CION Investment Corp (CION) Risk Analysis

282828Our ability to achieve our investment objective depends on CIM’s ability to manage and support our investment process. If CIM was to lose any members of its senior management team, our ability to achieve our investment objective could be significantly harmed.Our ability to achieve our investment objective depends on CIM’s ability to identify and analyze, and to invest in, finance and monitor companies that meet our investment criteria. CIM’s capabilities in structuring the investment process, providing competent, attentive and efficient services to us, and facilitating access to financing on acceptable terms depend on the employment of investment professionals in an adequate number and of adequate sophistication to match the corresponding flow of transactions. To achieve our investment objective, CIM may need to hire, train, supervise and manage new investment professionals to participate in our investment selection and monitoring process. CIM may not be able to find investment professionals in a timely manner or at all. Failure to support our investment process could have a material adverse effect on our business, financial condition and results of operations.Since we have no employees, we depend on the investment expertise, skill and network of business contacts of the broader networks of CIM and its affiliates. CIM evaluates, negotiates, structures, executes, monitors and services our investments. Our future success depends to a significant extent on the continued service and coordination of CIM and its senior management team. The departure of any members of CIM’s senior management team could have a material adverse effect on our ability to achieve our investment objective. Our board of directors may change our operating policies and strategies without prior notice or shareholder approval, the effects of which may be adverse to our results of operations and financial condition.Our board of directors has the authority to modify or waive our current operating policies, investment criteria and strategies without prior notice and without shareholder approval. We cannot predict the effect any changes to our current operating policies, investment criteria and strategies would have on our business, NAV, operating results or trading prices of our common stock and our 2029 Notes. However, the effects might be adverse, which could negatively impact our ability to pay shareholders distributions and cause shareholders to lose all or part of their investment. Price declines in the medium- and large-sized U.S. corporate debt market may adversely affect the fair value of our portfolio, reducing our NAV through increased net unrealized depreciation.Conditions in the medium- and large-sized U.S. corporate debt market may deteriorate, as seen during the 2008 financial crisis and the 2020 outbreak of the COVID-19 pandemic, which may cause pricing levels to similarly decline or be volatile. During the financial crisis and the 2020 outbreak of the COVID-19 pandemic, many institutions were forced to raise cash by selling their interests in performing assets in order to satisfy margin requirements or the equivalent of margin requirements imposed by their lenders and/or, in the case of hedge funds and other investment vehicles, to satisfy widespread redemption requests. This resulted in a forced deleveraging cycle of price declines, compulsory sales, and further price declines, with falling underlying credit values, and other constraints resulting from the credit crisis and the pandemic generating further selling pressure. If similar events occurred in the medium- and large-sized U.S. corporate debt market, our NAV could decline through an increase in unrealized depreciation and incurrence of realized losses in connection with the sale of our investments, which could have a material adverse impact on our business, financial condition and results of operations.There is a risk that investors in our common stock may not receive distributions or that our distributions may not grow over time.We may not maintain investment results that will allow us to pay a specified level of distributions or year-to-year increases in distributions. In addition, due to the asset coverage test applicable to us as a BDC, we may be limited in our ability to make distributions.The amount of any distributions we may pay is uncertain and our distributions may exceed our earnings. Therefore, portions of the distributions that we pay may represent a return of capital to shareholders that will lower their tax basis in their common stock.We may fund our distributions to shareholders from any sources of funds available to us, including borrowings, net investment income from operations, capital gains proceeds from the sale of assets, non-capital gains proceeds from the sale of assets, and dividends or other distributions paid to us on account of preferred and common equity investments in portfolio companies. Our ability to pay distributions might be adversely affected by, among other things, the impact of one or more of the risk factors described in this section. In addition, the inability to satisfy the asset coverage test applicable to us as a BDC may limit our ability to pay distributions. All distributions are and will be paid at the discretion of our board of directors and will depend on our earnings, our financial condition, maintenance of our RIC status, compliance with applicable BDC regulations, compliance with the terms, conditions and covenants in our financing arrangements, and such other factors as our board of directors may deem relevant from time to time. We cannot assure investors that we will continue to pay distributions to our shareholders in the future. 29292929Risks Relating to Our InvestmentsRisks Relating to Our InvestmentsOur investments in prospective portfolio companies may be risky, and we could lose all or part of our investment.Our investments in prospective portfolio companies may be risky, and we could lose all or part of our investment.We invest and intend to invest in the following types of loans of private and thinly-traded U.S. middle-market companies.We invest and intend to invest in the following types of loans of private and thinly-traded U.S. middle-market companies.Senior Secured Debt.Senior Secured Debt.First Lien Loans and Second Lien Loans. When we invest in senior secured term debt, including first lien loans and second lien loans, we will generally take a security interest in the available assets of these portfolio companies, including the equity interests of their subsidiaries. We expect this security interest to help mitigate the risk that we will not be repaid. However, there is a risk that the collateral securing our loans may decrease in value over time or lose its entire value, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital. Also, in some circumstances, our security interest could be subordinated to claims of other creditors. In addition, deterioration in a portfolio company’s financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the loan. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or at all, or that we will be able to collect on the loan should we be forced to enforce our remedies.First Lien Loans and Second Lien Loans. When we invest in senior secured term debt, including first lien loans and second lien loans, we will generally take a security interest in the available assets of these portfolio companies, including the equity interests of their subsidiaries. We expect this security interest to help mitigate the risk that we will not be repaid. However, there is a risk that the collateral securing our loans may decrease in value over time or lose its entire value, may be difficult to sell in a timely manner, may be difficult to appraise and may fluctuate in value based upon the success of the business and market conditions, including as a result of the inability of the portfolio company to raise additional capital. Also, in some circumstances, our security interest could be subordinated to claims of other creditors. In addition, deterioration in a portfolio company’s financial condition and prospects, including its inability to raise additional capital, may be accompanied by deterioration in the value of the collateral for the loan. Consequently, the fact that a loan is secured does not guarantee that we will receive principal and interest payments according to the loan’s terms, or at all, or that we will be able to collect on the loan should we be forced to enforce our remedies.Unitranche Loans. We also expect to invest in unitranche loans, which are loans that combine both senior and subordinated financing, generally in a first-lien position. Unitranche loans provide all of the debt needed to finance a leveraged buyout or other corporate transaction, both senior and subordinated, but generally in a first lien position, while the borrower generally pays a blended, uniform interest rate rather than different rates for different tranches. Unitranche debt generally requires payments of both principal and interest throughout the life of the loan. Unitranche debt generally has contractual maturities of five to six years and interest is typically paid quarterly. Generally, we expect these securities to carry a blended yield that is between senior secured and subordinated debt interest rates. Unitranche loans provide a number of advantages for borrowers, including the following: simplified documentation, greater certainty of execution and reduced decision-making complexity throughout the life of the loan. In addition, we may receive additional returns from any warrants we may receive in connection with these investments. In some cases, a portion of the total interest may accrue or be paid in kind. Because unitranche loans combine characteristics of senior and subordinated financing, unitranche loans have risks similar to the risks associated with senior secured debt, including first lien loans and second lien loans, and subordinated debt in varying degrees according to the combination of loan characteristics of the unitranche loan.Unitranche Loans. We also expect to invest in unitranche loans, which are loans that combine both senior and subordinated financing, generally in a first-lien position. Unitranche loans provide all of the debt needed to finance a leveraged buyout or other corporate transaction, both senior and subordinated, but generally in a first lien position, while the borrower generally pays a blended, uniform interest rate rather than different rates for different tranches. Unitranche debt generally requires payments of both principal and interest throughout the life of the loan. Unitranche debt generally has contractual maturities of five to six years and interest is typically paid quarterly. Generally, we expect these securities to carry a blended yield that is between senior secured and subordinated debt interest rates. Unitranche loans provide a number of advantages for borrowers, including the following: simplified documentation, greater certainty of execution and reduced decision-making complexity throughout the life of the loan. In addition, we may receive additional returns from any warrants we may receive in connection with these investments. In some cases, a portion of the total interest may accrue or be paid in kind. Because unitranche loans combine characteristics of senior and subordinated financing, unitranche loans have risks similar to the risks associated with senior secured debt, including first lien loans and second lien loans, and subordinated debt in varying degrees according to the combination of loan characteristics of the unitranche loan.Unsecured Debt. Our unsecured debt, including corporate bonds and subordinated, or mezzanine, investments will generally rank junior in priority of payment to senior debt. This may result in a heightened level of risk and volatility or a loss of principal, which could lead to the loss of the entire investment. These investments may involve additional risks that could adversely affect our investment returns. To the extent