RIN II •094 Alpha Group Capital LLC RISKS RELATING TO THE COLLATERAL OBLIGATIONS Below Investment-Grade Assets The Collateral Obligations 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. It is anticipated that the Assets generally will be subject to greater risks than investment grade obligations. These risks could be exacerbated if the Portfolio is concentrated in certain sectors of infrastructure debt. See also "Certain Risks of Infrastructure Debt—Illiquidity in Infrastructure Finance' below. Risks of Default and Recovery Levels on the Collateral Obligations 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. A Defaulted Obligation may become subject to substantial workout negotiations or restructuring, which may result in reductions in the interest rate, principal write downs or changes in the terms, conditions and covenants with respect to such Defaulted Obligation. In addition, negotiations in a workout or restructuring may be protracted and may result in uncertainty as to the timing and amount of recovery on a Defaulted Obligation. The actual recovery experienced on any Defaulted Obligation will likely differ from, and could be lower than, the recovery rate used by the Issuer when making its investment in the related Collateral Obligation. Limited Information about Collateral Obligations Neither the Issuer nor the Portfolio Advisor are required to provide the Preferred Shareholders with financial or other information that it receives in connection with the Collateral Obligations unless required under the Transaction Agreements. The Preferred