CREDIT STRATEGY TERMS

CREDIT STRATEGY TERMS
All-weather strategy: As used in this presentation, refers to the Fund’s approach of constructing a diversified portfolio across asset classes, and liquid credit investments, sectors and issuers, and actively adjusting allocations (including a liquid credit sleeve) to seek attractive risk-adjusted returns and current income in a range of market and economic environments. An “all-weather” strategy does not imply that the Fund will be profitable or avoid losses in all market conditions; the value of the Fund’s investments will fluctuate and investors may lose money.

Liquid credit sleeve: Refers to a designated portion of the Fund’s portfolio invested in more readily tradable credit instruments. The sleeve is intended to support the Fund’s portfolio management activities, including rebalancing, liquidity management and tactical repositioning. There is no assurance that the sleeve will achieve these objectives.

Max sector concentration: Approximate aggregate notional amount of investment opportunities reviewed by TCG-affiliated advisers since inception.

Call protection: As used in this presentation, refers to contractual provisions (such as no-call periods or makes-whole payments) that limit or discontinue a borrower from repaying or refinancing a loan before a specified date.

Prepayment fees: As used in this presentation, refers to contractually agreed fees or premiums a borrower pays if it repays a loan before scheduled maturity or outside permitted windows, generally intended to compensate the lender for early repayment.

Equity kickers: As used in this presentation, refers to contractual rights obtained in connection with a loan that give the lender an equity or equity-like interest in the borrower or its affiliates (for example, warrants or profit interests). There is no assurance that any equity kicker will have value.

PLATFORM METRICS & OPERATIONAL TERMS
Relevant transactions executed: Approximate aggregate notional amount of credit transactions that TCG principals have led or played a senior decision-making role in across current and predecessor platforms.

TCG Principals: Senior partners and other key professionals of Tannenbaum Capital Group LLC and its affiliates.

Sponsor commitment: Aggregate capital committed to TCGSX by TCG Principals and affiliated entities.

Investments sourced: Approximate aggregate notional amount of investment opportunities reviewed by TCG-affiliated advisers since inception.

Investments closed: Number of distinct investments completed by TCG-affiliated advisers since inception.

AUM: Where “assets under management” or “AUM” is used in this presentation, it refers to (i) the amount of assets managed by investment advisers that are affiliated with TCG, and (ii) the amount of assets available under a committed credit line, subject to lender participation and available borrowing base collateral, to a fund externally managed by the investment advisers that are affiliated with TCG.

Asset-Based Corporate Lending: As used in this presentation refers to Asset-Based Credit, which is defined in the Prospectus as:

Debt or structured equity collateralized by assets and underwritten to asset value, rather than cash flow. Collateral may include hard assets and/or financial assets such as inventory and receivables.

Direct Lending: Loans directly to middle-market companies, covered by the business’ enterprise value, underwritten on a cash flow basis, sometimes with equity components.

Commercial Real Estate Lending: As used in this presentation refers to Real Estate Debt, which is defined in the Prospectus as:

Loans directly or indirectly backed by real estate.

Niche Assets: Refers to investments secured by hard assets or intellectual property (“IP”), including, but not limited to:

Royalties Financing: Investments in entities holding intellectual property rights with credit-like cash flow characteristics or debt investments to companies collateralized by intellectual property rights.

Participation in Leasing Obligations (Aircraft, Equipment, Other): Loans directly backed by leasing obligations for commoditized equipment or mission critical assets to a counterparty over a defined term.

Liquid Credit: Refers to investment that we expect to be actively traded (in the case of broadly syndicated loans, with a typical settlement period of one month). This segment is designed to maximize income, liquidity, and risk-adjusted returns, allowing the Fund to pivot to attractive market segments as conditions change as well as meet the Fund’s redemption obligations. This may include, such opportunities as listed below:

Bonds and Loans: Focus on high yield corporate bonds and leveraged loans. High yield bonds, also known as “junk bonds,” are issued by companies with non-investment grade ratings and therefore offer higher yields to compensate investors for the increased credit risk.

Hybrid Instruments: Investments in preferred stocks and convertible bonds, offering a blend of fixed income and equity characteristics for diversification and income.

Structured Credit (CLO mezzanine debt): Typically, highly levered investments in lower risk credit collateral.

Diversified private credit: A multi-strategy portfolio that may include allocations to direct lending, asset-based credit, and other private credit investment verticals.

Private credit: Non-traded loans and other credit investments originated or purchased in private markets, including direct lending, asset-based credit and other negotiated financings.

Corporate credit: Credit investments in corporate issuers across public and private markets, including loans and bonds.

IMPORTANT INFORMATION:
The Fund is a non-diversified, closed-end management investment company designed primarily as a long-term investment. An investment in the Fund is not intended to be a complete investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its investment objectives.