interest payments associated with such debt are deferred, such debt may be subject to greater fluctuations in valuations, and such debt could subject us and our shareholders to non-cash income, including PIK interest and original issue discount. Loans structured with these features may represent a higher level of credit risk than loans that require interest to be paid in cash at regular intervals during the term of the loan. Since we generally will not receive any principal repayments prior to the maturity of some of our unsecured debt investments, such investments will have greater risk than amortizing loans.Unsecured Debt. Our unsecured debt, including corporate bonds and subordinated, or mezzanine, investments will generally rank junior in priority of payment to senior debt. This may result in a heightened level of risk and volatility or a loss of principal, which could lead to the loss of the entire investment. These investments may involve additional risks that could adversely affect our investment returns. To the extent interest payments associated with such debt are deferred, such debt may be subject to greater fluctuations in valuations, and such debt could subject us and our shareholders to non-cash income, including PIK interest and original issue discount. Loans structured with these features may represent a higher level of credit risk than loans that require interest to be paid in cash at regular intervals during the term of the loan. Since we generally will not receive any principal repayments prior to the maturity of some of our unsecured debt investments, such investments will have greater risk than amortizing loans.Risks Relating to Our Debt FinancingsRisks Relating to Our Debt FinancingsThe Small Business Credit Availability Act of 2018 allows us to incur additional leverage and our shareholders approved a proposal permitting us to incur additional leverage, effective December 31, 2021.The Small Business Credit Availability Act of 2018 allows us to incur additional leverage and our shareholders approved a proposal permitting us to incur additional leverage, effective December 31, 2021.As a BDC, we were generally not permitted to incur indebtedness unless immediately after such borrowings we had an asset coverage for total borrowings of at least 200% (i.e., the amount of debt may not exceed 50% of the value of our assets). On March 23, 2018, the Small Business Credit Availability Act of 2018, which amended Section 61(a) of the 1940 Act, was signed into law to permit BDCs to reduce the minimum “asset coverage” ratio from 200% to 150% and, as a result, to potentially increase the ratio of a BDC’s debt to equity from a maximum of 1-to-1 to a maximum of 2-to-1, so long as certain approval and disclosure requirements are satisfied. Specifically, a BDC is permitted to apply a lower minimum asset coverage ratio of 150% if: (1) the BDC complies with certain additional asset coverage disclosure requirements; and (2)(A) a “required majority” of the BDC’s directors, as defined in Section 57(o) of the 1940 Act, approves the application of such a lower minimum asset coverage ratio to the BDC, in which case the 150% minimum asset coverage ratio will become effective on the date that is one year after the date of such independent director approval; or (B) the BDC obtains, at a special or annual meeting of its shareholders at which a quorum is present, the approval of more than 50% of the votes cast for the application of such a lower minimum asset coverage ratio to the BDC, in which case the 150% minimum asset coverage ratio will become effective on the first day after the date of such shareholder approval.Federal Income Tax RisksFederal Income Tax RisksWe will be subject to corporate-level income tax if we are unable to qualify as a RIC under Subchapter M of the Code or to satisfy RIC distribution requirements.We will be subject to corporate-level income tax if we are unable to qualify as a RIC under Subchapter M of the Code or to satisfy RIC distribution requirements.To qualify for and maintain RIC tax treatment under Subchapter M of the Code, we must, among other things, meet the following annual distribution, income source and asset diversification requirements:To qualify for and maintain RIC tax treatment under Subchapter M of the Code, we must, among other things, meet the following annual distribution, income source and asset diversification requirements:Risks Relating to an Investment in Our Common StockRisks Relating to an Investment in Our Common StockThe market price of our common stock may fluctuate significantly.The market price of our common stock may fluctuate significantly.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesIn October 9, 2024, the 2029 Notes commenced trading on the NYSE under the ticker symbol “CICB.” Although the 2029 Notes are listed on the NYSE, we cannot provide any assurances that an active trading market will develop or be maintained for the 2029 Notes or that holders will be able to sell their 2029 Notes. The 2029 Notes may trade at a discount from their initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, the time remaining to the maturity of the 2029 Notes, the outstanding principal amount of debt securities with terms identical to the 2029 Notes, the supply of debt securities trading in the secondary market, if any, the redemption or repayment features, if any, of the 2029 Notes, general economic conditions, and our financial condition, performance, prospects and other factors.In October 9, 2024, the 2029 Notes commenced trading on the NYSE under the ticker symbol “CICB.” Although the 2029 Notes are listed on the NYSE, we cannot provide any assurances that an active trading market will develop or be maintained for the 2029 Notes or that holders will be able to sell their 2029 Notes. The 2029 Notes may trade at a discount from their initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, the time remaining to the maturity of the 2029 Notes, the outstanding principal amount of debt securities with terms identical to the 2029 Notes, the supply of debt securities trading in the secondary market, if any, the redemption or repayment features, if any, of the 2029 Notes, general economic conditions, and our financial condition, performance, prospects and other factors.General Risk FactorsGeneral Risk FactorsGlobal economic, political and market conditions, including uncertainty about the financial stability of the United States, may adversely affect our business, financial condition and results of operations, including our revenue growth and profitability.Global economic, political and market conditions, including uncertainty about the financial stability of the United States, may adversely affect our business, financial condition and results of operations, including our revenue growth and profitability.Concerns over the United States’ debt ceiling and budget-deficit have driven downgrades by rating agencies to the U.S. government’s credit rating. Downgrades by rating agencies to the U.S. government’s credit rating or concerns about its credit and deficit levels in general could cause interest rates and borrowing costs to rise, which may negatively impact both the perception of credit risk associated with our debt portfolio and our ability to access the debt markets on favorable terms. In addition, a decreased U.S. government credit rating, any default by the U.S. government on its obligations, or any prolonged U.S. government shutdown, could create broader financial turmoil and uncertainty, which may weigh heavily on our financial performance and the value of our common stock. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns or a recession in the United States.Concerns over the United States’ debt ceiling and budget-deficit have driven downgrades by rating agencies to the U.S. government’s credit rating. Downgrades by rating agencies to the U.S. government’s credit rating or concerns about its credit and deficit levels in general could cause interest rates and borrowing costs to rise, which may negatively impact both the perception of credit risk associated with our debt portfolio and our ability to access the debt markets on favorable terms. In addition, a decreased U.S. government credit rating, any default by the U.S. government on its obligations, or any prolonged U.S. government shutdown, could create broader financial turmoil and uncertainty, which may weigh heavily on our financial performance and the value of our common stock. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns or a recession in the United States.Illustration. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing below. The calculation assumes (i) $1.95 billion in total assets as of December 31, 2024, (ii) a weighted average cost of funds of 7.82%, (iii) $1,117 million in debt outstanding (i.e., assumes that 89% of the $1.25 billion available to us as of December 31, 2024 under our financing arrangements as of such date is outstanding) and (iv) $821 million in shareholders’ equity. In order to compute the “Corresponding return to shareholders,” the “Assumed Return on Our Portfolio (net of expenses)” is multiplied by the assumed total assets to obtain an assumed return to us. From this amount, the interest expense is calculated by multiplying the assumed weighted average cost of funds times the assumed debt outstanding, and the product is subtracted from the assumed return to us in order to determine the return available to shareholders. The return available to shareholders is then divided by our shareholders’ equity to determine the “Corresponding return to shareholders.” Actual interest payments may be different.Risks Relating to Business Development Companies Risks Relating to Business Development Companies The requirement that we invest a sufficient portion of our assets in qualifying assets could preclude us from investing in accordance with our current business strategy; conversely, the failure to invest a sufficient portion of our assets in qualifying assets could result in our failure to maintain our status as a BDC. The requirement that we invest a sufficient portion of our assets in qualifying assets could preclude us from investing in accordance with our current business strategy; conversely, the failure to invest a sufficient portion of our assets in qualifying assets could result in our failure to maintain our status as a BDC. Regulations governing our operation as a BDC and RIC will affect our ability to raise, and the way in which we raise, additional capital or borrow for investment purposes, which may have a negative effect on our growth. Regulations governing our operation as a BDC and RIC will affect our ability to raise, and the way in which we raise, additional capital or borrow for investment purposes, which may have a negative effect on our growth. We have borrowed for investment purposes. If the value of our assets declines, we may be unable to satisfy the asset coverage test, which would prohibit us from paying distributions and could prevent us from qualifying as a RIC. If we cannot satisfy the asset coverage test, we may be required to sell a portion of our investments and, depending on the nature of our financing arrangements, repay a portion of our indebtedness at a time when such sales may be disadvantageous.We have borrowed for investment purposes. If the value of our assets declines, we may be unable to satisfy the asset coverage test, which would prohibit us from paying distributions and could prevent us from qualifying as a RIC. If we cannot satisfy the asset coverage test, we may be required to sell a portion of our investments and, depending on the nature of our financing arrangements, repay a portion of our indebtedness at a time when such sales may be disadvantageous.Under the 1940 Act, we generally are prohibited from issuing or selling our common stock at a price per share, after deducting selling commissions and dealer manager fees, that is below our NAV per share, which may be a disadvantage as compared with other public companies. However, in 2024 we obtained the approval of our