Please read the Private Placement Memorandum (PPM), including the Risk Factors section, for full details. The PPM may be obtained by calling 866-650-0650

CNL Strategic Residential Credit primarily invests in residential credit assets, which present certain risks, including credit, prepayment, interest rate, liquidity and securitization loss exposure risks. This investment 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.

• Offering Risk. 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.
• Investment Objective Risk. CNL Strategic Residential Credit has no prior operating history, no experience operating as a REIT and there is no assurance it will achieve its investment objectives.
• Undue Reliance on Managers or Past Performance. CNL Strategic Residential Credit’s advisor is CNL Residential Credit Manager, LLC and the sub-advisor is Balbec Capital Management, L.P. Each advisor is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Investors should not rely on the past performance of the advisor 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.
• Conflicts of Interest Risk. CNL Strategic Residential Credit’s advisors and their respective affiliates face conflicts of interest, including those that result from compensation arrangements, allocations of business opportunities, and the allocation of time of their investment professionals. CNL Strategic Residential Credit pays substantial fees and expenses to the advisor, the sub-advisor, the managing dealer or their respective affiliates. These payments increase the risk that investors will not earn a profit on their investment.
• Tax Risks. CNL Strategic Residential Credit intends to qualify as a REIT for U.S. federal income tax purposes beginning with the taxable year ending Dec. 31, 2026, but qualification is not guaranteed. If the fund fails to qualify for REIT status in any taxable year, it will be subject to federal income tax on taxable income at regular corporate rates.
• Inability to make Distributions Risk. 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.
• Use of Leverage Risk. CNL Strategic Residential Credit’s strategy is to use a variety of forms of leverage through borrowings, derivatives and other financial instruments. Leverage can increase expenses, add interest rate risk and magnify performance volatility.
• Valuation Risk. Asset valuations will be estimates of fair value, and do not represent the amount an investor would receive now or at any time in the future. CNL Strategic Residential Credit’s estimate of fair value for the portfolio involves subjective determinations, and the NAV may not accurately reflect the actual price at which its assets could be liquidated.
• Liquidity Risk. 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. The share repurchase plan has numerous restrictions and offers redemptions up to 2.5% of CNL Strategic Residential Credit’s aggregate NAV per calendar quarter and up to 10% of the aggregate NAV for the prior four quarters. The board of directors may amend, suspend, terminate or modify the plan at any time. investors will be required to bear the economic risk of an investment in the shares for an indefinite period of time.
• Economic and Market Conditions. Economic downturns, particularly those affecting the real estate industry, adverse conditions in the areas where CNL Strategic Residential Credit’s investments or the properties underlying such investments are located and local real estate conditions, changes in interest rates, inflation, regulatory changes or geopolitical events could negatively impact performance.
• Past performance is not indicative of future results.

Neither the Securities and Exchange Commission (the “SEC”) nor any state securities regulator has approved or disapproved of these securities or determined if this prospectus/PPM is truthful or complete, or determined whether the securities offered hereby can be sold in compliance with applicable conduct standards, including the standard imposed under Regulation Best Interest. In addition, the Attorney General of the State of New York has not passed on or endorsed the merits of this offering. Any representation to the contrary is unlawful. The use of forecasts in this offering is prohibited. Any representation to the contrary and any predictions, written or oral, as to the amount or certainty of any present or future cash benefit or tax consequence which may flow from an investment in our shares is not permitted.

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this website constitute “forward-looking statements.” Forward-looking statements are statements that do not relate strictly to historical or current facts, but reflect management’s current understandings, intentions, beliefs, plans, expectations, assumptions and/or predictions regarding the future of our business and its performance, the economy and other future conditions and forecasts of future events and circumstances. Forward-looking statements are typically identified by words such as “believes,” “expects,” “anticipates,” “intends,” “estimates,” “plans,” “continues,” “pro forma,” “may,” “will,” “seeks,” “should” and “could,” and words and terms of similar substance, although not all forward-looking statements include these words.

Our forward-looking statements are not guarantees of our future performance and shareholders are cautioned not to place undue reliance on any forward-looking statements. While we believe our forward-looking statements are reasonable, such statements are inherently susceptible to uncertainty and changes in circumstances. As with any projection or forecast, forward-looking statements are necessarily dependent on assumptions, data and/or methods that may be incorrect or imprecise, and may not be realized. Our forward-looking statements are based on our current expectations and a variety of risks, uncertainties and other factors, many of which are beyond our ability to control or accurately predict.

All written and oral forward-looking statements attributable to us or persons acting on our behalf are qualified in their entirety by these cautionary statements. Forward-looking statements speak only as of the date on which they are made; we undertake no obligation to, and expressly disclaim any obligation to, update or revise forward-looking statements to reflect new information, changed assumptions, the occurrence of subsequent events, or changes to future operating results over time unless otherwise required by law.

In addition to these risk factors, please also review our Privacy Policy  and Terms of Use Policy for additional information particularly concerning links to other websites, limitation of liability and securities advice