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New words:
Advertising, Aerospace, Australia, Automotive, Beverage, billion, Building, Canada, Cargo, CIM, concurrent, Construction, Consumer, deep, Defense, Dermatology, diversified, Durable, East, Electric, Energy, enhanced, Environmental, Food, fundamental, Gas, Healthcare, High, Kingdom, Leisure, Luxembourg, Media, Oil, Packaging, partially, Publishing, recapitalization, Retail, Rubber, shareholder, Sovereign, Sweden, Tech, therewith, Transportation, Wholesale
Removed:
acceleration, Additionally, AlpInvest, apply, approving, CDL, CGCIM, Cliffwater, competitive, conformed, contract, customary, delegated, depressed, discontinuation, entity, exclude, executed, experience, expiration, Failure, fixed, forced, implementation, incur, incurrence, Indigo, launched, line, liquidation, maintenance, meaningful, optional, pandemic, partnership, percentage, premium, presenting, reallocation, reform, relationship, reviewing, Screening, separate, stable, statutory, subscription, sunset, tenure, termination, tranched, unable
Financial report summary
?Risks
- We are currently operating in a period of capital markets disruption and economic uncertainty, and capital markets may experience periods of disruption and instability in the future. These market conditions may materially and adversely affect debt and equity capital markets in the United States and abroad, which have had and may continue to have a negative impact on our business and operations.
- Inflation has adversely affected and may continue to adversely affect the business, results of operations and financial condition of our portfolio companies.
- Economic recessions or downturns could impair our portfolio companies and harm our operating results.
- We are dependent upon our Investment Adviser for our future success.
- Our financial condition, results of operations and ability to achieve our investment objective depend on our ability to source investments, access financing and manage future growth effectively.
- We expect to raise additional capital in the near-term and may need to continue to raise additional capital to grow because we must distribute most of our income and intend to continue to conduct Quarterly Tender Offers.
- Our investors have obligations to satisfy capital calls.
- We may be unable to pay our obligations when due if our investors fail to pay installments of their capital commitments to us when due.
- Any failure on our part to maintain our status as a BDC or RIC would reduce our operating flexibility, may hinder our achievement of our investment objective, may limit our investment choices and may subject us to greater regulation.
- Regulations governing our operation as a BDC affect our ability to, and the way in which we will, raise additional capital. As a BDC, the necessity of raising additional capital may expose us to risks, including the typical risks associated with leverage.
- We borrow money, which magnifies the potential for gain or loss on amounts invested and may increase the risk of investing in us.
- Our indebtedness could adversely affect our business, financial conditions or results of operations.
- Changes in interest rates have increased, and may in the future increase, our cost of capital, reduce the ability of our portfolio companies to service their debt obligations and decrease our net investment income.
- We may experience fluctuations in our quarterly results.
- There are significant potential conflicts of interest, including the management of other investment funds and accounts by our Investment Adviser, which could impact our investment returns and the holders of our common stock.
- We may be obligated to pay our Investment Adviser incentive compensation even if we incur a loss.
- Our fee structure may induce our Investment Adviser to pursue speculative investments and incur leverage, and investors may bear the cost of multiple levels of fees and expenses.
- A portion of our income and fees may not be qualifying income for purposes of the income source requirement.
- If we are not treated as a “publicly offered regulated investment company,” as defined in the Code, certain U.S. stockholders will be treated as having received a dividend from us in the amount of such U.S. stockholders’ allocable share of the management and incentive fees paid to our Investment Adviser and certain of our other expenses.
- If we fail to maintain effective internal controls over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act, we may not be able to timely or accurately report our financial results, which could have a material adverse effect on our business.
- Certain investors are limited in their ability to make significant investments in us.
- Our Board of Directors is authorized to reclassify any unissued shares of common stock into one or more classes of preferred stock, which could convey special rights and privileges to its owners.
- Provisions of the MGCL and of our Charter and bylaws could deter takeover attempts and have an adverse impact on the price of our common stock.
- Our Board of Directors may change our investment objective, operating policies and strategies without prior notice and without stockholder approval.
