Risk Factors Update Summary

• The SEC adopted a package of new rules impacting private fund advisers, including new restrictions and enhanced transparency requirements. This change could significantly affect compliance costs and operational burdens.
• Change from "requires" to "could" in modifying business strategy may impact flexibility and operations.
• Added unanticipated issues in integrating systems. This may lead to operational disruptions.
• The SEC proposed new rules imposing substantial obligations on registered investment advisers, potentially limiting the use of service providers and increasing regulatory scrutiny.
• Change from "restricts" to "restrict" may affect pursuit of opportunities, potentially impacting financial results.
• Inflation has accelerated globally, impacting labor, energy, and raw material costs, affecting consumer spending.
• Proposed legislation may impact alternative asset management firms. This could lead to financial constraints.
• Interest rates have risen, with further increases expected, impacting cash flows, earnings, and asset valuations.
• Added risks in international operations. This includes currency fluctuations and political instability.
• Change from "will likely" to "may" in compliance with regulations may alter financial strain.
• Potential conflicts may arise in investment allocation decisions. This could impact investor confidence.
• The SEC proposed amendments to accelerate filing deadlines for beneficial ownership and expand short-sale reporting requirements, necessitating additional resources for compliance.
• Conflicts in determining costs incurred in fund operations. This may lead to increased expenses.
• Excise tax implications on redemptions of Class A Common Stock after 2022. This may impact financials.
• The company faces increased competition, including from traditional asset managers and private equity platforms.
• The SEC proposed rules requiring registered investment advisers to conduct due diligence on service providers, potentially limiting service provider options and increasing costs.
• The SEC proposed ESG disclosure rules for investment advisers, requiring extensive reporting on ESG factors, potentially impacting investment strategies and disclosure practices.
• Increased exposure to liability under foreign regulatory regimes. This could result in financial risks.
• The SEC proposed a transformation of the Custody Rule into the Safeguarding Rule, broadening the rule's scope to cover all client assets, including digital assets and real estate interests.
• The SEC announced charges against broker-dealers and investment advisers for failures in maintaining electronic communications, resulting in penalties and compliance improvements.