Risk Factors 1 (continued) CONFIDENTIAL FOR DISCUSSION PURPOSES ONLY CERTAIN RISKS OF INFRASTRUCTURE DEBT Below is a summary of certain potential risk factors applicable to Preferred Shares holders investing through the Issuer in infrastructure debt generally. The Issuer's portfolio will consist primarily of senior secured loans. In the case of any particular asset, to the extent that negative circumstances occur affecting the obligor on such asset, losses incurred by the obligor will be borne in the first instance by holders of the equity interests in such obligor prior to losses being borne by the senor lenders and other creditors of such obligor, such as the Issuer. Risks of Infrastructure Investments Generally Investing in debt associated with infrastructure assets involves a variety of risks, not all of which can be foreseen or quantified. arid which include. among others, the burdens of ownership of infrastructure assets; local. national and international economic conditions: the supply and demand for services from and access to infrastructure; the financial condition of users and suppliers of infrastructure assets; risks related to construction, regulatory requirements, labor actions, health and safety matters, government contracts, operating and technical needs, capital expenditures, demand and user conflicts, bypass attempts, strategic assets. changes in interest rates and the availability of funds which may render the purchase, sale or refinancing of infrastructure assets difficult or impracticable: changes in environmental laws and regulations. investments in other funds. troubled infrastructure assets and planning laws and other governmental rules; changes in energy prices: negative developments in the economy that may depress travel activity; force majeure acts, terrorist events. under-insured or uninsurable losses; competition from newer or refurbished infrastructure assets; and other factors which are beyond the reasonable control of the