CNL Strategic Residential Credit

This investment is speculative, has substantial costs, and differs from traditional private equity. There is no assurance the stated objectives will be met.

Footnotes

1. Distributions are not guaranteed. The annualized distribution rate is calculated by annualizing the per share distributions paid and dividing by the current price per share. For the year-to-date period ended Aug. 31, 2026, total distributions declared were 0% from net investment income before expense support, 98.1% from expense support, 1.9% from net realized gains and 0% from offering proceeds. Distributions paid are not solely based upon performance. Subject to certain conditions being met, CNL Strategic Residential Credit is obligated to repay expense support to the managers over several years, which would reduce future income available for distributions. Distribution composition of coverage will vary among share classes, and the actual fiscal year distribution composition will not be known until the audited Form 10-K is filed.

2. CNL Strategic Residential Credit’s advisor is CNL Residential Credit Manager, LLC (an affiliate of CNL Financial Group) and the sub-advisor is Balbec Capital Management, L.P. (an affiliate of Balbec Capital LP). Each advisor is an investment adviser registered with the U.S. Securities and Exchange Commission. Investors should not rely on the past performance of the advisors or their respective affiliates as an indication of future performance. CNL Strategic Residential Credit is a different investment vehicle with fees, expenses, regulation and risks dissimilar to the advisors’ other funds and this is the first time the advisors have partnered together.

3. CNL Strategic Residential Credit intends to elect and qualify to be taxed as a REIT for U.S. federal income tax purposes, commencing with the taxable year ending Dec. 31, 2026. Individual taxpayers may be entitled to claim a deduction in determining their taxable income. Subject to limitations, each investor’s tax position is different, consult with your tax advisor. If the fund fails to achieve or maintain a REIT status for any taxable year, it will be subject to federal income tax on taxable income at regular corporate rates. Not all of the investment portfolio will be backed by real assets. CNL Strategic Residential Credit invests in loans collateralized by real property, it does not directly own real estate. Mortgage servicing rights, derivatives and other hedging transactions may not be effective in mitigating risk in all market environments or against all types of risks.

Risk Factors and General Notices

An investment in RCRED is for accredited investors only. This material does not constitute, is not part of, and does not grant permission to make an offer to sell securities and is not the solicitation of an offer to purchase the securities described herein. Consideration of these materials must be read in conjunction with the private placement memorandum (PPM) (as supplemented or amended, the PPM) in order to understand fully all the objectives, risks, charges and expenses associated with an investment.

The offering is conducted on a “best-efforts” basis. If CNL Strategic Residential Credit is unable to raise a substantial amount of capital in the near term, its ability to achieve its investment objectives could be adversely affected. This is a “blind pool” offering, meaning investors cannot evaluate investments before they are made.

The private offering of CNL Strategic Residential Credit securities have not been approved or disapproved by any federal or state securities commission or regulatory authority.

Neither the U.S. Securities and Exchange Commission, the Attorney General of the State of New York, nor any other state regulator has passed on or endorsed the merits of this offering. Any representation to the contrary is illegal.

An investment in CNL Strategic Residential Credit, Inc. is speculative, involves substantial costs and risks and is not suitable for all investors. Investors could lose all or a substantial portion of their investment.

An investment in CNL Strategic Residential Credit is illiquid. Shares sold in this offering will not be listed on an exchange or quoted through a quotation system for the foreseeable future, if ever. If investors are able to sell their shares, they may receive less than their purchase price.

Distributions are not guaranteed in frequency or amount. Distributions paid are not solely based upon performance. Distributions may be funded from multiple sources, including, but not limited to, offering proceeds, borrowings, operating cash flow and expense support. Distributions that are not derived from operating cash flow produced by performance may not be sustainable. Subject to certain conditions being met, CNL Strategic Residential Credit is obligated to repay expense support to the advisors over several years, reducing future income available for distributions.

The managing dealer of CNL Strategic Residential Credit is CNL Securities Corp., member FINRA/SIPC. CNL Securities and its associates cannot provide investment advice for any individual or any individual situation and are not acting in a fiduciary capacity.

Shares of CNL Strategic Residential Credit’s stock have not been registered under the Securities Act of 1933, as amended, or under the laws of any state. The transferability of the shares is substantially restricted by applicable securities law and the PPM.

This material contains forward-looking statements. Forward-looking statements are based on current expectations and may be identified by words such as believes, anticipates, expects, may, will, continues, could, targeted and terms of similar substance, and speak only as of the date made. Actual results could differ materially due to risks and uncertainties that are beyond the CNL Strategic Residential Credit’s ability to control or accurately predict. Investors and financial professionals should not place undue reliance on any forward-looking statements. CNL Strategic Residential Credit undertakes no obligation to publicly update or revise any forward-looking statements.

This information is not tax or legal advice. Investors should discuss the tax risks associated with this offering with their personal tax professional.

CNL Strategic Residential Credit is a differentiated asset-backed residential credit strategy designed as a compelling alternative to traditional private credit, with the potential to deliver an attractive distribution rate and competitive risk-adjusted returns.¹

Up to $250M

$10,000

8.24%

CNL has partnered with Balbec Capital, a 15-year industry veteran and one of the largest and most frequent non-bank RMBS issuers, to offer this new strategy.²

Backed by real assets, the strategy aims to offer:

income diversification

a tax-advantaged real estate investment trust structure³

strategic interest rate hedges

PPM

Overview Flyer

Subscription Agreement

Get started

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Need paperwork assistance?

This investment is speculative, has substantial costs, and differs from traditional private equity. There is no assurance the stated objectives will be met.

Footnotes

Risk Factors and General Notices

Important Notice

Ohio Important Notice

New Jersey Important Notice

CNL Strategic Residential Credit is a differentiated asset-backed residential credit strategy designed as a compelling alternative to traditional private credit, with the potential to deliver an attractive distribution rate and competitive risk-adjusted returns.1

Up to $250M

$10,000

8.24%

CNL has partnered with Balbec Capital, a 15-year industry veteran and one of the largest and most frequent non-bank RMBS issuers, to offer this new strategy.2

Backed by real assets, the strategy aims to offer:

income diversification

a tax-advantaged real estate investment trust structure3

strategic interest rate hedges

PPM

Overview Flyer

Subscription Agreement

Get started

Looking for your wholesaler?

Need paperwork assistance?

This investment is speculative, has substantial costs, and differs from traditional private equity. There is no assurance the stated objectives will be met.

Footnotes

Risk Factors and General Notices

Important Notice

Ohio Important Notice

New Jersey Important Notice

Footnotes 1

CNL Strategic Residential Credit is a differentiated asset-backed residential credit strategy designed as a compelling alternative to traditional private credit, with the potential to deliver an attractive distribution rate and competitive risk-adjusted returns.¹

CNL has partnered with Balbec Capital, a 15-year industry veteran and one of the largest and most frequent non-bank RMBS issuers, to offer this new strategy.²

a tax-advantaged real estate investment trust structure³