Henry Chung
About Henry Chung
Henry Chung (born 1987) is President of Crescent Capital BDC, Inc. (CCAP) since 2024 and serves on the Advisor’s investment committee. He is a Managing Director at Crescent Capital Group LP focused on private credit; prior roles include leveraged finance at Imperial Capital and earlier experience at Trinity Capital LLC. He holds a B.A. from UCLA. CCAP’s proxy does not disclose executive pay metrics (TSR, revenue/EBITDA growth) tied to Mr. Chung; as an externally managed BDC, the primary performance linkage is via the Advisor’s incentive fee structure on net investment income and realized capital gains (details below) .
Past Roles
| Organization | Role | Years | Strategic impact |
|---|---|---|---|
| Crescent Capital Group LP | Managing Director; Member of Advisor’s investment committee; President of CCAP since 2024 | 2015–present | Senior private credit investor; leadership at CCAP; co-led diligence and portfolio assessment for CCAP’s acquisition of First Eagle Alternative Capital BDC (FCRD) . |
| Imperial Capital | Corporate Finance Division (leveraged finance) | Pre-2015 | Leveraged finance execution experience relevant to BDC underwriting . |
| Trinity Capital LLC | Investment banking (boutique) | Pre-Imperial | M&A and financing advisory experience . |
External Roles
| Organization | Role | Years | Notes |
|---|---|---|---|
| None disclosed in CCAP filings | — | — | No public company board or committee roles disclosed for Mr. Chung . |
Fixed Compensation
| Component | 2024–2025 Disclosure | Notes |
|---|---|---|
| Direct CCAP salary/bonus | None (executive officers receive no direct compensation from CCAP) | CCAP reimburses the Administrator for an allocable portion of compensation for certain officers and staff; amounts are not itemized by individual . |
| Perquisites (aircraft, security, etc.) | Not disclosed | No perquisite detail for executive officers in CCAP proxy . |
| Pension/SERP/Deferred comp | Not disclosed | — . |
Executive compensation for Mr. Chung is paid by Crescent (the external Advisor), not CCAP; CCAP’s proxy therefore does not include NEO salary/bonus tables .
Performance Compensation (economic linkage via external manager)
| Metric | Weighting/Structure | Target/Hurdle | Payout mechanics | Timing/Vesting |
|---|---|---|---|---|
| Pre-incentive fee net investment income (NII) | Income incentive fee | 1.75% per quarter (7.0% annualized) hurdle | 100% of NII above the hurdle up to “catch‑up” such that Adviser receives 17.5% of pre-incentive fee NII up to 2.1212%; then 17.5% of all remaining pre-incentive fee NII above catch‑up | Calculated and payable quarterly in arrears . |
| Realized capital gains (cumulative, net of losses/unrealized depreciation) | Capital gains incentive fee | Not applicable | 17.5% of realized capital gains on a cumulative basis since inception, net of realized losses and unrealized depreciation, less prior fees | Determined and payable in arrears at fiscal year-end (or at termination date if applicable) . |
| GAAP accrual on unrealized appreciation | Accounting accrual (not paid) | Not applicable | GAAP requires accrual of potential capital gains fee on net unrealized appreciation; no cash paid unless realized | Accrued each period under GAAP; zero recorded for 2024 . |
The Adviser voluntarily waived certain incentive fees in prior periods (scope described in 2023 proxy); select waivers (e.g., for specific fund investments) continued in 2024 .
Equity Ownership & Alignment
- Insider policy: Prohibits hedging/monetization, short sales, and pledging or holding CCAP shares in margin accounts—mitigates misalignment/forced selling risk .
Beneficial ownership (common stock)
| Record date | Shares owned | % of shares outstanding | Source |
|---|---|---|---|
| Mar 13, 2024 | 14,325 | ~0.04% (calc: 14,325 / 37,061,547) | CCAP DEF 14A 2024; shares outstanding 37,061,547 . |
| Mar 19, 2025 | 14,325 | ~0.04% (calc: 14,325 / 37,061,547) | CCAP DEF 14A 2025; shares outstanding 37,061,547 . |
Note: Percentages are calculated using disclosed holdings and shares outstanding as of each record date .
