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EFTA01386878

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RIN II • 094 Alpha Group Capital LLC Preferred Shares—Purchase Restrictions". In the event that a Preferred Share Purchaser fails to fund a Contribution, the Issuer will have the right to exercise certain remedies with respect to such Preferred Shareholder. See "—Risks Relating to the Issuer—Uncertainty of Asset Accumulation." U.S. Risk Retention Regulations Section 941 of the Dodd-Frank Act amended the Exchange Act to require the "securitizer" of asset-backed securities to retain at least 5% of the credit risk to the assets collateralizing the asset-backed securities. The U.S. Risk Retention Regulations, effective December 24, 2016 with respect to asset-backed securities collateralized by assets other than residential mortgages, require that the "sponsor" (or a majority-owned affiliate) of asset-backed securities (and the U.S. Risk Retention Regulations and related commentary clarify that the collateral manager of a collateralized loan obligation transaction (such as the Portfolio Advisor) is the "sponsor" of a credit securitization transaction for the purposes of the U.S. Risk Retention Regulations) retain the required 5% of credit risk. It is possible that the rule may reduce the number of collateral managers active in the market, which may result in fewer new issue credit securitization transactions and reduce the liquidity provided by credit securitization transactions to the leveraged loan market and high-yield bond market generally. A contraction or reduced liquidity in the loan or bond market could reduce opportunities for the Portfolio Advisor to sell Collateral Obligations or to invest in Collateral Obligations when it believes it is in the interest of the Issuer to do so, which in turn could negatively impact the return on the Assets. My reduction in the volume and liquidity provided by credit securitization transactions in the leveraged loan market or high-yield bond market could also reduce opportunities to redeem or refinance the Refi

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