<SEC-DOCUMENT>0001193125-15-078896.txt : 20150408
<SEC-HEADER>0001193125-15-078896.hdr.sgml : 20150408
<ACCEPTANCE-DATETIME>20150305164235
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-15-078896
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20150305

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CM Finance Inc
		CENTRAL INDEX KEY:			0001578348
		IRS NUMBER:				462883380
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		601 LEXINGTON AVENUE
		STREET 2:		26TH FLOOR SUITE C
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
		BUSINESS PHONE:		212-388-5813

	MAIL ADDRESS:	
		STREET 1:		601 LEXINGTON AVENUE
		STREET 2:		26TH FLOOR SUITE C
		CITY:			NEW YORK
		STATE:			NY
		ZIP:			10022
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<HTML><HEAD>
<TITLE>CORRESP</TITLE>
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">[Letterhead of Sutherland Asbill&nbsp;&amp; Brennan LLP] </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">March&nbsp;5, 2015 </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><U>VIA EDGAR </U></B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">James E. O&#146;Connor, Esq. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">U.S. Securities and Exchange
Commission </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">100 F Street, N.E. </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Washington, DC 20549 </P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">Re:</TD>
<TD ALIGN="left" VALIGN="top">CM Finance Inc </TD></TR></TABLE> <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Registration Statement on Form N-2 </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(File No. 333-201432) </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Dear
Mr.&nbsp;O&#146;Connor and Ms.&nbsp;Fettig: </P> <P STYLE="margin-top:12pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">On behalf of CM Finance Inc (the &#147;<B><I>Fund</I></B>&#148;), set forth below are the
Company&#146;s responses to the comments of the staff of the Division of Investment Management (the &#147;<B><I>Staff</I></B>&#148;) of the Securities and Exchange Commission (the &#147;<B><I>SEC</I></B>&#148;) that we received on February&nbsp;10,
2015 and March&nbsp;5, 2015 regarding the Company&#146;s registration statement on Form N-2 (File No.&nbsp;333-201432) (the &#147;<B><I>Registration Statement</I></B>&#148;) filed on January&nbsp;9, 2015. The Staff&#146;s comments are set forth
below and are followed by the Company&#146;s responses. References to the &#147;<B><I>Prospectus</I></B>&#148; contained herein are to the preliminary prospectus contained in the Fund&#146;s Pre-Effective Amendment No.&nbsp;1 to the Registration
Statement on Form N-2 filed with the SEC concurrently with this letter. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Facing Page </B></P>
<P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">1.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The footnotes to the pricing table indicate that the securities being registered may be offered in &#147;units.&#148; Please provide a legal analysis discussing why an offering of &#147;units&#148; is
consistent with the protections of the Investment Company Act based on a specific description of how and why the &#147;units&#148; are being offered. This analysis should describe how the individual securities in a &#147;unit&#148; will be valued
and whether the interests of existing common shareholders could be diluted by the issuance of the Fund&#146;s securities in &#147;units.&#148; In addition, please provide us with a representation that the Fund will not file a prospectus supplement
for a take-down of an offering of &#147;units&#148; unless the specific terms of the offering are first disclosed in a post-effective amendment or a new registration statement that has been accelerated by the Staff. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund does not intend to offer &#147;units&#148; and has revised the language on the facing page
accordingly. </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 2
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">2.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Because the disclosure in the prospectus provides only a generic description of the &#147;debt securities&#148; that the Fund may issue, please provide us with a <I>pro forma</I> copy of a supplement
that will be used in connection with offerings of &#147;debt securities&#148; or provide us with a representation that the Fund will not file a prospectus supplement for a take-down of &#147;debt securities&#148; unless the specific terms of the
offering are first disclosed in a post-effective amendment or a new registration statement that has been accelerated by the Staff. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: A <I>pro forma</I> copy of a supplement that will be used in connection with offerings of &#147;debt securities&#148;
has been filed as Exhibit 99.1 to the Registration Statement. </P> <P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Prospectus </B></P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Front Cover </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">3.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please consider bolding the following two sentences in the third paragraph on the cover page: </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The companies in which we invest typically are highly leveraged, and, in most cases, our investments in such companies are not rated by
national rating agencies. If such investments were rated, we believe that they would likely receive a rating which is often referred to as &#147;junk.&#148; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has bolded the two referenced sentences in the third paragraph on the cover page of the Prospectus as
requested. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">4.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please consider revising the statement required by Item&nbsp;1.1.j. of Form N-2 to state that investing in the Fund should be considered &#147;speculative,&#148; as well as involving &#147;a high degree
of risk.&#148; </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:4%; text-indent:4%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has revised the statement on the cover page of the
Prospectus as requested. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">5.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please disclose in the first paragraph under &#147;About This Prospectus,&#148; that the Fund will not receive the proceeds from any sales of the shares being registered by the Fund on behalf of the
selling shareholders. </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 3