shareholders to issue until August 27, 2025, shares of our common stock at prices below the then current NAV per share of our common stock in accordance with the 1940 Act. We may also, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the current NAV of our common stock if our board of directors, including our independent directors, determine that such sale is in our best interests and the best interests of our shareholders, and our shareholders, as well as those shareholders that are not affiliated with us, approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our board of directors, closely approximates the fair value of such securities.Under the 1940 Act, we generally are prohibited from issuing or selling our common stock at a price per share, after deducting selling commissions and dealer manager fees, that is below our NAV per share, which may be a disadvantage as compared with other public companies. However, in 2024 we obtained the approval of our shareholders to issue until August 27, 2025, shares of our common stock at prices below the then current NAV per share of our common stock in accordance with the 1940 Act. We may also, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the current NAV of our common stock if our board of directors, including our independent directors, determine that such sale is in our best interests and the best interests of our shareholders, and our shareholders, as well as those shareholders that are not affiliated with us, approve such sale. In any such case, the price at which our securities are to be issued and sold may not be less than a price that, in the determination of our board of directors, closely approximates the fair value of such securities.Our ability to enter into transactions with our affiliates is restricted. Our ability to enter into transactions with our affiliates is restricted. We are uncertain of our sources for funding our future capital needs; if we cannot obtain debt or equity financing on acceptable terms, our ability to acquire investments and to expand our operations will be adversely affected. We are uncertain of our sources for funding our future capital needs; if we cannot obtain debt or equity financing on acceptable terms, our ability to acquire investments and to expand our operations will be adversely affected. We will need to periodically access the capital markets to raise cash to fund new investments in excess of our repayments, and we may also need to access the capital markets to refinance existing debt obligations to the extent such maturing obligations are not repaid with availability under our secured credit facilities, which include the JPM Credit Facility and the 2025 UBS Credit Facility, or cash flows from operations. Our working capital is used for our investment opportunities, operating expenses and for payment of various fees and expenses such as base management fees, incentive fees and other expenses. Any working capital reserves we maintain may not be sufficient for investment purposes, and we may require additional debt or equity financing to operate. Accordingly, in the event that we develop a need for additional capital in the future for investments or for any other reason, these sources of funding may not be available to us. Consequently, if we cannot obtain debt or equity financing on acceptable terms, our ability to acquire investments and to expand our operations will be adversely affected. As a result, we would be less able to maintain a broad portfolio of investments and achieve our investment objective, which may negatively impact our results of operations and reduce our ability to pay distributions to our shareholders.42424242On December 30, 2021, we received approval from our shareholders to reduce our minimum "asset coverage" ratio from 200% to 150% in accordance with the 1940 Act, effective December 31, 2021. We are required to make certain disclosures on our website and in SEC filings regarding, among other things, the receipt of approval to increase our leverage, our leverage capacity and usage, and risks related to leverage. Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. We are also subject to asset coverage requirements for total borrowings under our financing arrangements. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the NAV attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause NAV to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay distributions, scheduled debt payments or other payments related to our securities. Leverage is generally considered a speculative investment technique. Because we borrow money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us. Since we have borrowed money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us. Borrowed money may also adversely affect the return on our assets, reduce cash available for distribution to our shareholders, and result in losses.Since we have borrowed money, the potential for loss on amounts invested in us is magnified and may increase the risk of investing in us. Borrowed money may also adversely affect the return on our assets, reduce cash available for distribution to our shareholders, and result in losses.Our cash is held principally at one financial institution that we believe is of high quality and at times may exceed insured limits. Cash held by us and by our portfolio companies in non-interest-bearing and interest-bearing operating accounts may exceed the FDIC insurance limits. If such banking institutions were to fail, we or our portfolio companies could lose all or a portion of those amounts held in excess of such insurance limitations. In addition, actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems, which could adversely affect our and our portfolio companies’ business, financial condition, results of operations, or prospects.Our cash is held principally at one financial institution that we believe is of high quality and at times may exceed insured limits. Cash held by us and by our portfolio companies in non-interest-bearing and interest-bearing operating accounts may exceed the FDIC insurance limits. If such banking institutions were to fail, we or our portfolio companies could lose all or a portion of those amounts held in excess of such insurance limitations. In addition, actual events involving limited liquidity, defaults, non-performance or other adverse developments that affect financial institutions, transactional counterparties or other companies in the financial services industry or the financial services industry generally, or concerns or rumors about any events of these kinds or other similar risks, have in the past and may in the future lead to market-wide liquidity problems, which could adversely affect our and our portfolio companies’ business, financial condition, results of operations, or prospects.Although we assess our banking relationships as we believe necessary or appropriate, our access to funding sources and other credit arrangements in amounts adequate to finance or capitalize our current and projected future business operations could be significantly impaired by factors that affect us, the financial institutions with which we have arrangements directly, or the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets or concerns or negative expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions or financial services industry companies with which we have financial or business relationships but could also include factors involving financial markets or the financial services industry generally.Although we assess our banking relationships as we believe necessary or appropriate, our access to funding sources and other credit arrangements in amounts adequate to finance or capitalize our current and projected future business operations could be significantly impaired by factors that affect us, the financial institutions with which we have arrangements directly, or the financial services industry or economy in general. These factors could include, among others, events such as liquidity constraints or failures, the ability to perform obligations under various types of financial, credit or liquidity agreements or arrangements, disruptions or instability in the financial services industry or financial markets or concerns or negative expectations about the prospects for companies in the financial services industry. These factors could involve financial institutions or financial services industry companies with which we have financial or business relationships but could also include factors involving financial markets or the financial services industry generally.Changes to United States tariff and import/export regulations and trade disputes with other countries may have a negative effect on our portfolio companies and, in turn, harm us.Changes to United States tariff and import/export regulations and trade disputes with other countries may have a negative effect on our portfolio companies and, in turn, harm us.We are highly dependent on communications and information systems of CIG and operational risks including systems failures could significantly disrupt our business, result in losses or limit our growth, which may, in turn, negatively affect the market price of our common stock and our ability to pay distributions.We are highly dependent on communications and information systems of CIG and operational risks including systems failures could significantly disrupt our business, result in losses or limit our growth, which may, in turn, negatively affect the market price of our common stock and our ability to pay distributions.Furthermore, a disaster or a disruption in the infrastructure that supports our businesses, including a disruption involving electronic communications, human resources systems or other services used by us, CIM or third parties with whom we conduct business could have a material adverse effect on our ability to continue to operate our businesses without interruption. Although we and CIG have disaster recovery programs in place, these may not be sufficient to mitigate the harm that may result from such a disaster or disruption. In addition, insurance and other safeguards might only partially reimburse us for any losses as a result of such a disaster or disruption, if at all.Furthermore, a disaster or a disruption in the infrastructure that supports our businesses, including a disruption involving electronic communications, human resources systems or other services used by us, CIM or third parties with whom we conduct business could have a material adverse effect on our ability to continue to operate our businesses without interruption. Although we and CIG have disaster recovery programs in place, these may not be sufficient to mitigate the harm that may result from such a disaster or disruption. In addition, insurance and other safeguards might only partially reimburse us for any losses as a result of such a disaster or disruption, if at all.We and CIG also rely on third-party service providers for certain aspects of our respective businesses, including for certain information systems, technology and administration of our portfolio company investments and compliance matters. Operational risks could increase as vendors increasingly offer mobile and cloud-based software services rather than software services that can be operated within CIG’s own data centers, as certain aspects of the security of such technologies may be complex, unpredictable or beyond our or CIG’s control, and any failure by mobile technology or cloud service providers to adequately safeguard their systems and prevent cyber-attacks could disrupt our operations and result in misappropriation, corruption or loss of confidential, proprietary or personal information. In addition, our counterparties’ information systems, technology or accounts may be the target of cyber-attacks. Any interruption or deterioration in the performance of these third parties or the service providers of our counterparties or failures or vulnerabilities of their respective information systems or technology could impair the quality of our operations and could impact