Corporate Capital Trust, founded in 2011, is a publicly traded business development company that invests in the debt of privately owned enterprises. According to CCT’s website, their primary goal is to “deliver current income and, to a lesser extent, long-term capital appreciation.”
The firm is externally managed by FS/KKR Adviser, LLC—a finance consultancy jointly run by FS Investments and KKR Credit. CCT had 132 portfolio companies across 23 industries as of June 30, 2018, equating to roughly $4.4 billion worth of investments.
The company’s second quarter 2018 report shows a pro forma net investment income of $50.3 million ($0.40 per share), up from $49.5 million ($0.39 per share) for the previous quarter.
“We are pleased with the progress we’ve made since announcing the partnership between FS Investments and KKR,” said CCT President Todd Builione. “Completing the merger with FSIC, closing the $3.4 billion revolving credit facility, of which CCT will be allocated $1.45 billion, and maintaining our strong origination pipeline will position us well to deliver consistent long-term performance and drive value for our investors.”
Last week, Nasdaq reported that CCT’s stock was oversold, with shares changing hands for as low as $15.99 per unit. Analysts assess whether a stock is oversold using the Relative Strength Index (RSI), a tool used to measure momentum on a scale of zero to 100. A stock is classified as oversold if it falls below 30. CCT’s RSI score was at 28.3.
“Corporate Capital Trust Inc (Symbol: CCT) presently has a stellar rank, in the top 10 percent of the coverage universe, which suggests it is among the top most ‘interesting’ ideas that merit further research by investors,” Nasdaq reported. “A bullish investor could look at CCT’s 28.3 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.”