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><U><B>Response</B></U>: The Fund has added disclosure in the first paragraph under
&#147;About This Prospectus&#148; in the Prospectus as requested. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Portfolio Composition, page 2 </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">6.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The disclosure, on page 2, states: &#147;At September&nbsp;30, 2014, the weighted average total yield of debt and income producing securities at amortized cost (which includes income and amortization of
fees and discounts) was 11.72%.&#148; Please disclose that this yield is higher than what investors in the Fund will realize because it does not reflect the Fund&#146;s expenses and any sales load paid by investors. Please explain to us why it is
appropriate for the Fund to calculate yield based on &#147;our unfunded obligations as if our unfunded obligations were fully funded.&#148; Please also disclose, in this subsection, the Fund&#146;s &#147;total return based on net asset value&#148;
and &#147;total return based on market value,&#148; as shown on page F-30. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has added the
requested disclosure related to the discussion of the weighted average yield and the Fund&#146;s &#147;total return based on net asset value&#148; and &#147;total return based on market value&#148; on page 2 of the Prospectus as requested. The Fund
has also revised the disclosure on page 2 of the Prospectus related to the calculation of its weighted average yield to indicate that its unfunded obligations are not included in the yield calculation. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>SBIC License, page 2 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">7.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please disclose that an SBIC would enable the Fund to add leverage that does not count against the limit imposed on the Fund by the Investment Company Act of 1940. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has added the requested disclosure on page 3 of the Prospectus. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Investment Strategy, page 6 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">8.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: In the first paragraph, please define the term &#147;upside participation interest.&#148; </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has revised the disclosure on pages 6 and 80 of the Prospectus to not use the term &#147;upside participation
interest.&#148; </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">9.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The disclosure, in the second paragraph, states: &#147;The Adviser pursues investments&#133;that offer high cash yields&#133;.&#148; Please delete this statement. It is inconsistent with the Fund
portfolio&#146;s level of original issue discount (&#147;OID&#148;). </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 4
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has revised the disclosure on page 6 of the Prospectus as
requested. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Investment Criteria, page 6 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">10.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The first bullet, on page 6, states that the Fund seeks to invest in &#147;[e]stablished companies with a history of positive operating cash flow.&#148; Please explain to us how this statement is
consistent with the Fund portfolio&#146;s level of OID securities. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The discounts in the Fund&#146;s
portfolio were generated in one of three ways: (i)&nbsp;securities purchased at a discount in the open market, (ii)&nbsp;a fee received from the borrower at the time of origination, which is accounted for like OID, or (iii)&nbsp;securities issued at
OID. Any securities in our portfolio that fall into the third category above, are cases where the OID was in substance an upfront fee and not a substantial original issue discount. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Investment Advisory Agreement Fees, page 11 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">11.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please clarify that, although the income incentive fee will be waived through 2016 and, thereafter, will only be paid on accrued PIK and other OID income when the accrual is actually collected, accrued
OID income will still be included in the calculation of the base management fee regardless of the incentive fee waiver and whether the amount owed is ever collected. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund respectfully advises the Staff that, as disclosed on page 11 and elsewhere in the prospectus, the Fund will
<B><I>only</I></B> waive its base management and/or incentive fees to the extent required in order for the Fund to earn a quarterly net investment income to support a minimum dividend. Further, the Fund advises the Staff that the disclosure
requested is included on page 11 of the Prospectus as the last sentence of the second paragraph as well as elsewhere in the Prospectus. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Taxation, page
12 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">12.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The disclosure states that the Fund intends to elect taxation as a regulated investment company (&#147;RIC&#148;) under Subchapter M of the Internal Revenue Code. The Fund completed its initial public
offering on February&nbsp;11, 2014. Please disclose how the Fund has been taxed for its first year of operation and why it has not yet made a RIC election. </TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 5
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund respectfully advises the Staff that, in accordance with the
provisions of the Internal Revenue Code the Fund intends to elect taxation as a RIC when it files its Federal tax returns for the fiscal year ended June&nbsp;30, 2014. The Fund expects to file its Federal tax returns in March 2015. The Fund further
advises the Staff that it has operated such that it qualifies to be treated as a RIC under Subchapter M of the Internal Revenue Code. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Risk Factors,
page 14 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">13.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The last bullet, on page 16, states: &#147;Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock.&#148; Please explain
this statement by summarizing the subsection with this title on page 48 and including a citation to it. Please also disclose whether the &#147;selling stockholders&#148; are subject to lock-up agreements and, if so, how long they are.
</TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund advises the Staff that the selling stockholders are no longer subject to any lock-up
agreement. Accordingly, the Fund has revised the prospectus to remove references to any such lock-up agreement. In addition, the Fund has added a description of the risks related to a sale of substantial amounts of our common stock in the public
market on page 7 of the Prospectus. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Fees and Expenses, page 17 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">14.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please add a footnote to the &#147;Annual Expenses&#148; heading that conveys substantially the following information: </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">(#) &#147;Net assets attributable to common stock&#148; equals the weighted average of our consolidated net assets estimated for the current
fiscal year, including anticipated net proceeds from offerings during the current fiscal year of $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million and anticipated borrowings during the current fiscal year of
$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, equal to &nbsp;&nbsp;&nbsp;&nbsp;% of our consolidated net assets or $&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; million. </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The amount of any offerings and borrowings (including any debt offerings) by the Fund depends on market conditions and
the Fund cannot, at this time, project its estimated proceeds related to such offerings, if any. To the extent the Fund undertakes an offering in the future, the Fees and Expenses table will be updated and included in a prospectus supplement filed
with the SEC to reflect that specific offering. Accordingly, the Fund has not added the requested footnote to the Fees and Expenses table in the prospectus. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 6
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">15.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please include an additional line in the Example providing: &#147;Total expenses assuming a 5% annual return solely from realized capital gains.&#148; </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund respectfully advises the Staff that the Example has been calculated as requested by the Staff. The Fund has
also revised the disclosure to clarify that the Example was calculated assuming a 5% annual return solely from realized capital gains. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">16.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The last sentence of the paragraph, on page 18, explaining the &#147;ordinary income component&#148; of the incentive fee states: &#147;There is no accumulation of amounts on the hurdle rate from quarter
to quarter and accordingly there is no clawback of amounts previously paid if subsequent quarters are below the quarterly hurdle and there is no delay of payment if prior quarters are below the quarterly hurdle.&#148; Please clarify whether this
statement relates to the discussion of the reversal of uncollectible OID accruals immediately preceding it. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund respectfully advises the Staff that the statement related to clawback of amounts previously paid is not
related to any reversals of accrued income related to deferred interest (such as PIK or OID). As noted in the disclosure, any such reversals could result in a reversal of the accrued income related to deferred interest and possible reductions or
eliminations of incentive fees in a quarter. The Fund has revised the disclosure on pages 18 and 100 of the Prospectus to clarify this point. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>PIK
interest payments we receive will increase our assets under management&#133;., page 25 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">17.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please disclose, in substance, the following additional risks of investing in PIK loans: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">a)</TD>
<TD ALIGN="left" VALIGN="top">The higher interest rates of PIK loans reflect the payment deferral and increased credit risk associated with these instruments, and PIK instruments generally represent a significantly higher credit risk than coupon
loans. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">b)</TD>
<TD ALIGN="left" VALIGN="top">PIK loans may have unreliable valuations because their continuing accruals require continuing judgments about the collectability of the deferred payments and the value of any associated collateral. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">c)</TD>
<TD ALIGN="left" VALIGN="top">The deferral of PIK interest payments increases the Fund&#146;s gross assets and, thus, increases the Adviser&#146;s base management fees and also increases investment income, and, thus, increases the Adviser&#146;s
income incentive fees, at a compounding rate. </TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 7
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">d)</TD>
<TD ALIGN="left" VALIGN="top">The deferral of PIK interest increases the loan-to-value ratio, which is a fundamental measure of loan risk. </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">e)</TD>
<TD ALIGN="left" VALIGN="top">Even if the accounting conditions for PIK interest accrual are met, the borrower could still default when the Fund&#146;s actual payment is due at the maturity of the loan. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has added an additional risk factor entitled &#147;Our investments may include PIK interest&#148; on pages <FONT
STYLE="white-space:nowrap">40-41</FONT> of the Prospectus as requested. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>We will be subject to corporate-level U.S. federal income tax if we are unable