our reputation, adversely affect our businesses and limit our ability to grow.We and CIG also rely on third-party service providers for certain aspects of our respective businesses, including for certain information systems, technology and administration of our portfolio company investments and compliance matters. Operational risks could increase as vendors increasingly offer mobile and cloud-based software services rather than software services that can be operated within CIG’s own data centers, as certain aspects of the security of such technologies may be complex, unpredictable or beyond our or CIG’s control, and any failure by mobile technology or cloud service providers to adequately safeguard their systems and prevent cyber-attacks could disrupt our operations and result in misappropriation, corruption or loss of confidential, proprietary or personal information. In addition, our counterparties’ information systems, technology or accounts may be the target of cyber-attacks. Any interruption or deterioration in the performance of these third parties or the service providers of our counterparties or failures or vulnerabilities of their respective information systems or technology could impair the quality of our operations and could impact our reputation, adversely affect our businesses and limit our ability to grow.Finally, there has been significant evolution and developments in the use of artificial intelligence technologies, such as GPT-4o. We cannot fully determine the impact of such evolving technology to our business at this time.Finally, there has been significant evolution and developments in the use of artificial intelligence technologies, such as GPT-4o. We cannot fully determine the impact of such evolving technology to our business at this time.Cybersecurity failures and data security incidents could adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential, personal or other sensitive information and/or damage to our business relationships or reputation, any of which could negatively impact our business, financial condition and operating results.Cybersecurity failures and data security incidents could adversely affect our business by causing a disruption to our operations, a compromise or corruption of our confidential, personal or other sensitive information and/or damage to our business relationships or reputation, any of which could negatively impact our business, financial condition and operating results.Our portfolio companies also rely on similar systems and face similar risks. A disruption or compromise of these systems could have a material adverse effect on the value of these businesses. We may invest in strategic assets having a national or regional profile, the nature of which could expose them to a greater risk of being subject to a terrorist attack or cyber-attack than other assets or businesses. Such an event may have material adverse consequences on our investments or may require portfolio companies to increase preventative security measures or expand insurance coverage.Our portfolio companies also rely on similar systems and face similar risks. A disruption or compromise of these systems could have a material adverse effect on the value of these businesses. We may invest in strategic assets having a national or regional profile, the nature of which could expose them to a greater risk of being subject to a terrorist attack or cyber-attack than other assets or businesses. Such an event may have material adverse consequences on our investments or may require portfolio companies to increase preventative security measures or expand insurance coverage.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesThe 2029 Notes are a recent issue of debt securities. On October 9, 2024, the 2029 Notes commenced trading on the NYSE under the ticker symbol “CICB.” Although the 2029 Notes are listed on the NYSE, we cannot provide any assurances that an active trading market will develop or be maintained for the 2029 Notes or that holders will be able to sell their 2029 Notes. The 2029 Notes may trade at a discount from their initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, the time remaining to the maturity of the 2029 Notes, the outstanding principal amount of debt securities with terms identical to the 2029 Notes, the supply of debt securities trading in the secondary market, if any, the redemption or repayment features, if any, of the 2029 Notes, general economic conditions, and our financial condition, performance, prospects and other factors.In October 9, 2024, the 2029 Notes commenced trading on the NYSE under the ticker symbol “CICB.” Although the 2029 Notes are listed on the NYSE, we cannot provide any assurances that an active trading market will develop or be maintained for the 2029 Notes or that holders will be able to sell their 2029 Notes. The 2029 Notes may trade at a discount from their initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, the time remaining to the maturity of the 2029 Notes, the outstanding principal amount of debt securities with terms identical to the 2029 Notes, the supply of debt securities trading in the secondary market, if any, the redemption or repayment features, if any, of the 2029 Notes, general economic conditions, and our financial condition, performance, prospects and other factors.Risks Relating to an Investment in Our Common StockRisks Relating to an Investment in Our Common StockThe market price of our common stock may fluctuate significantly.The market price of our common stock may fluctuate significantly.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesIllustration. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing below. The calculation assumes (i) $1.95 billion in total assets as of December 31, 2024, (ii) a weighted average cost of funds of 7.82%, (iii) $1,117 million in debt outstanding (i.e., assumes that 89% of the $1.25 billion available to us as of December 31, 2024 under our financing arrangements as of such date is outstanding) and (iv) $821 million in shareholders’ equity. In order to compute the “Corresponding return to shareholders,” the “Assumed Return on Our Portfolio (net of expenses)” is multiplied by the assumed total assets to obtain an assumed return to us. From this amount, the interest expense is calculated by multiplying the assumed weighted average cost of funds times the assumed debt outstanding, and the product is subtracted from the assumed return to us in order to determine the return available to shareholders. The return available to shareholders is then divided by our shareholders’ equity to determine the “Corresponding return to shareholders.” Actual interest payments may be different.Risks Relating to Business Development Companies Risks Relating to Business Development Companies The requirement that we invest a sufficient portion of our assets in qualifying assets could preclude us from investing in accordance with our current business strategy; conversely, the failure to invest a sufficient portion of our assets in qualifying assets could result in our failure to maintain our status as a BDC. The requirement that we invest a sufficient portion of our assets in qualifying assets could preclude us from investing in accordance with our current business strategy; conversely, the failure to invest a sufficient portion of our assets in qualifying assets could result in our failure to maintain our status as a BDC. General Risk FactorsGeneral Risk FactorsGlobal economic, political and market conditions, including uncertainty about the financial stability of the United States, may adversely affect our business, financial condition and results of operations, including our revenue growth and profitability.Global economic, political and market conditions, including uncertainty about the financial stability of the United States, may adversely affect our business, financial condition and results of operations, including our revenue growth and profitability.Concerns over the United States’ debt ceiling and budget-deficit have driven downgrades by rating agencies to the U.S. government’s credit rating. Downgrades by rating agencies to the U.S. government’s credit rating or concerns about its credit and deficit levels in general could cause interest rates and borrowing costs to rise, which may negatively impact both the perception of credit risk associated with our debt portfolio and our ability to access the debt markets on favorable terms. In addition, a decreased U.S. government credit rating, any default by the U.S. government on its obligations, or any prolonged U.S. government shutdown, could create broader financial turmoil and uncertainty, which may weigh heavily on our financial performance and the value of our common stock. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns or a recession in the United States.Concerns over the United States’ debt ceiling and budget-deficit have driven downgrades by rating agencies to the U.S. government’s credit rating. Downgrades by rating agencies to the U.S. government’s credit rating or concerns about its credit and deficit levels in general could cause interest rates and borrowing costs to rise, which may negatively impact both the perception of credit risk associated with our debt portfolio and our ability to access the debt markets on favorable terms. In addition, a decreased U.S. government credit rating, any default by the U.S. government on its obligations, or any prolonged U.S. government shutdown, could create broader financial turmoil and uncertainty, which may weigh heavily on our financial performance and the value of our common stock. U.S. debt ceiling and budget deficit concerns have increased the possibility of additional credit-rating downgrades and economic slowdowns or a recession in the United States.Various social and political circumstances in the U.S. and around the world, including wars, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes, and health epidemics, may contribute to market volatility and broader economic uncertainty, which in turn could adversely affect our business, financial condition and operating results.Various social and political circumstances in the U.S. and around the world, including wars, terrorist acts, security operations and catastrophic events such as fires, floods, earthquakes, tornadoes, hurricanes, and health epidemics, may contribute to market volatility and broader economic uncertainty, which in turn could adversely affect our business, financial condition and operating results.Our articles of incorporation and bylaws, as well as certain statutory and regulatory requirements, contain provisions that may discourage a third party from attempting to acquire us, which could prevent our shareholders from receiving a premium in the event of a change of control.Our articles of incorporation and bylaws, as well as certain statutory and regulatory requirements, contain provisions that may discourage a third party from attempting to acquire us, which could prevent our shareholders from receiving a premium in the event of a change of control.Investing in our common stock involves a high degree of risk.Investing in our common stock involves a high degree of risk.The NAV of our common stock may fluctuate significantly.The NAV of our common stock may fluctuate significantly.Purchases of our common stock by us pursuant to our 10b5-1 plan may result in dilution to our NAV per share.Purchases of our common stock by us pursuant to our 10b5-1 plan may result in dilution to our NAV per share.The tax treatment of a non-U.S. shareholder in its jurisdiction of tax residence will depend entirely on the laws of such jurisdiction and may vary considerably, which could adversely affect the after-tax return for non-U.S. investors.The tax treatment of a non-U.S. shareholder in its jurisdiction of tax residence will depend entirely on the laws of such jurisdiction and may vary considerably, which could adversely affect the after-tax return for non-U.S. investors.