Company: FCRX
Filing Date: 2025-02-03
Form Type: N-2/A
Source: 0001193125-25-018583
Chunk: 8

Company: Crescent Capital BDC, Inc.
Filing Date: 2025-02-03
Form: N-2/A
Chunk 8
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 so. We have formed a wholly owned subsidiary that is structured as a tax blocker, to hold equity or equity-like investments in a portfolio company organized as a limited liability company. These corporate subsidiaries are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of portfolio companies. Such Subsidiaries will not be registered under the 1940 Act; however, the Company will wholly own and control any Subsidiaries. The Board has oversight responsibility for the investment activities of the Company, including its investment in any Subsidiary, and the Company’s role as sole direct or indirect shareholder of any Subsidiary. We comply with the provisions of the 1940 Act governing investment policies on an aggregate basis with its Subsidiaries and the provisions governing capital structure and leverage on an aggregate basis with any Subsidiaries. Our Advisor acts as investment adviser to our Subsidiaries and complies with the provisions of the 1940 Act on investment advisory contracts. Each of our Subsidiaries also complies with the 1940 Act provisions related to affiliated transactions and custody, and our Custodian is the custodian for each of our Subsidiaries. The Company does not intend to create or acquire primary control of any company that primarily engages in investment activities in securities or other assets, other than entities wholly-owned by the Company. We may borrow money from time to time within the levels permitted by the 1940 Act (up to 150% of asset coverage requirement). In determining whether to borrow money, we analyze the maturity, covenant package and rate structure of the proposed borrowings as well as the risks of such borrowings compared to our investment outlook. The use of borrowed funds or the proceeds of preferred stock offerings to make investments would have its own specific set of benefits and risks, and all of the costs of borrowing funds or issuing preferred stock would be borne by holders of our common stock. See “Part I. Item 1A. Risk Factors—Risks Relating to Our Business and Structure-Ourstrategy involves a high degree of leverage. We intend to continue to finance our investments with borrowed money, which will magnify the potential for gain or loss on amounts invested and increases the risk of investing in us. The risks of investment in a highly leveraged fund include volatility and possible distribution restrictions.”in our most recent Annual Report on Form 10-K,which is incorporated by reference herein. See “Part I. Item 1. Business”in our most recent