Item 1A. Risk Factors
Item
1A. Risk Factors
Investing
in our securities involves a number of significant risks. In addition to the other information contained in this report, you should carefully
consider the factors discussed in our annual report on Form 10-K for the fiscal year ended December 31, 2022, filed with the SEC on March
16, 2023, which could materially affect our business, financial condition and/or operating results. Although the risks described in our
annual report on Form 10-K for the fiscal year ended December 31, 2022 represent the principal risks associated with an investment in
us, they are not the only risks we face. Additional risks and uncertainties not currently known to us, or that we currently deem to be
immaterial, might materially and adversely affect our business, financial condition and/or operating results. Other than as stated below, there have been no material
changes to the risk factors discussed in “Item 1A. Risk Factors” of Part I of our annual report on Form 10-K for the fiscal
year ended December 31, 2022.
We may be subject
to risks related to bank impairments or failures either directly or through our portfolio companies, which, in turn, could indirectly
impact our performance and results of operations.
In March 2023, the U.S.
Federal Deposit Insurance Corporation (“FDIC”) took control of Silicon Valley Bank and Signature Bank, and in May 2023, the
FDIC took control of First Republic Bank due to liquidity concerns. The impairment or failure of one or more banks with whom any of our
portfolio companies transact may inhibit the ability of our portfolio companies to access depository accounts, including cash and cash
equivalents, as well as investment accounts, which, in turn, may indirectly impact our performance and results of operations. In the event
of a bank impairment or failure, affected portfolio companies may experience difficulties impacting their performance or results of operations,
which, in turn, may result in impacts to our performance. In the event of such a failure of a banking institution where one or more of
our portfolio companies holds depository accounts, access to such accounts could be restricted and FDIC protection may not be available
for balances in excess of amounts insured by the FDIC. In such instances, our affected portfolio companies would not recover such excess,
uninsured amounts, and they may not be able to cure any defaults. Additionally, unfavorable economic conditions also could increase our
funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could
prevent us from increasing our investments and harm business, financial condition, operating results and prospects. We closely monitor
activity in the banking sector as it relates to any of our borrowers and continually assess any potential indirect impact to us as a result
of the same.
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