Investing in the Fund involves risks, including the risk that a Shareholder may receive little or no return on their investment or that a Shareholder may lose part or all of their investment. Below is a summary of the principal risks of investing in the Fund. Shareholders should consider carefully the following principal risks before investing in the Fund:
All investments expose the Fund to potential loss of capital from issuer-specific issues and broader economic, market, or political events. Past performance and risk-management techniques may not predict future results.
Private credit loans, including those that are illiquid or highly leveraged, can be hard to value or exit and may require the Fund to liquidate positions at less than favorable prices to avoid concentrating the Fund’s exposure in specific industries, increasing loss potential. • Shifts in interest rates, inflation, geopolitical events, pandemics, and policy changes can cause volatility, impair portfolio values, and disrupt liquidity, adversely affecting the Fund’s performance and can increase borrowing costs, potentially reducing the Fund’s distributable income. events. Past performance and risk-management techniques may not predict future results.
Private credit loans, including those that are illiquid or highly leveraged, can be hard to value or exit and may require the Fund to liquidate positions at less than favorable prices to avoid concentrating the Fund’s exposure in specific industries, increasing loss potential.
Shifts in interest rates, inflation, geopolitical events, pandemics, and policy changes can cause volatility, impair portfolio values, and disrupt liquidity, adversely affecting the Fund’s performance and can increase borrowing costs, potentially reducing the Fund’s distributable income.
Issuers or borrowers may be unable to make scheduled payments, and collateral values may prove insufficient, leading to losses for the Fund.
Widening credit spreads quickly reduce the market value and liquidity of below-investment-grade and unrated securities, negatively impacting the Fund.
Loan investments, whether primary, secondary, or synthetic, are subject to credit, liquidity, and structural risks that can diminish this potential returns.
Although secured by collateral, senior loans may suffer from deteriorating collateral values, lien challenges, or unexpected prepayments, limiting income.
Subordinated positions absorb losses before senior debt, tend to be more volatile and illiquid, and carry a higher risk of principal loss.
Typically unsecured and junior in priority, mezzanine investments face heightened default and illiquidity risks, with limited protections to protect lenders.
To the extent the Fund originates loans, the Fund may be subject to greater levels of credit risk, call risk, settlement risk, risk of subordination to other creditors, insufficient or lack of protection under federal securities laws and liquidity risk.
Participation and assignment structures in loans may limit the Fund’s creditor rights, create settlement delays, and expose the Fund to additional counterparty and operational risks.
Distressed or defaulted issuers, including those that do not perform under their loan agreements, present elevated credit, valuation, and liquidity challenges that may lead to total loss of capital.
Asset-backed securities are vulnerable to prepayments, credit events, interest-rate shifts, and structural complexities that can impair cash flows and valuations.
Collateralized loan obligations entail underlying loan performance, tranche subordination, regulatory, and market volatility risks that can materially affect returns.
Packaging loans into securitizations may create structural, legal, and market risks, and the Fund bears residual exposure until securities are sold.
Mortgage-backed securities face credit, prepayment, and valuation risks tied to property market conditions, loan terms, and borrower behavior.
Receivables-backed financings depend on originator quality, fraud controls, and obligor creditworthiness, with uncertain collateral recovery.
Revenue streams from royalties, including commodities, entertainment, or healthcare royalties, can fluctuate with market demand, regulation, and third-party performance.
Lesser defaults in equipment leases can trigger costly repossessions and disrupt cash flow, reducing investment returns.
Aircraft-backed investments are subject to cyclical demand, regulatory changes, and technical or maintenance issues that can depress values.
Equity and equity-linked positions can be highly volatile, may lose value, and may offset losses in the debt portfolio.
Preferred shares rank below debt, may be callable, and can suspend dividends, leading to price declines and income interruption.
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The Fund’s Shares are not exchange-traded and lack daily liquidity, so investors may not readily exit their positions except through periodic repurchases.
To meet repurchase obligations, the Fund must hold liquid assets, which may limit investment flexibility and performance, especially in stressed markets.
The Fund’s quarterly repurchase programs can force the Fund to hold extra liquidity or sell assets quickly, potentially diluting performance and increasing expenses.
Leverage magnifies sensitivity to economic downturns and rising rates, heightening default risk and potential losses. The Fund’s distribution amounts and frequency depend on earnings and Board discretion; they may fluctuate or decline, and returns of capital may occur.
While the principals of the Adviser have the collective expertise and experience in advising investment funds with similar portfolio holdings and investment strategies, these principals do not have a tract record for implementing the Fund’s investment strategy in a closed-end fund registered under the 1940 Act.
The Fund’s success depends on a small group of investment professionals whose departure could adversely affect performance.
Numerous larger, better-capitalized investors vie for the same opportunities, potentially limiting deal flow and driving up prices.
Initial delays in the deployment of proceeds in investments in accordance with the Fund’s investment objectives, strategies and policies may prevent the Fund from achieving desired investment results.
Affiliations with other funds may lead to competing demands for investments and allocation decisions that disadvantage the Fund.
Failures in systems, processes, or third-party services (e.g., custody, administration) can cause financial loss and reputational harm.
Liquid Credit Risk: Investments in liquid credit instruments are subject to a variety of risks that could cause the Fund to lose money or experience diminished returns, notwithstanding the relative marketability of those instruments.
Royalty Risk: The Fund may invest in royalties, either directly purchasing the asset generating royalties or providing loans secured by royalties.
For a more complete discussion of the principal risks of investing in the Fund, see “Principal Risks of the Fund.”