Risk Factors 1 (continued) CONFIDENTIAL FOR DISCUSSION PURPOSES °NV! Risk Factors Cayman Islands Anti-Money Laundering Legislation The Issuer's administrator is, and the Issuer may be. subject to the Cayman Islands Money Laundering Regulations (2010 Revision). RISKS RELATING TO THE COLLATERAL OBLIGATIONS Below Investment-Grade Assets The assets acquired by the Issuer will consist primarily of non-investment grade loans or interests in non-investment grade loans that are subject to. credit, interest rate. illiquidity and other risks. Risks of Default and Recovery Levels on the Issuers Assets While infrastructure debt historically experiences low default rates as compared to other industry sectors, a non-investment grade debt obligation or an interest in a non-investment grade debt obligation is generally considered speculative in nature and for a variety of reasons may become a defaulted obligation. Limited Information abotk the Issuer's Assets Neither the Issuer nor the Portfolio Advisor will be required to provide the holders of the Preferred Shares with financial or other information that it receives in connection with the assets owned by the Issuer unless required under the transaction agreements. Lender Liability Considerations There can be no assurance that lender liability claims will not arise against the Issuer or that the Issuer will not be subject to liability upon the occurrence of such a claim. Voting Rights on the Issuers Assets The Issuer will have limited consent and control rights which may not be effective in view of the typically low proportion of such obligations held by the Issuer. Asset Credit Ratings Risks The Issuer will be using ratings assigned by the rating agencies to obligors on individual assets. A credit rating is not a recommendation to buy, sell or hold assets and may be subject to revision or withdrawal at any time by the assigning rating agency. Loan Prepayments Loans are generally prepayable in whole or in part