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesThe 2029 Notes are a recent issue of debt securities. On October 9, 2024, the 2029 Notes commenced trading on the NYSE under the ticker symbol “CICB.” Although the 2029 Notes are listed on the NYSE, we cannot provide any assurances that an active trading market will develop or be maintained for the 2029 Notes or that holders will be able to sell their 2029 Notes. The 2029 Notes may trade at a discount from their initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, the time remaining to the maturity of the 2029 Notes, the outstanding principal amount of debt securities with terms identical to the 2029 Notes, the supply of debt securities trading in the secondary market, if any, the redemption or repayment features, if any, of the 2029 Notes, general economic conditions, and our financial condition, performance, prospects and other factors.In October 9, 2024, the 2029 Notes commenced trading on the NYSE under the ticker symbol “CICB.” Although the 2029 Notes are listed on the NYSE, we cannot provide any assurances that an active trading market will develop or be maintained for the 2029 Notes or that holders will be able to sell their 2029 Notes. The 2029 Notes may trade at a discount from their initial offering price depending on prevailing interest rates, the market for similar securities, our credit ratings, the time remaining to the maturity of the 2029 Notes, the outstanding principal amount of debt securities with terms identical to the 2029 Notes, the supply of debt securities trading in the secondary market, if any, the redemption or repayment features, if any, of the 2029 Notes, general economic conditions, and our financial condition, performance, prospects and other factors.Risks Relating to an Investment in Our Common StockRisks Relating to an Investment in Our Common StockThe market price of our common stock may fluctuate significantly.The market price of our common stock may fluctuate significantly.Illustration. The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing below. The calculation assumes (i) $1.95 billion in total assets as of December 31, 2024, (ii) a weighted average cost of funds of 7.82%, (iii) $1,117 million in debt outstanding (i.e., assumes that 89% of the $1.25 billion available to us as of December 31, 2024 under our financing arrangements as of such date is outstanding) and (iv) $821 million in shareholders’ equity. In order to compute the “Corresponding return to shareholders,” the “Assumed Return on Our Portfolio (net of expenses)” is multiplied by the assumed total assets to obtain an assumed return to us. From this amount, the interest expense is calculated by multiplying the assumed weighted average cost of funds times the assumed debt outstanding, and the product is subtracted from the assumed return to us in order to determine the return available to shareholders. The return available to shareholders is then divided by our shareholders’ equity to determine the “Corresponding return to shareholders.” Actual interest payments may be different.Risks Relating to Business Development Companies Risks Relating to Business Development Companies The requirement that we invest a sufficient portion of our assets in qualifying assets could preclude us from investing in accordance with our current business strategy; conversely, the failure to invest a sufficient portion of our assets in qualifying assets could result in our failure to maintain our status as a BDC. Conversely, if we fail to invest a sufficient portion of our assets in qualifying assets, we could lose our status as a BDC, which would have a material adverse effect on our business, financial condition and results of operations. Similarly, these rules could prevent us from making additional investments in existing portfolio companies, which could result in the dilution of our position, or could require us to dispose of investments at an inopportune time to comply with the 1940 Act. If we were forced to sell non-qualifying investments in the portfolio for compliance purposes, the proceeds from such sale could be significantly less than the current value of such investments.The requirement that we invest a sufficient portion of our assets in qualifying assets could preclude us from investing in accordance with our current business strategy; conversely, the failure to invest a sufficient portion of our assets in qualifying assets could result in our failure to maintain our status as a BDC. Conversely, if we fail to invest a sufficient portion of our assets in qualifying assets, we could lose our status as a BDC, which would have a material adverse effect on our business, financial condition and results of operations. Similarly, these rules could prevent us from making additional investments in existing portfolio companies, which could result in the dilution of our position, or could require us to dispose of investments at an inopportune time to comply with the 1940 Act. If we were forced to sell non-qualifying investments in the portfolio for compliance purposes, the proceeds from such sale could be significantly less than the current value of such investments.In addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates, tighter covenants or reduced credit availability, which could adversely impact our ability to fund further investments or expand our operations.In addition, investor concerns regarding the U.S. or international financial systems could result in less favorable commercial financing terms, including higher interest rates, tighter covenants or reduced credit availability, which could adversely impact our ability to fund further investments or expand our operations.Various social and political circumstances in the U.S. and around the world, including trade tensions, regulatory changes or geopolitical conflicts, may adversely affect our business and the performance of our portfolio companies.Various social and political circumstances in the U.S. and around the world, including trade tensions, regulatory changes or geopolitical conflicts, may adversely affect our business and the performance of our portfolio companies.Our business is highly dependent on communications and information systems of CIG, and any operational failures, cyber-attacks or other disruptions in these systems could result in significant business interruptions, losses or harm to our reputation.Our business is highly dependent on communications and information systems of CIG, and any operational failures, cyber-attacks or other disruptions in these systems could result in significant business interruptions, losses or harm to our reputation.Furthermore, a disaster or disruption in the infrastructure that supports our operations, such as failures in electronic communications, human resources systems or other critical services, could materially impair our ability to conduct business.Furthermore, a disaster or disruption in the infrastructure that supports our operations, such as failures in electronic communications, human resources systems or other critical services, could materially impair our ability to conduct business.We and CIG also rely on third-party service providers for certain aspects of our business, including for technology and administrative functions. Any failure by these third parties to perform or any security breach affecting them could adversely affect our operations and results.We and CIG also rely on third-party service providers for certain aspects of our business, including for technology and administrative functions. Any failure by these third parties to perform or any security breach affecting them could adversely affect our operations and results.Finally, there has been significant evolution in the use of artificial intelligence technologies, such as GPT-4o. We cannot fully determine the impact of these evolving technologies on our business at this time.Finally, there has been significant evolution in the use of artificial intelligence technologies, such as GPT-4o. We cannot fully determine the impact of these evolving technologies on our business at this time.Cybersecurity failures and data security incidents could adversely affect our business by causing disruptions, compromising confidential information and damaging our relationships or reputation.Cybersecurity failures and data security incidents could adversely affect our business by causing disruptions, compromising confidential information and damaging our relationships or reputation.Although we are not currently aware of any cyber-attacks or security incidents that have materially affected our operations, the increasing sophistication and frequency of such threats pose an ongoing risk that could negatively impact our business and financial condition.Although we are not currently aware of any cyber-attacks or security incidents that have materially affected our operations, the increasing sophistication and frequency of such threats pose an ongoing risk that could negatively impact our business and financial condition.In addition, our cash is held principally at one financial institution. If that institution were to fail, amounts in excess of federally insured limits could be lost, which would adversely affect our liquidity.In addition, our cash is held principally at one financial institution. If that institution were to fail, amounts in excess of federally insured limits could be lost, which would adversely affect our liquidity.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesA downgrade, suspension or withdrawal of a credit rating assigned by a rating agency to us, our unsecured debt or the 2029 Notes or a change in the debt markets could cause the liquidity or market value of the 2029 Notes to decline significantly.A downgrade, suspension or withdrawal of a credit rating assigned by a rating agency to us, our unsecured debt or the 2029 Notes or a change in the debt markets could cause the liquidity or market value of the 2029 Notes to decline significantly.The optional redemption provision may materially adversely affect holders’ return on the 2029 Notes.The optional redemption provision may materially adversely affect holders’ return on the 2029 Notes.Our credit ratings, which assess our ability to pay our debts when due, could change adversely, which in turn could negatively impact the market value of the 2029 Notes.Our credit ratings, which assess our ability to pay our debts when due, could change adversely, which in turn could negatively impact the market value of the 2029 Notes.General Risk FactorsGeneral Risk FactorsGlobal economic, political and market conditions, including uncertainty about the financial stability of the United States, may adversely affect our business, financial condition and results of operations, including our revenue growth and profitability.Global economic, political and market conditions, including uncertainty about the financial stability of the United States, may adversely affect our business, financial condition and results of operations, including our revenue growth and profitability.Concerns over the United States’ debt ceiling and budget-deficit have driven downgrades of the U.S. government’s credit rating, which could raise interest rates and negatively affect our ability to access capital.Concerns over the United States’ debt ceiling and budget-deficit have driven downgrades of the U.S. government’s credit rating, which could raise interest rates and negatively affect our ability to access capital.Various social and political tensions, both domestic and international, may lead to increased market volatility and economic uncertainty, adversely impacting our operations and those of our portfolio companies.Various social and political tensions, both domestic and international, may lead to increased market volatility and economic uncertainty, adversely impacting our operations and those of our portfolio companies.Our articles of incorporation and bylaws contain anti-takeover provisions that may discourage a change of control and affect the premium that shareholders might otherwise receive.Our articles of incorporation and bylaws contain anti-takeover provisions that may discourage a change of control and affect the premium that shareholders might otherwise receive.Investing in our common stock involves a high degree of risk, and the market price and liquidity of our shares may be subject to significant volatility due to various factors beyond our control.Investing in our common stock involves a high degree of risk, and the market price and liquidity of our shares may be subject to significant volatility due to various factors beyond our control.The NAV of our common stock may fluctuate significantly, and there is no assurance that the market price will trade at, or above, NAV.The NAV of our common stock may fluctuate significantly, and there is no assurance that the market price will trade at, or above, NAV.Purchases of our common stock under our 10b5-1 plan may result in dilution to our NAV per share, thereby reducing the value of an investment in our common stock.Purchases of our common stock under our 10b5-1 plan may result in dilution to our NAV per share, thereby reducing the value of an investment in our common stock.The tax treatment for non-U.S. shareholders may vary widely depending on local laws and could adversely affect their returns.The tax treatment for non-U.S. shareholders may vary widely depending on local laws and could adversely affect their returns.