to qualify or maintain our qualification as a RIC under Subchapter M of the Code, page 27 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">18.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The disclosure states: &#147;To qualify as a RIC under Subchapter M of the Code, we must meet certain source-of-income, asset diversification and distribution requirements.&#148; While the income test of
Section&nbsp;851(b)(2) of the Internal Revenue Code and the asset test of Section&nbsp;851(b)(3) are RIC qualification requirements, the distribution requirements of Section&nbsp;852 are not. Please revise the disclosure here and in the second
paragraph of the subsection, &#147;We have a limited operating history as a BDC and we have not yet elected to be treated as a RIC,&#148; on page 21. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund acknowledges that Section&nbsp;852 is technically about the treatment of a fund as a RIC rather than
qualifying as a RIC, however, Section&nbsp;852 provides that if the distribution requirement is not satisfied, the provisions of Subchapter M do not apply to a fund for calculating its tax.&nbsp;As a result, if the Fund does not satisfy the
distribution requirements under Section&nbsp;852, Subchapter M will not apply and the Fund will be subject to corporate-level tax.&nbsp;Accordingly, the Fund believes that the disclosure on pages 21 and 27 is appropriate to adequately discuss the
risks related to the Fund&#146;s qualification to be treated as a RIC. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Because we borrow money to make our investments, if market interest rates were
to increase, our cost of capital could increase, which could reduce our net investment income, page 32 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">19.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The last sentence of the first paragraph of this subsection states: &#147;There is no limit on our ability to enter derivative transactions.&#148; The Division of Investment Management has provided
guidance about derivative-related disclosure by investment companies in a letter from Barry D. Miller, Associate Director, Office of Legal and Disclosure, to Karrie McMillan, General Counsel, Investment Company Institute, dated July&nbsp;30, 2010.
That letter provides that such disclosure should: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">be in plain English; </TD></TR></TABLE>

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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 8
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

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<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">identify specifically the derivatives in which the fund intends to invest as part of its principal investment strategy; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">be tailored to the fund&#146;s specific use of derivatives, the extent of their use, and their related risks; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">provide investors with a specific risk profile of the fund&#146;s derivatives investments, rather than a list of risks of various derivative strategies. </TD></TR></TABLE>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">explain the purpose of the fund&#146;s derivatives trading; </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">and address the Fund&#146;s degree of economic exposure (not just the amount invested). </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Please revise the
Fund&#146;s derivative disclosure throughout the prospectus in substantial conformity with this guidance. This disclosure should be reviewed on an ongoing basis to assess its completeness and accuracy in light of the Fund&#146;s actual use of
derivatives. </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><U><B>Response</B></U><B>: </B>The Fund acknowledges the Staff&#146;s comment and advises the Staff that the Fund believes
that its derivative disclosure is accurate and specifically describes the Fund&#146;s expected use of derivatives, if any, and their risks. Please see the risk factor titled &#147;We may expose ourselves to risks if we engage in hedging
transactions&#148; appearing on page 41 of the Prospectus for additional detail. The Fund confirms that the Prospectus accurately and specifically describes the Fund&#146;s use of derivatives in a manner customized to currently proposed Fund
operations. The Fund will review the disclosure related to derivative transactions on an ongoing basis and, to the extent the Fund enters into relevant transactions in the future, it will include specific disclosure on its use of derivatives. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Sales of substantial amounts of our common stock in the public market may have an adverse effect on the market price of our common stock, page 48 </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">20.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please disclose that, as indicated on page 111, the Fund shares owned by Stifel are not subject to any lock-up period. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund advises the Staff that as of February&nbsp;6, 2015, Stifel and the Cyrus Funds are no longer subject to any
lock-up agreement. Accordingly, the Fund has revised the disclosure on page 48 of the Prospectus to remove references to any such lock-up agreement. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">21.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please disclose whether the 365-day lock-up period, to which the Cyrus-owned shares are subject, can be waived. If so, please disclose for whom, and for what reasons, the lock-up period can be waived.
</TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 9
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund advises the Staff that as of February&nbsp;6, 2015, the
Cyrus Funds are no longer subject to any lock-up agreement. Accordingly, the Fund has revised the disclosure throughout the Prospectus to remove references to any such lock-up agreement. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">22.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please provide us with an analysis of the effects of Rule 144 under the Securities Act on the sales of Fund shares by Stifel and the Cyrus Funds. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: Rule 144 defines the term &#147;affiliate&#148; as &#147;a person that directly, or indirectly through one or more
intermediaries, controls or is controlled by, or is under common control with such issuer.&#148; Further, under Rule 144, a 10% holder of any class of equity securities or equity interests of a company is presumed to be an affiliate of such company.
As disclosed in the Registration Statement, both Stifel and the Cyrus Funds hold more than 10% of the common stock of the Fund. Accordingly, unless the presumption of control under Rule 144 is rebutted, the shares held by Stifel and the Cyrus Funds
will be subject to applicable Rule 144 limitations, which limit the ability of a 10% holder of a public company to dispose of its shares. Rule 144 provides, in part, that persons who have beneficially owned &#147;restricted&#148; shares of the
Fund&#146;s common stock for at least six months but who are affiliates (as defined in Rule 144) of the Fund at the time of, or any time during the 90 days preceding, a sale, would be subject to restrictions, by which such person would be entitled
to sell within any three-month period only a number of securities that does not exceed the greater of either of the following: </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">1% of the total number of securities then outstanding; or </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="14%">&nbsp;</TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left">&#149;</TD>
<TD WIDTH="1%" VALIGN="top">&nbsp;</TD>
<TD ALIGN="left" VALIGN="top">the average weekly trading volume of our securities during the four calendar weeks preceding the date on which notice of the sale is filed with the SEC. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">Sales by affiliates under Rule 144 also are subject to certain manner-of-sale provisions, notice requirements and the availability of current
public information about the Fund. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Financing Facility, page 63 </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">23.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: It would aid investor understanding if this subsection included a diagram to illustrate the operation of the Fund&#146;s &#147;Financing Facility.&#148; </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund acknowledges the Staff&#146;s comment, however, the Fund believes that adding diagram illustrating the
operation of the Financing Facility would over-complicate the disclosure. Therefore, the Fund does not believe that adding a diagram would aid in the understanding of the disclosure related to the Financing Facility. </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 10
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">24.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The components of the acronym &#147;TRS&#148; are not identified until page F-13. Please clarify in this subsection that a &#147;TRS&#148; is a &#147;total return swap.&#148; </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has revised the disclosure on page 63 of the Prospectus as requested. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">25.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please describe, in plain English, the mechanics and the relationship of the securitization transaction using the SPV and the total return swaps using the SPV-issued notes. This description should also
include the leverage built into the swaps; and the risks the swaps create for the Fund. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund
acknowledges the Staff&#146;s comment, however, the Fund believes the disclosure relating to the Financing Facility is adequate for a reader to understand the structure of the Financing Facility. The Fund has, however, added a cross reference to the
Notes to the Fund&#146;s Consolidated Financial Statements. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">26.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please explain, in plain English, the &#147;embedded derivative&#148; in the SPV-issued notes. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund acknowledges the Staff&#146;s comment, however, the Fund believes the disclosure relating to the Financing
Facility, including the embedded derivative, is adequate for a reader to understand the structure of the Financing Facility. The Fund has, however, added a cross reference to the Notes to the Fund&#146;s Consolidated Financial Statements. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">27.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please provide disclosure addressing the following issues: </TD></TR></TABLE> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">a)</TD>
<TD ALIGN="left" VALIGN="top">How will the Fund satisfy the asset coverage requirements of Section&nbsp;18(a), as modified by Section&nbsp;61(a), of the Investment Company Act with respect to the total return swaps? </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: Consistent with the Staff&#146;s guidance regarding total return swaps for purposes of the asset coverage requirements
