Risk Factors Update Summary

• Risks related to recent acquisitions, particularly Sculptor, were added, impacting integration and performance. This change highlights increased acquisition risks.
• Potential challenges post-Sculptor and Computershare acquisitions: integration, management diversion, and undisclosed liabilities.
• CLOs' leveraged position increases risk of losses. Failure to meet tests may reduce cash flows.
• Transition from LIBOR to SOFR may affect financial obligations linked to LIBOR after June 30, 2023.
• Valuation methodologies for certain assets in funds were detailed, emphasizing subjectivity and potential risks. This change highlights the importance of accurate valuation.
• Significant limitations on utilizing Sculptor's tax attributes due to Section 382 ownership change.
• Expanded operations post-acquisitions pose challenges in management, costs, and complexity.
• Concerns about ESG practices and ratings were added, indicating potential investor impact and regulatory risks.
• Interest rates on CLO Investment Loans variable based on SOFR or EURIBOR, subject to a floor of zero percent.
• Increased focus on climate change risks, including transition risks and physical effects, was emphasized, affecting operations and investments.
• Change in interest rates: Federal Reserve raised rates through July 2023, with three further increases expected in 2024.
• Disclosure on conflicts of interest and potential reputational damage was expanded, impacting investor perception and regulatory scrutiny.
• Risks associated with mixed-use commercial properties may impact operating results and development projects.
• Risks related to asset management competition and fee pressures were highlighted, affecting revenues and growth potential.
• Regulatory actions against Servicing Partners or subsidiaries may increase financing costs or operating expenses.
• Potential impacts of regulatory reforms and market uncertainties on investment strategies were mentioned, affecting profitability and investment opportunities.
• Risk retention regulations may require the retention of a portion of securities issued in CLOs.