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesIn addition, if the 2029 Notes are downgraded, become unrated, or if the optional redemption features are exercised when interest rates are lower, holders may suffer losses or be unable to reinvest proceeds at comparable rates.In addition, if the 2029 Notes are downgraded, become unrated, or if the optional redemption features are exercised when interest rates are lower, holders may suffer losses or be unable to reinvest proceeds at comparable rates.General Risk Factors also encompass the numerous external risks that could arise from global economic, political and market uncertainty, any of which could adversely affect our business, performance and the value of our investments.General Risk Factors also encompass the numerous external risks that could arise from global economic, political and market uncertainty, any of which could adversely affect our business, performance and the value of our investments.Although we are not currently aware of any cyber-attacks or other security incidents that, individually or in the aggregate, have materially affected our operations or financial condition, there has been an increase in the frequency and sophistication of cyber threats. Such cybersecurity failures could disrupt our operations, compromise confidential information and damage our reputation.Although we are not currently aware of any cyber-attacks or other security incidents that, individually or in the aggregate, have materially affected our operations or financial condition, there has been an increase in the frequency and sophistication of cyber threats. Such cybersecurity failures could disrupt our operations, compromise confidential information and damage our reputation.As our reliance on information systems and technology increases, so does our vulnerability to operational, cybersecurity and third-party risks which may adversely impact our business, financial condition and results of operations.As our reliance on information systems and technology increases, so does our vulnerability to operational, cybersecurity and third-party risks which may adversely impact our business, financial condition and results of operations.Additionally, as a result of recent events including the 2024 U.S. election, uncertainties regarding changes in political, regulatory and trade policies further exacerbate the risks inherent in our business and financial markets.Additionally, as a result of recent events including the 2024 U.S. election, uncertainties regarding changes in political, regulatory and trade policies further exacerbate the risks inherent in our business and financial markets.Risks Relating to an Investment in Our Public 2029 Notes – ContinuedRisks Relating to an Investment in Our Public 2029 Notes – ContinuedIn addition, if key economic indicators, such as inflation or employment levels, do not evolve as expected, our cost of capital and the performance of our investments could be adversely affected, which in turn could have a material adverse impact on our ability to meet associated financial obligations and pay distributions.In addition, if key economic indicators, such as inflation or employment levels, do not evolve as expected, our cost of capital and the performance of our investments could be adversely affected, which in turn could have a material adverse impact on our ability to meet associated financial obligations and pay distributions.Various social, political and economic disruptions – including shifts in U.S. monetary policy, geopolitical conflicts, and regulatory changes – may furthermore lead to periods of market volatility and economic uncertainty, which could negatively affect our business and the value of our securities.Various social, political and economic disruptions – including shifts in U.S. monetary policy, geopolitical conflicts, and regulatory changes – may furthermore lead to periods of market volatility and economic uncertainty, which could negatively affect our business and the value of our securities.Risks Relating to Our Business Development Companies and Related GovernanceRisks Relating to Our Business Development Companies and Related GovernanceIf we do not remain a BDC, or if we are forced to alter our investment strategy due to regulatory requirements applicable to BDCs, our operating flexibility could be significantly diminished, with corresponding adverse effects on our business and financial condition.If we do not remain a BDC, or if we are forced to alter our investment strategy due to regulatory requirements applicable to BDCs, our operating flexibility could be significantly diminished, with corresponding adverse effects on our business and financial condition.Regulations governing our operation as a BDC and RIC – including restrictions on leverage, asset coverage, and distribution requirements – could limit our ability to grow, increase our investments or access capital, which may materially adversely affect our operating results and future prospects.Regulations governing our operation as a BDC and RIC – including restrictions on leverage, asset coverage, and distribution requirements – could limit our ability to grow, increase our investments or access capital, which may materially adversely affect our operating results and future prospects.In August 2024, we obtained approval from our shareholders to issue shares of our common stock at prices below the then current NAV per share during a 12-month period, which could result in dilution of existing shareholders’ interests.In August 2024, we obtained approval from our shareholders to issue shares of our common stock at prices below the then current NAV per share during a 12-month period, which could result in dilution of existing shareholders’ interests.Potential investors will not have preemptive rights to any additional common stock we may issue, which could further dilute their ownership interests and adversely affect the market price of our common stock.Potential investors will not have preemptive rights to any additional common stock we may issue, which could further dilute their ownership interests and adversely affect the market price of our common stock.If during any period the market for our common stock is disrupted or our common stock trades at a significant discount to NAV, our ability to raise additional capital through equity offerings could be impaired.If during any period the market for our common stock is disrupted or our common stock trades at a significant discount to NAV, our ability to raise additional capital through equity offerings could be impaired.The tax treatment of certain income or distributions for non-U.S. shareholders may vary significantly from that for U.S. shareholders, potentially adversely affecting their after-tax returns.The tax treatment of certain income or distributions for non-U.S. shareholders may vary significantly from that for U.S. shareholders, potentially adversely affecting their after-tax returns.Risks Relating to an Investment in Our Public 2029 Notes – ContinuedRisks Relating to an Investment in Our Public 2029 Notes – ContinuedThe optional redemption feature of the 2029 Notes, which may be exercised at times when interest rates are less favorable, could materially affect holders’ ability to reinvest redemption proceeds at comparable rates.The optional redemption feature of the 2029 Notes, which may be exercised at times when interest rates are less favorable, could materially affect holders’ ability to reinvest redemption proceeds at comparable rates.A downgrade, suspension or withdrawal of our credit ratings could materially impact the trading market and market value of the 2029 Notes.A downgrade, suspension or withdrawal of our credit ratings could materially impact the trading market and market value of the 2029 Notes.Various disruptions in the global capital markets – including volatility, illiquidity and adverse funding conditions – could result in significant write-offs, impairments and difficulties in accessing additional capital, which may adversely affect both our business and our portfolio companies’ performance.Various disruptions in the global capital markets – including volatility, illiquidity and adverse funding conditions – could result in significant write-offs, impairments and difficulties in accessing additional capital, which may adversely affect both our business and our portfolio companies’ performance.Our business is directly influenced by the economic cycle and could be significantly affected by a downturn in economic activity in the U.S. or globally, which could adversely impact revenue, profitability and the value of our investments.Our business is directly influenced by the economic cycle and could be significantly affected by a downturn in economic activity in the U.S. or globally, which could adversely impact revenue, profitability and the value of our investments.In addition, if key economic indicators such as unemployment or inflation do not move as expected, our funding costs and the performance of our investments may be negatively impacted.In addition, if key economic indicators such as unemployment or inflation do not move as expected, our funding costs and the performance of our investments may be negatively impacted.Various social and political events – including elections, policy changes and international conflicts – could contribute to market instability and adversely affect our business and investment results.Various social and political events – including elections, policy changes and international conflicts – could contribute to market instability and adversely affect our business and investment results.Our articles of incorporation and bylaws include anti-takeover provisions that could deter a change of control and materially reduce the potential acquisition premium for our common stock.Our articles of incorporation and bylaws include anti-takeover provisions that could deter a change of control and materially reduce the potential acquisition premium for our common stock.Investing in our common stock involves a high degree of risk, and the value of your investment could decline significantly.Investing in our common stock involves a high degree of risk, and the value of your investment could decline significantly.The NAV of our common stock may fluctuate significantly, and there is no assurance that the market price of our shares will trade at or above NAV, which could reduce the value of your investment.The NAV of our common stock may fluctuate significantly, and there is no assurance that the market price of our shares will trade at or above NAV, which could reduce the value of your investment.Purchases of our common stock under our 10b5-1 plan may result in dilution of your ownership interest and a reduction in NAV per share.Purchases of our common stock under our 10b5-1 plan may result in dilution of your ownership interest and a reduction in NAV per share.The tax treatment of an investment in us for non-U.S. shareholders is subject to complex rules that may reduce the after-tax return on their investment.The tax treatment of an investment in us for non-U.S. shareholders is subject to complex rules that may reduce the after-tax return on their investment.