- We are highly dependent on information systems, and systems failures could significantly disrupt our business.
- Cybersecurity risks and cyber incidents may adversely affect our business or those of our portfolio companies by causing a disruption to our operations, a compromise or corruption of confidential information and/or damage to business relationships, or those of our portfolio companies, all of which could negatively impact our business, results of operations or financial condition.
- Changes in laws or regulations governing our business or the businesses of our portfolio companies, changes in the interpretation thereof or newly enacted laws or regulations, and any failure by us or our portfolio companies to comply with these laws or regulations may adversely affect our business and the businesses of our portfolio companies.
- Our ability to continue to operate depends on the services provided by our Investment Adviser, Administrator and sub-administrators. Each is able to resign upon 60 days’ notice, and we may not be able to find a suitable replacement within that time, resulting in a disruption in our operations that could adversely affect our financial condition, business and results of operations.
- Our Investment Adviser’s liability is limited under the Amended and Restated Investment Advisory Agreement, and we are required to indemnify our Investment Adviser against certain liabilities, which may lead our Investment Adviser to act in a riskier manner on our behalf than it would when acting for its own account.
- Our investments are risky and speculative.
- Our portfolio securities are generally illiquid and typically do not have a readily available market price and, in such a case, we will value these securities at fair value as determined in good faith under procedures adopted by our Board of Directors or its designee, which valuation is inherently subjective and may not reflect what we may actually realize from the sale of the investment.
- We operate in a highly competitive market for investment opportunities, and compete with investment vehicles sponsored or advised by our affiliates.
- Our portfolio companies may be highly leveraged.
- Our portfolio companies may incur debt that ranks equally with, or senior to, some of our investments in such companies and if there is a default, we may experience a loss on our investment.
- Our portfolio may be concentrated in a limited number of portfolio companies and industries, which will subject us to a risk of significant loss if any of these companies defaults on its obligations under any of its debt instruments or if there is a downturn in a particular industry.
- Declines in the prices of corporate debt securities and illiquidity in the corporate debt markets may adversely affect the fair value of our portfolio investments, reducing our NAV through increased net unrealized depreciation.
- To the extent we make investments in restructurings and reorganizations they may be subject to greater regulatory and legal risks than other traditional direct investments in portfolio companies.
- We have not yet identified all of the portfolio companies we will invest in.
- The financial projections of our portfolio companies could prove inaccurate.
- The due diligence investigation that our Investment Adviser carries out with respect to an investment opportunity may not reveal or highlight all relevant facts that may be necessary or helpful in evaluating such investment opportunity.
- Our portfolio companies prepay loans from time to time, which may have the effect of reducing our investment income if the returned capital cannot be invested in transactions with equal or greater yields.
- Our ability to enter into transactions with Carlyle and our other affiliates is restricted.
- Our failure to make follow-on investments in our portfolio companies could impair the value of our investments.
- The disposition of our investments may result in contingent liabilities.
- Because we generally do not hold controlling equity interests in our portfolio companies, we may not be in a position to exercise control over our portfolio companies or to prevent decisions by management of our portfolio companies that could decrease the value of our investments.
- Our investments in foreign securities may involve significant risks in addition to the risks inherent in U.S. investments.
- We may expose ourselves to risks if we engage in hedging transactions.
- There are certain risks associated with holding debt obligations that have original issue discount or payment-in-kind interest.
- Our investments may be affected by force majeure events.
- Investing in our common stock involves a high degree of risk.
- Quarterly Tender Offers are not guaranteed and, if implemented for any given quarter, will be for a limited number of our shares of common stock. Our stockholders may not be able to sell their shares on timely basis.
- Our common stock is subject to transfer restrictions.
- There is a risk that our stockholders may not receive distributions or that our distributions may not grow over time and a portion of our distributions to our stockholders may be a return of capital for U.S. federal income tax purposes.
- Non-U.S. stockholders may be subject to withholding of U.S. federal income tax on dividends we pay.
- We may have difficulty paying our required distributions if we recognize taxable income before or without receiving cash representing such income.