As a BDC, we are required to have at least 70% of our total assets invested in securities of privately-held or thinly-traded U.S. companies, certain high-quality debt, and cash. We also may invest up to 30% of our assets in opportunities that are not subject to the limitations stated above.

Additionally, we intend to be treated as a regulated investment company (RIC) under the Internal Revenue Service Tax Code. As a RIC we generally will not have to pay corporate-level federal income taxes on any ordinary income or capital gains that we distribute to our stockholders as dividends. To qualify as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements. Also, we must annually distribute at least 98% of the net income earned from our investment activities to our stockholders.