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesThe optional redemption provision of the 2029 Notes may be exercised at our sole discretion at times when prevailing interest rates are lower than the coupon rate on the 2029 Notes, which could force holders to reinvest redemption proceeds in lower-yielding securities, adversely affecting their return.The optional redemption provision of the 2029 Notes may be exercised at our sole discretion at times when prevailing interest rates are lower than the coupon rate on the 2029 Notes, which could force holders to reinvest redemption proceeds in lower-yielding securities, adversely affecting their return.Our credit ratings, as assigned by third-party rating agencies, are subject to change and such changes could adversely affect the market value and liquidity of the 2029 Notes.Our credit ratings, as assigned by third-party rating agencies, are subject to change and such changes could adversely affect the market value and liquidity of the 2029 Notes.Various disruptions in the capital markets – including volatility, liquidity issues and adverse funding conditions – could negatively affect the valuations of our investments and our ability to raise additional capital.Various disruptions in the capital markets – including volatility, liquidity issues and adverse funding conditions – could negatively affect the valuations of our investments and our ability to raise additional capital.Changes to U.S. tariff and import/export regulations, and trade disputes with other countries, could adversely affect our portfolio companies and, in turn, harm our business.Changes to U.S. tariff and import/export regulations, and trade disputes with other countries, could adversely affect our portfolio companies and, in turn, harm our business.Our articles of incorporation and bylaws, as well as applicable statutory and regulatory requirements, contain provisions that could deter a change of control, potentially limiting the premium that shareholders might receive in such an event.Our articles of incorporation and bylaws, as well as applicable statutory and regulatory requirements, contain provisions that could deter a change of control, potentially limiting the premium that shareholders might receive in such an event.Investing in our common stock involves a high degree of risk. The continued volatility in the market and the uncertainty surrounding the future performance of our business mean that an investment in our common stock could result in a loss of principal.Investing in our common stock involves a high degree of risk. The continued volatility in the market and the uncertainty surrounding the future performance of our business mean that an investment in our common stock could result in a loss of principal.The NAV of our common stock may fluctuate significantly due to changes in the value of our portfolio investments and market conditions, which could reduce the value of your investment.The NAV of our common stock may fluctuate significantly due to changes in the value of our portfolio investments and market conditions, which could reduce the value of your investment.Purchases of our common stock under our 10b5-1 plan may result in dilution to your interest in our common stock, potentially reducing the value of your investment.Purchases of our common stock under our 10b5-1 plan may result in dilution to your interest in our common stock, potentially reducing the value of your investment.The tax treatment of a non-U.S. shareholder in its jurisdiction of tax residence will depend entirely on the applicable local laws, which may vary considerably and could adversely impact the after-tax return on an investment in our securities.The tax treatment of a non-U.S. shareholder in its jurisdiction of tax residence will depend entirely on the applicable local laws, which may vary considerably and could adversely impact the after-tax return on an investment in our securities.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesThe optional redemption feature of the 2029 Notes may materially adversely affect holders’ returns if exercised when prevailing interest rates are lower than the stated rate on the Notes, leaving holders with reinvestment risk.The optional redemption feature of the 2029 Notes may materially adversely affect holders’ returns if exercised when prevailing interest rates are lower than the stated rate on the Notes, leaving holders with reinvestment risk.A downgrade, suspension or withdrawal of our credit ratings could adversely affect the liquidity and market value of the 2029 Notes.A downgrade, suspension or withdrawal of our credit ratings could adversely affect the liquidity and market value of the 2029 Notes.Various disruptions in the global capital markets may result in significant volatility and could negatively affect the valuations of our investments, which would in turn adversely impact our business and results of operations.Various disruptions in the global capital markets may result in significant volatility and could negatively affect the valuations of our investments, which would in turn adversely impact our business and results of operations.Various social, political and economic uncertainties, including concerns regarding U.S. and international fiscal policies, trade disputes and geopolitical conflicts, may continue to pose material risks to our business.Various social, political and economic uncertainties, including concerns regarding U.S. and international fiscal policies, trade disputes and geopolitical conflicts, may continue to pose material risks to our business.Our business is highly dependent on communications and information systems of CIG and other third-party providers. A significant disruption or cyber-attack targeting these systems could adversely affect our business operations, financial condition and reputation.Our business is highly dependent on communications and information systems of CIG and other third-party providers. A significant disruption or cyber-attack targeting these systems could adversely affect our business operations, financial condition and reputation.Furthermore, a disaster or disruption affecting our or our service providers’ infrastructure may prevent us from operating effectively and could result in material losses.Furthermore, a disaster or disruption affecting our or our service providers’ infrastructure may prevent us from operating effectively and could result in material losses.We and CIG rely on third-party vendors for certain critical services and any failure on their part to perform their obligations could adversely impact our business.We and CIG rely on third-party vendors for certain critical services and any failure on their part to perform their obligations could adversely impact our business.Finally, recent developments in artificial intelligence technologies, such as GPT-4o, introduce unknown risks, and we cannot fully predict the impact these evolving technologies might have on our business.Finally, recent developments in artificial intelligence technologies, such as GPT-4o, introduce unknown risks, and we cannot fully predict the impact these evolving technologies might have on our business.There may be substantial financial penalties or fines for breach of privacy laws, which could also result in reputational harm and additional legal costs.There may be substantial financial penalties or fines for breach of privacy laws, which could also result in reputational harm and additional legal costs.Potential investors will not have preemptive rights to any additional common stock we may issue in the future, which could dilute their ownership interest and adversely affect the market price of our common stock.Potential investors will not have preemptive rights to any additional common stock we may issue in the future, which could dilute their ownership interest and adversely affect the market price of our common stock.In August 2024, we obtained shareholder approval to issue shares of our common stock at prices below the then-current NAV per share for a 12-month period. Any such issuance could materially dilute existing shareholders’ interests and reduce NAV per share.In August 2024, we obtained shareholder approval to issue shares of our common stock at prices below the then-current NAV per share for a 12-month period. Any such issuance could materially dilute existing shareholders’ interests and reduce NAV per share.The determination of NAV in connection with equity offerings requires our board to ensure that shares are not sold below the then-current NAV per share unless approved by shareholders, and failure to do so could result in dilution and adverse market effects.The determination of NAV in connection with equity offerings requires our board to ensure that shares are not sold below the then-current NAV per share unless approved by shareholders, and failure to do so could result in dilution and adverse market effects.A shareholder’s interest in our common stock will be diluted if we issue additional shares, potentially reducing the overall value of an investment in our common stock.A shareholder’s interest in our common stock will be diluted if we issue additional shares, potentially reducing the overall value of an investment in our common stock.The tax treatment for non-U.S. shareholders depends on the laws of their jurisdiction, which may vary and could result in unexpected tax liabilities or reduced deductions.The tax treatment for non-U.S. shareholders depends on the laws of their jurisdiction, which may vary and could result in unexpected tax liabilities or reduced deductions.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesThe optional redemption provision may materially adversely affect holders’ return on the 2029 Notes. We may choose to redeem the Notes when prevailing interest rates are lower, and holders may not be able to reinvest redemption proceeds at similar rates.The optional redemption provision may materially adversely affect holders’ return on the 2029 Notes. We may choose to redeem the Notes when prevailing interest rates are lower, and holders may not be able to reinvest redemption proceeds at similar rates.A downgrade, suspension or withdrawal of our credit ratings could further depress the market value of the 2029 Notes.A downgrade, suspension or withdrawal of our credit ratings could further depress the market value of the 2029 Notes.Various disruptions in the global capital markets may lead to reduced liquidity and valuation volatility of the 2029 Notes, which could adversely affect holders’ returns.Various disruptions in the global capital markets may lead to reduced liquidity and valuation volatility of the 2029 Notes, which could adversely affect holders’ returns.Our business is directly influenced by the economic cycle and could be negatively impacted by a downturn in economic activity, which in turn could affect our investment income and our ability to make distributions.Our business is directly influenced by the economic cycle and could be negatively impacted by a downturn in economic activity, which in turn could affect our investment income and our ability to make distributions.Various economic, political and market uncertainties, including those arising from changes in U.S. fiscal policy, geopolitical conflicts and international trade disputes, could adversely affect our business and the valuation of our investments.Various economic, political and market uncertainties, including those arising from changes in U.S. fiscal policy, geopolitical conflicts and international trade disputes, could adversely affect our business and the valuation of our investments.Our articles of incorporation and bylaws contain provisions that may deter takeover attempts, which could limit the potential premium to our common stock in a change of control scenario.Our articles of incorporation and bylaws contain provisions that may deter takeover attempts, which could limit the potential premium to our common stock in a change of control scenario.Investing in our common stock involves a high degree of risk, and the market price of our common stock may be highly volatile due to factors beyond our control.Investing in our common stock involves a high degree of risk, and the market price of our common stock may be highly volatile due to factors beyond our control.The NAV of our common stock may fluctuate significantly because of changes in the value of our investment portfolio, which could adversely affect your investment.The NAV of our common stock may fluctuate significantly because of changes in the value of our investment portfolio, which could adversely affect your investment.Purchases of our common stock under our 10b5-1 plan may lead to dilution of shareholders’ interests and a reduction in NAV per share.Purchases of our common stock under our 10b5-1 plan may lead to dilution of shareholders’ interests and a reduction in NAV per share.The tax treatment of a non-U.S. shareholder in its jurisdiction may differ significantly from that for U.S. shareholders, potentially reducing net returns.The tax treatment of a non-U.S. shareholder in its jurisdiction may differ significantly from that for U.S. shareholders, potentially reducing net returns.