AB 2020 Form 10-K

Item 1A. Risk Factors An investment in the Fund’s securities involves certain risks relating to its structure and investment objective. The risks set forth below are not the only risks the Fund faces, and the Fund may face other risks that it has not yet identified, which it does not currently deem material or which are not yet predictable. If any of the following risks occur, the Fund’s business, financial condition and results of operations could be materially adversely affected. In such case, the Fund’s net asset value and the price of its common stock could decline, and you may lose all or part of your investment. Risk Factor Summary The following is a summary of the principal risk factors associated with an investment in the Fund: Risks Related to the Fund’s Business and Structure • The Fund has limited operating history, and the Adviser has no prior experience managing a BDC or a RIC. • There will be uncertainty as to the value of the Fund’s portfolio investments. • The Fund’s financial condition will depend on its ability to effectively manage and deploy capital. • The Fund may face increasing competition for investment opportunities. • The Adviser has incentives to favor its other accounts and clients over the Fund, and the Fund’s success depends on the ability of the Adviser to attract and retain qualified personnel in a competitive environment. • The inability of the Adviser to maintain or develop referral relationships could adversely affect the Fund. • Misconduct by employees of the Adviser or by third-party service providers could cause significant losses. • There are significant potential conflicts of interest which could impact the Fund’s investment returns. • The recommendations given to the Fund by the Adviser may differ from those rendered to its other clients. • Access to confidential information may restrict the Fund’s ability to act with respect to some investments. • The Fund’s ability to enter into transactions with its affiliates is restricted. • The compensation the Fund will pay to the Adviser was not determined on an arm’s-length basis. • Even if the value of your investment declines, certain fees will still be payable to the Adviser by the Fund. • The Fund’s incentive fee may induce the Adviser to pursue speculative investments and to use leverage. • The Small Business Credit Availability Act allows the Fund to incur additional leverage. • Increased leverage may magnify the Fund’s exposure to risks associated with changes in interest rates. • An increase in interest rates will likely have the effect of making it easier for the Adviser to receive fees, without necessarily resulting in an increase in the Fund’s net earnings. • The Adviser and the Administrator have the right to resign on 60 days’ notice. • The Adviser’s liability is limited under the Advisory Agreement and the Fund has agreed to indemnify the Adviser against certain liabilities. • The Adviser may not be able to achieve similar returns as those previously achieved by Mr. Humphries. • Investors may default on Capital Calls. • Any failure on the Fund’s part to maintain its status as a BDC would reduce its operating flexibility. • Regulations governing the Fund’s operation as a BDC affect its ability to raise additional capital. • The Fund may borrow money, which would magnify the potential for gain or loss on amounts invested. • To the extent that the Fund borrows money, the risk of investing in the Fund may increase. • The Fund is subject to risks associated with the current interest rate environment. • Non-controlling investments may involve risks specific to third-party management of those investments. • The Fund may experience fluctuations in its quarterly and annual results. • The Fund is a non-diversified investment company within the meaning of the 1940 Act. • The Board is authorized to reclassify any unissued Shares into one or more classes of preferred stock. • The Board may change the Fund’s investment objective without prior notice or stockholder approval.