1 unchanged sentence
Our primary exposure to market risk is the indirect impact that movements in the fair value of investments in products has on our management fees.
−Removed: In our Direct Lending products, our management fees are generally based on the fair value of the gross assets held by such products, and therefore changes in the fair value of those assets impacts the management fees we earn in any given period.
+Added: In our Credit products, our management fees are generally based on the fair value of the gross assets held by such products, and therefore changes in the fair value of those assets impacts the management fees we earn in any given period.
These management fees will be increased (or reduced) in direct proportion to the effect of changes in the market value of our investments in the related funds.
The proportion of our management fees that are based on fair value is dependent on the number and types of investment funds in existence and the current stage of each fund’s life cycle.
−Removed: Management fees from our GP Capital Solutions and Real Estate products, however, are generally based on capital commitments or investment cost, and therefore management fees are not materially impacted by changes in fair values of the underlying investments held by those products.
+Added: Management fees from our GP Strategic Capital and Real Estate products, however, are generally based on capital commitments or investment cost, and therefore management fees are not materially impacted by changes in fair values of the underlying investments held by those products.
To the extent that management fees are calculated based on investment cost of the product’s investments, the amount of fees that we may charge will increase or decrease from the effect of changes in the cost basis of the product’s investments, including potential impairment losses.
1 unchanged sentence
Our Notes bear interest at fixed rates.
−Removed: Our Revolving Credit Facility bears interest at a variable rate based on SOFR (or an alternative base rate at our option).
−Removed: As of the date of this report, we have no borrowings outstanding under our Revolving Credit Facility, and therefore changes in interest rates would not have a material impact on interest expense.
+Added: Borrowings under our Revolving Credit Facility bear interest at a variable rate based on SOFR (or an alternative base rate at our option).
+Added: An increase or decrease in interest rates by 100 basis points is not expected to have a material impact on our interest expense.
We are also subject to interest rate risk through the investments we hold in our products.
6 unchanged sentences
We generally endeavor to minimize our risk of exposure by limiting to reputable financial institutions the counterparties with which we enter into financial transactions.
−Removed: As of December 31, 2022 and December 31, 2021, we had cash balances with financial institutions in excess of Federal Deposit Insurance Corporation insured limits.
+Added: As of December 31, 2023 and December 31, 2022, we held the majority of our cash balances with a single highly rated financial institution and such balances are in excess of Federal Deposit Insurance Corporation insured limits.
We seek to mitigate this exposure by monitoring the credit standing of these financial institutions.
+Added: See “Item 1A.
+Added: Risk Factors — Risks Related to Macroeconomic Factors .”
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.