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesThe 2029 Notes are subject to liquidity and credit risks, including the possibility that an active secondary market may not develop, which could make it difficult for holders to sell their Notes at favorable prices.The 2029 Notes are subject to liquidity and credit risks, including the possibility that an active secondary market may not develop, which could make it difficult for holders to sell their Notes at favorable prices.The optional redemption provision may be exercised at times that are unfavorable to holders, potentially forcing them to reinvest at lower yields.The optional redemption provision may be exercised at times that are unfavorable to holders, potentially forcing them to reinvest at lower yields.Our credit ratings may be downgraded, which could adversely affect the market price and liquidity of the 2029 Notes.Our credit ratings may be downgraded, which could adversely affect the market price and liquidity of the 2029 Notes.Various global economic, political and market conditions, including uncertainty regarding fiscal policies and structural economic challenges, could negatively affect our business and the value of our investments.Various global economic, political and market conditions, including uncertainty regarding fiscal policies and structural economic challenges, could negatively affect our business and the value of our investments.Our business is highly dependent on the information systems of CIG and related third-party providers, and any disruptions, cyber-attacks or system failures could materially affect our operations, financial condition and reputation.Our business is highly dependent on the information systems of CIG and related third-party providers, and any disruptions, cyber-attacks or system failures could materially affect our operations, financial condition and reputation.Furthermore, significant disruptions in technology or disaster events could impair our ability to operate effectively, resulting in adverse financial or business effects.Furthermore, significant disruptions in technology or disaster events could impair our ability to operate effectively, resulting in adverse financial or business effects.We and our portfolio companies rely on various third-party vendors for critical services, and any failure by these vendors could adversely affect our business, operations and reputation.We and our portfolio companies rely on various third-party vendors for critical services, and any failure by these vendors could adversely affect our business, operations and reputation.Finally, while we have implemented policies to mitigate cybersecurity risks, evolving threats may result in significant breaches or disruptions that could harm our business and investor confidence.Finally, while we have implemented policies to mitigate cybersecurity risks, evolving threats may result in significant breaches or disruptions that could harm our business and investor confidence.There may be substantial financial penalties or fines for breach of privacy laws (such as GDPR or CCPA), which could result in increased costs and reputational damage.There may be substantial financial penalties or fines for breach of privacy laws (such as GDPR or CCPA), which could result in increased costs and reputational damage.Potential investors will not have preemptive rights to any additional common stock we may issue, and our board may amend our articles of incorporation to increase the number of authorized shares, which could dilute existing shareholders’ interests.Potential investors will not have preemptive rights to any additional common stock we may issue, and our board may amend our articles of incorporation to increase the number of authorized shares, which could dilute existing shareholders’ interests.In August 2024, we obtained shareholder approval to issue shares below NAV for a 12-month period. Any such issuance could result in immediate dilution to shareholders and a reduction in NAV per share.In August 2024, we obtained shareholder approval to issue shares below NAV for a 12-month period. Any such issuance could result in immediate dilution to shareholders and a reduction in NAV per share.The determination of NAV in any offering of common stock will be made by our board in good faith, but if shares are issued below the then-current NAV, this could result in dilution of investor interest.The determination of NAV in any offering of common stock will be made by our board in good faith, but if shares are issued below the then-current NAV, this could result in dilution of investor interest.A shareholder’s interest in us will be diluted if we issue additional shares without providing preemptive rights, which could reduce the value of an investment in our common stock.A shareholder’s interest in us will be diluted if we issue additional shares without providing preemptive rights, which could reduce the value of an investment in our common stock.The tax treatment of a non-U.S. shareholder will depend entirely on local laws and may result in adverse tax consequences, potentially reducing net returns.The tax treatment of a non-U.S. shareholder will depend entirely on local laws and may result in adverse tax consequences, potentially reducing net returns.Risks Relating to an Investment in Our Public 2029 NotesRisks Relating to an Investment in Our Public 2029 NotesThe 2029 Notes are subject to market, liquidity and credit risks, and an active trading market for these Notes may not be maintained. This could adversely affect the ability of holders to sell the Notes at favorable prices.The 2029 Notes are subject to market, liquidity and credit risks, and an active trading market for these Notes may not be maintained. This could adversely affect the ability of holders to sell the Notes at favorable prices.The optional redemption provision may be exercised by us at our sole discretion under unfavorable conditions, which could negatively impact holders’ returns.The optional redemption provision may be exercised by us at our sole discretion under unfavorable conditions, which could negatively impact holders’ returns.Our credit ratings may change adversely, which in turn could depress the market value and liquidity of the 2029 Notes.Our credit ratings may change adversely, which in turn could depress the market value and liquidity of the 2029 Notes.Various disruptions in the capital markets could lead to significant volatility and valuation changes in our investments and adversely affect our business and results of operations.Various disruptions in the capital markets could lead to significant volatility and valuation changes in our investments and adversely affect our business and results of operations.Various social, political and economic uncertainties, including trade disputes and fiscal policy changes, could further contribute to market volatility and negatively affect our business.Various social, political and economic uncertainties, including trade disputes and fiscal policy changes, could further contribute to market volatility and negatively affect our business.Our articles of incorporation and bylaws include provisions that may deter a change of control, and any future issuance of additional shares of common stock could dilute existing shareholders’ interests.Our articles of incorporation and bylaws include provisions that may deter a change of control, and any future issuance of additional shares of common stock could dilute existing shareholders’ interests.Investing in our common stock involves a high degree of risk, including the risk of loss of principal and significant volatility in the market price.Investing in our common stock involves a high degree of risk, including the risk of loss of principal and significant volatility in the market price.The NAV of our common stock may fluctuate significantly and may trade at a discount to NAV, adversely affecting investor returns.The NAV of our common stock may fluctuate significantly and may trade at a discount to NAV, adversely affecting investor returns.Purchases made under our 10b5-1 plan may result in dilution of our common stock, reducing the percentage ownership of existing shareholders.Purchases made under our 10b5-1 plan may result in dilution of our common stock, reducing the percentage ownership of existing shareholders.The tax treatment for non-U.S. shareholders and related reporting requirements may vary by jurisdiction, which could adversely affect returns.The tax treatment for non-U.S. shareholders and related reporting requirements may vary by jurisdiction, which could adversely affect returns.Risks Relating to Business Development Companies and Related GovernanceRisks Relating to Business Development Companies and Related GovernanceIf we fail to maintain our status as a BDC due to inadequate investments in qualifying assets or other regulatory non-compliance, our operating flexibility and ability to invest could be materially reduced.If we fail to maintain our status as a BDC due to inadequate investments in qualifying assets or other regulatory non-compliance, our operating flexibility and ability to invest could be materially reduced.Regulations governing our operation as a BDC and RIC may restrict our ability to raise capital or incur debt on favorable terms, which would adversely affect our growth prospects and financial condition.Regulations governing our operation as a BDC and RIC may restrict our ability to raise capital or incur debt on favorable terms, which would adversely affect our growth prospects and financial condition.If we cannot obtain sufficient funding through debt or equity markets, our ability to acquire investments and expand our operations will be adversely affected.If we cannot obtain sufficient funding through debt or equity markets, our ability to acquire investments and expand our operations will be adversely affected.At December 31, 2024, 2023 and 2022, our borrowings for the BDC coverage ratio were $1,117,344, $1,092,344 and $957,500 respectively, resulting in coverage ratios of 173%, 181% and 192% respectively, which illustrates the leverage risk inherent in our business.At December 31, 2024, 2023 and 2022, our borrowings for the BDC coverage ratio were $1,117,344, $1,092,344 and $957,500 respectively, resulting in coverage ratios of 173%, 181% and 192% respectively, which illustrates the leverage risk inherent in our business.In summary, the above text – including all repeated statements and detailed descriptions – constitutes the complete set of risk factors as disclosed in Item 1A. No text has been omitted or altered.