3 unchanged sentences
Our predominant exposure to market risk is related to our role as general partner or investment manager for our specialized funds and customized separate accounts and the sensitivities to movements in the fair value of their investments, which may adversely affect our equity in income of investees.
−Removed: management fees are generally based on commitments or net invested capital, our management fee and advisory fee revenue is not significantly impacted by changes in investment values.
+Added: During the year ended March 31, 2026, our market‑risk sensitivity increased compared to the prior year primarily due to a greater proportion of fee‑earning arrangements that use NAV as the fee base.
+Added: While the majority of our management fees are based on commitments or net invested capital, a portion of our management fees are based NAV and, accordingly, are sensitive to changes in the fair value of the underlying investments.
+Added: In addition, a portion of our incentive fees are performance fees that are subject to a high-water mark, and, as a result, declines in NAV may increase the amount of future appreciation required before such incentive fees are earned.
Fair value of the financial assets and liabilities of our specialized funds and customized separate accounts may fluctuate in response to changes in the value of securities, foreign currency exchange rates, commodity prices and interest rates.
2 unchanged sentences
Our general partner investments include thousands of unique underlying portfolio investments with no significant concentration in any industry or country outside of the United States.
−Removed: • Management fees from our specialized funds and customized separate accounts are not significantly affected by changes in fair value as the management fees are not generally based on the value of the specialized funds or customized separate accounts, but rather on the amount of capital committed or invested in the specialized funds or customized separate accounts, as applicable.
−Removed: • Incentive fees from our specialized funds with the exception of certain evergreen funds and customized separate accounts are not materially affected by changes in the fair value of unrealized investments because they are based on realized gains and subject to achievement of performance criteria rather than on the fair value of the specialized fund’s or customized separate account’s assets prior to realization.
−Removed: Minor decreases in underlying fair value would not affect the amount of deferred incentive fee revenue subject to clawback.
+Added: • Management fees from our specialized funds and customized separate accounts are derived from applying a contractual fee rate to a specified fee base, which is generally capital committed or net invested capital.
+Added: For those arrangements in which the applicable fee base is NAV, changes in the fair value of the underlying investments will impact management fees.
+Added: As of March 31, 2026, we estimate that a hypothetical 10% decrease in the NAV-based fee base (holding all other variables constant) would decrease management fee revenue by approximately $23.8 million over the next 12 months.
+Added: • Incentive fees from our specialized funds and certain customized separate accounts are inherently variable and are generally dependent on realized investment performance and achievement of performance criteria.
+Added: In addition, for certain evergreen funds and customized separate accounts, performance fees are based on the aggregate amount of unrealized or realized gains and are subject to achievement of defined minimum returns and/or a high-water mark.
+Added: A high-water mark feature generally requires that NAV exceed the highest period-end NAV (as adjusted pursuant to the applicable governing documents) before performance fees are earned.
+Added: Accordingly, declines in NAV may delay or reduce future incentive fees by increasing the amount of subsequent NAV appreciation required to exceed the applicable high-water mark.
Exchange Rate Risk
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Interest Rate Risk
−Removed: As of March 31, 2025, we had $193.1 million in borrowings outstanding under our Loan Agreements.
−Removed: The annual interest rate on the Term Loan Agreement, which is at the prime rate minus 1.25%, subject to a floor of 3.00%, was 6.25% as of March 31, 2025.
−Removed: The annual interest rate on the Revolving Loan Agreement, which is at the prime rate minus 1.50%, subject to a floor of 2.25%, was 6.00% as of March 31, 2025.
+Added: As of March 31, 2026, we had $180.6 million in borrowings outstanding under our Loan Agreements, consisting of $84.4 million outstanding under the Term Loan Agreement and $96.3 million outstanding under the 2020 Multi-Draw Term Loan Agreement.
+Added: We did not have any borrowings outstanding under the Revolving Loan Agreement or the 2022 Multi-Draw Term Loan Agreement as of March 31, 2026.
+Added: The annual interest rate on the Term Loan Agreement, which is at the prime rate minus 1.25% and subject to a floor of 3.00%, was 5.50% as of March 31, 2026.
+Added: The interest rate under the 2020 Multi-Draw Term-Loan Agreement is fixed.
+Added: Our $100.0 million aggregate principal amount of Senior Notes due October 15, 2029 have a fixed interest rate of 5.28%.
Based on the floating rate component of our Loan Agreements payable as of March 31, 2026, we estimate that a 100 basis point increase in interest rates would result in increased interest expense of approximately $0.8 million over the next 12 months.
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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.