of Section&nbsp;18 of the 1940 Act, applicable to it as a business development company under Section&nbsp;61 of the 1940 Act, the Fund treats the assets underlying the total return swap as assets of the Fund for such regulatory purposes. </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 11
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>

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<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">b)</TD>
<TD ALIGN="left" VALIGN="top">Will Section&nbsp;55(a) of the Investment Company apply to the reference securities of the total return swaps and, if so, how? </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: Section&nbsp;55(a) of the Investment Company Act will apply to the assets underlying the total return swap because the
assets are held by CM SPV, a wholly owned subsidiary of the Fund that is consolidated with the Fund. See Note 1 to the Fund&#146;s Consolidated Financial Statements as of and for the quarter ended December&nbsp;31, 2014. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%">&nbsp;</TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">c)</TD>
<TD ALIGN="left" VALIGN="top">Is the calculation of the base management fee affected by the total return swaps and, if so, how? How does the Fund calculate the income and capital gain incentive fees on the total return of the swaps?
</TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The base management fee is not affected by the total return swap. As disclosed in Note 7 to the
Company&#146;s financial statements, even though the investment advisory agreements permits that base management fees be charged on total assets excluding cash, the Company excludes the fair value of the total return swaps and cash from total assets
to compute base management fees. See excerpt of disclosure below: </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">On February&nbsp;5, 2014, upon the Company&#146;s election to be
regulated as a BDC, the Company entered into an Investment Advisory Agreement with the Investment Manager. Pursuant to this agreement, the Company has agreed to pay to the Investment Manager a base management fee of 1.75% of gross assets, as
adjusted, including assets purchased with borrowed funds or other forms of leverage and excluding cash and cash equivalents and <B>&#147;fair value of derivatives associated with the Company&#146;s financing</B>,&#148; and an incentive fee
consisting of two parts. [Emphasis added.] </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The calculation of the income and capital gains incentive fee is not affected by the total
return swap. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Board Approval of the Investment Advisory Agreement, Page 105 </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">28.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: The disclosure does not meet the specificity requirements of Instruction 6.f. to Item&nbsp;24 of Form N-2. Specifically: &#147;Conclusory statements or a list of factors will not be considered sufficient
disclosure under Instruction 6.e. Relate the factors to the specific circumstances of the Registrant and the investment advisory contract and state how the board evaluated each factor.&#148; Please provide the required disclosure. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has revised the disclosure on page 106 of the Prospectus as requested. </P>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 12
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Determination of Net Asset Value, page 113 </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">29.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please disclose whether the board has adopted written fair value policies and procedures in accordance with Section&nbsp;2(a)(41) of, and Rule 2a-4(a)(1) under, the Investment Company Act.
</TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has revised the disclosure on page 115 of the Prospectus as requested. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">30.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please disclose whether the board will review and approve in advance the valuation methodologies of the independent valuation firms it will use to assist it and that the board will regularly review the
historical accuracy of these methodologies. <I>See</I> Release No. IC-26299; <I>Compliance Programs of Investment Companies and Investment Advisers</I>, (December 17, 2003). </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund confirms that the Fund&#146;s board of directors and/or the valuation committee thereof generally oversees the
appointment of any third party valuation service firm and periodically evaluates the performance and methodologies of any such third party valuation firm. </P>
<P STYLE="margin-top:24pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center"><B>Financial Statements </B></P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">31.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: File an updated consent with the amended N-2 filing.</TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>:
The Company has filed an updated consent as an exhibit to the Registration Statement. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">32.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Update with the unaudited quarterly information if the 12/31/14 Form 10-Q is filed before effectiveness.&nbsp;(The Form 10-Q is due February&nbsp;14, 2015.) </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Company has updated the Registration Statement to include the unaudited quarterly information at December&nbsp;31,
2014. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Filing History: </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">33.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please explain why a 10-Q for the 12/31/13 reporting period was filed.&nbsp;The Registrant was not declared effective until 2/5/2014, therefore, the Registrant was not a BDC until 2/5/2014.
</TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 13
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: Rule 13a-13 under the Securities Exchange Act of 1934, as amended
(the &#147;1934 Act&#148;) states in part that, </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman">&#147;every issuer that has securities registered pursuant to Section&nbsp;12 of the
[1934] Act and is required to file annual reports pursuant to section 13 of the [1934] Act . . . and intends to file such reports on Form 10-K, shall file a quarterly report on Form 10-Q . . . for the first fiscal quarter subsequent to the quarter
reported upon in the registration statement.&#148; was required to file a Form 10-Q &#147;for the first fiscal quarter subsequent to the quarter reported upon in the registration statement.&#148; </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">The Fund&#146;s first fiscal quarter subsequent to the quarter reported upon in the registration statement was December&nbsp;31, 2013.
Accordingly, in compliance with Rule 13a-13 under the 1934 Act, the Fund filed a Form 10-Q with the SEC for the quarter ended December&nbsp;31, 2013. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>June&nbsp;30, 2014 financial statements: </U></P> <P STYLE="margin-top:6pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Page F-33:
Audited Consolidated Statement of Assets and Liabilities: </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">34.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Disclose any payables to Trustees separately, in accordance with Article 6-04-12(b)(1) of Regulation S-X: </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund hereby undertakes to disclose any payable in accordance with Article 6-04-12(b)(1) in future financial
statements filed with the Commission. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Page F-34: Audited Consolidated Statement of Operations: </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">35.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment:</U> We note that &#147;Other Expenses&#148; represent 9.51% of &#147;Total Expenses&#148;.&nbsp;Have the disclosure requirements of Article <FONT STYLE="white-space:nowrap">6-07.2(b)</FONT> of Regulation S-X
been met?</TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund hereby confirms that the disclosure requirements of Article 6-07.2(b) of
Regulation S-X have been met. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">36.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: We note &#147;Other Fee Income&#148; in the amount of $601,590.&nbsp;Please include detail of this fee income either on the face of the Statement of Operations or in the Notes to Financial Statements so
that shareholders may assess the nature of the fee income and whether it is recurring or non-recurring income.</TD></TR></TABLE>

<p Style='page-break-before:always'>
<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 14
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund hereby undertakes to include details of the reference fee
income as requested in the notes to future financial statements filed with the SEC. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Page F-35: Audited Consolidated Statement of Changes in Net
Assets: </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">37.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: We note &#147;Dividends&#148; in the amount of $7,089,351. Disclose the nature of the distributions.&nbsp;Refer to Article 6-09.3 of Regulation S-X.&nbsp;Additionally, any tax return of capital
distributions should be disclosed separately.&nbsp;Refer to the AICPA Audit Guide of Investment Companies as of May&nbsp;1, 2014 (AAG-INV 7.134c): </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund respectfully advises the Staff that it expects all dividends paid to date will be paid from ordinary income
and not as a return of capital. The exact nature of any distributions paid by the Fund for the calendar year ended December&nbsp;31, 2015 will not, however, be determined until the end of the calendar year. The Fund hereby undertakes to disclose the
nature of dividends declared in future financial statements filed with the SEC. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Pages F-37-F-38:&nbsp;Audited Consolidated Schedule of Investments:
</U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">38.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please explain why only the Virgin American warrants are marked as non-income producing.</TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The equity, warrants and other investments in the Fund&#146;s Consolidated Schedule of Investments for the periods
ended after June&nbsp;30, 2014 have been updated to indicate that such investments are non-income producing investments as appropriate. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">39.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: We note that certain portfolio holdings pay PIK interest.&nbsp;The SEC staff believes that if an issuer has the ability to pay a range of PIK interest, the current PIK and cash interest rates should be
disclosed on the schedule of investments, along with the possible PIK interest rate range or the maximum PIK interest rate that could be paid.</TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund acknowledges the Staff&#146;s comment and notes that it has disclosed in the Fund&#146;s schedule of
