated

2.83%

4.74%

16.88% 21.58%

17.34% 18.01%

12.17%

3.41% 3.05%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2017 2018 2019 2020 2021 2022 2023 2024 2025

All data as of June 30, 2016. 1 The portfolio includes assets which are owned and held by a counterparty to a total return swap (TRS) agreement, as discussed in the prospectus. Percentages are based upon fair market value of total portfolio including unsettled purchases, assets held by a counterparty and excluding cash and short-term investments. 2 Originated transactions are directly sourced through a network of Corporate Capital Trust advisors where terms other than just price are negotiated. Proprietary transactions include primary issuance, club or

anchor order transactions, or other investment opportunities not generally available to the syndicated market. Syndicated transactions are positioned in an active securities exchange or secondary market. 3 Calculated using weighted maturity dates for debt holdings.




PANELISTS

Brody Browe, Senior Vice PresidentFS Investments

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SAMPLE REGULATORY AND STRUCTURAL SIMILARITIES AND DIFFERENCES BETWEEN TYPES OF BDCS

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1 FSIC III is a private business development company (BDC). When considering an investment in a private BDC or mutual fund, investors should determine whether the investment fits with their investment objectives, time horizon and liquidity needs and understand any expenses, fees and risks associated with making such investment. Past performance is no guarantee of future results.

2 The Morningstar Bank Loan Mutual Fund Category includes all mutual funds tracked by Morningstar that invest primarily in floating-rate bank loans instead of bonds. 3 The CSLLI is an index designed to mirror the investable universe of the U.S. dollar-denominated leveraged loan market. FSIC III invests primarily in senior-secured floating rate loans of private U.S. companies. An investment

cannot be made in any index.

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