1347652--2/27/2008--TORTOISE_CAPITAL_RESOURCES

related topics

{investment, property, distribution}

{condition, economic, financial}

{loan, real, estate}

{tax, income, asset}

{control, financial, internal}

{gas, price, oil}

{acquisition, growth, future}

{cost, contract, operation}

{operation, natural, condition}

{competitive, industry, competition}

{personnel, key, retain}

{stock, price, operating}

{regulation, change, law}

{operation, international, foreign}

Risks Related to Our Operations We have a limited operating history. Our Adviser will serve as investment adviser to other funds, which may create conflicts of interest not in the best interest of us or our stockholders. We are dependent upon our Adviser s key personnel for our future success. The incentive fee payable to our Adviser may create conflicting incentives. Our Adviser and its management have limited experience operating under the constraints imposed on us as a BDC. Because we expect to distribute substantially all of our income to our stockholders, we will continue to need additional capital to make new investments. If additional funds are unavailable or not available on favorable terms, our ability to make new investments will be impaired. As a BDC, we are subject to limitations on our ability to engage in certain transactions with affiliates. If an investment that was initially believed to be a qualifying asset is later deemed not to have been a qualifying asset at the time of investment, we could lose our status as a BDC or be precluded from investing according to our current business plan. We may choose to invest a portion of our portfolio in investments that may be considered highly speculative and that could negatively impact our ability to pay distributions and cause you to lose part of your investment. Our debt increases the risk of investing in us. We operate in a highly competitive market for investment opportunities. Our quarterly results may fluctuate. Our portfolio may be concentrated in a limited number of portfolio companies. Our anticipated investments in privately-held companies present certain challenges, including the lack of available information about these companies and a greater inability to liquidate our investments in an advantageous manner. Most of our portfolio investments are and will continue to be recorded at fair value as determined in good faith by our Board of Directors. As a result, there is and will continue to be uncertainty as to the value of our portfolio investments. Our equity investments may decline in value. An investment in MLPs will pose risks unique from other equity investments. Unrealized decreases in the value of debt investments in our portfolio may impact the value of our common shares and may reduce our income for distribution. When we are a minority equity or a debt investor in a portfolio company, we may not be in a position to control that portfolio company. Our portfolio companies can incur debt that ranks senior to our equity investments in such companies. If our investments do not meet our performance expectations, you may not receive distributions. The lack of liquidity in our investments may adversely affect our business, and if we need to sell any of our investments, we may not be able to do so at a favorable price. As a result, we may suffer losses. We will be exposed to risks associated with changes in interest rates. We may not have the funds to make additional investments in our portfolio companies. Changes in laws or regulations or in the interpretations of laws or regulations could significantly affect our operations and cost of doing business. Our internal controls over financial reporting may not be adequate, and our independent registered public accounting firm may not be able to certify as to their adequacy, which could have a significant and adverse effect on our business and reputation. Risks Related to an Investment in the U.S. Energy Infrastructure Sector Our portfolio is and will continue to be concentrated in the energy infrastructure sector, which will subject us to more risks than if we were broadly diversified. The portfolio companies in which we invest are subject to variations in the supply and demand of various energy commodities. Many companies in the energy infrastructure sector are subject to the risk that they, or their customers, will be unable to replace depleted reserves of energy commodities. Our portfolio companies are and will be subject to extensive regulation because of their participation in the energy infrastructure sector. Our portfolio companies are and will be subject to the risk of fluctuations in commodity prices. Our portfolio companies are and will be subject to the risk of extreme weather patterns. Acts of terrorism may adversely affect us.

Full 10-K form ▸

1347652--2/27/2008--TORTOISE_CAPITAL_RESOURCES_CORP