Additional alignment indicator (portfolio manager disclosure)
| As of | Aggregate dollar range of CCAP equity held by Henry A. Chung |
|---|---|
| Sep 30, 2024 | $100,001–$500,000 (portfolio manager disclosure in N‑2/A registration) . |
- Section 16(a) compliance: CCAP disclosed all directors/executive officers complied with Section 16(a) filing requirements for FY2023 .
Employment Terms
| Term | Disclosure |
|---|---|
| Appointment/role | President since 2024; officer appointments serve at the discretion of the Board . |
| Employer of record | Executive officers are employees of the external Advisor/Administrator; CCAP does not pay them directly . |
| Contract term/expiration | Not disclosed for Mr. Chung; officers serve until successors are elected/qualified or earlier resignation/removal . |
| Severance / Change‑of‑control | Not disclosed for Mr. Chung at CCAP (as an externally managed BDC, executive employment terms are with the Advisor) . |
| Non‑compete / Non‑solicit / Garden leave | Not disclosed in CCAP filings for Mr. Chung . |
| Clawback | Not disclosed; CCAP provides Codes of Conduct/Ethics and an Insider Trading Policy, including restrictions on hedging/pledging . |
| Relevant company agreements | Administration Agreement (reimbursable services; terminable by either party on 60 days’ notice); Investment Advisory Agreement (renewed in 2024/2025) . |
Performance & Track Record
- Transaction execution: Mr. Chung participated as a senior leader in CCAP’s 2022 acquisition of First Eagle Alternative Capital BDC (FCRD), providing portfolio diligence and commentary on asset quality, risk mix, and integration benefits during the public transaction call .
- Operating/stock performance during tenure: Not specifically disclosed for Mr. Chung in CCAP’s proxy or filings cited here .
Compensation Structure Analysis
- Pay design implications: Because CCAP executives receive no direct pay from the Company, their economic alignment is primarily via the Advisor’s fee structure (NII-based quarterly fee with a 7.0% annualized hurdle and capital gains fee on realized gains). This creates a direct linkage to sustaining/expanding net investment income and prudent realization of gains, but it also introduces the classic externally managed BDC tension where incentive fees can persist despite share price/TSR underperformance if NII meets hurdles .
- Equity alignment: Mr. Chung’s direct CCAP ownership is modest (~0.04%); however, portfolio manager disclosures indicate a $100,001–$500,000 range in CCAP equity, suggesting meaningful personal exposure relative to salary, albeit still small versus company float .
- Insider selling pressure: Hedging and pledging are prohibited under CCAP’s Insider Trading Policy, which materially lowers forced-sale/pledge risk; we did not identify Form 4 activity for Mr. Chung in the documents reviewed here .
Investment Implications
- Alignment: Economic incentives flow through the external Adviser’s fee structure (hurdle/catch‑up on NII; 17.5% on realized gains), aligning leadership with income durability and disciplined realizations; however, the lack of direct CCAP equity grants and modest personal share ownership means equity alignment is present but limited .
- Retention risk: Executive employment terms are with Crescent (Advisor) rather than CCAP; no CCAP-specific severance or change‑of‑control protections are disclosed for Mr. Chung. Continuity depends on Crescent’s retention/compensation practices, not on CCAP’s board-approved pay programs .
- Trading/overhang: Insider policy bans hedging/pledging, reducing overhang risk from collateral calls; holdings are small relative to float, so personal selling would likely not be a material technical factor .
- Execution: Mr. Chung’s direct involvement in the FCRD acquisition diligence highlights bottom‑up credit discipline and integration capability—positive for forward underwriting and portfolio quality in a volatile credit backdrop .