investments the applicable cash and PIK interest rate. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE; font-family:Times New Roman; font-size:10pt" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">40.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Footnote (4)&nbsp;identifies those portfolio companies that are not qualifying assets.&nbsp;Please explain the significance of non-compliance with Section&nbsp;55(a) of the 1940 Act in future
filings.&nbsp;Refer to Instruction 1b to Item&nbsp;8.6c of Form N-2. </TD></TR></TABLE>

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<HR  SIZE="3" style="COLOR:#999999" WIDTH="100%" ALIGN="CENTER">


 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 15
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund acknowledges the Staff&#146;s comment and hereby undertakes
to explain the significance of non-compliance with Section&nbsp;55(a) of the 1940 Act in future filings. </P> <P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Page F-62: Financial Highlights: </U></P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">41.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment:</U> Disclose the nature of the &#147;dividends declared&#148;.&nbsp;Refer to Item&nbsp;4.1.c of Form N-2.</TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund respectfully advises the Staff that it expects all dividends paid to date will be paid from ordinary income
and hereby undertakes to disclose the nature of dividends declared in future financial statements filed with the SEC. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">42.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment:</U> Please explain why the &#147;sales load&#148; is disclosed as a per share element of the financial highlights table.&nbsp;The sales load is paid by shareholders and is not an expense of the
fund.&nbsp;Refer to the AICPA Audit Guide of Investment Companies, AAG-INV 8.30. </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund hereby
undertakes to remove &#147;sales load&#148; as a per share element of the financial highlights table in future financial statements filed with the SEC. </P>
<P STYLE="margin-top:18pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><U>Notes to Financial Statements: </U></P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">43.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Page F-46 discloses the components of distributable earnings on a tax basis of $(153,157).&nbsp;Please reconcile this total to the total of distributable earnings on the Audited Consolidated Statement of
Assets and Liabilities of $1,392,368, which is the sum of &#147;distributions in excess of net investment income&#148; and &#147;net unrealized appreciation on investments&#148;. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Audited Consolidated Statement of Assets and Liabilities for the Fund are prepared in accordance with GAAP and
therefore, represent gains and losses since the inception of the Fund&#146;s predecessor, CM Finance LLC, in March 2012. In conjunction with the Fund&#146;s initial public offering on February&nbsp;5, 2014, CM Finance LLC and CM Finance Inc merged
and for GAAP purposes there was a continuation of the operations of the Fund. For tax purposes, however, CM Finance LLC was liquidated and CM Finance Inc was deemed to acquire the assets from CM Finance LLC at the fair value on the merger date. </P>


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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 16
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman">As such, the GAAP numbers are from inception through June&nbsp;30, 2014 and the tax numbers
are from the merger date through June&nbsp;30, 2014. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">44.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Page F-56- In the chart detailing the ranges of significant unobservable inputs used to value the Company&#146;s Level 3 investments, bifurcate the fair value by valuation methodology.&nbsp;For example,
the &#147;Senior Secured First Lien Term Loans&#148; with a market value of $112,078,038 are disclosed as being valued using &#147;yield analysis&#148;, &#147;broker quoted&#148; and &#147;collateral coverage&#148;.&nbsp;Refer to the AICPA Expert
Panel Meeting Minutes: November&nbsp;8, 2012 meeting: </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>The SEC staff also referred to the SEC Corp Fin staff remarks at
the recent AICPA Banking Conference (<U>http://www.sec.gov/news/speech/2012/spch091212sc.pdf</U>) discussing themes of comments which Corp Fin staff have been giving to registrants. One of the themes was regarding the use of multiple valuation
techniques for certain classes of instruments, where such valuation techniques are not bifurcated and there is no disclosure of the fair value under each valuation technique. The SEC staff provided an example of a BDC with senior debt in Level 3,
where both a discounted cash flow valuation technique and market comparable valuation technique were used, each technique used for different holdings within senior debt. The fund only provided total fair value for the total senior debt and did not
separately disclose the fair value derived from the discounted cash flow technique and the fair value derived from the market comparable technique.</I> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund acknowledges the Staff&#146;s comment and hereby undertakes to bifurcate the fair value by valuation
methodology. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">45.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Page F-58- Note 7 discloses commitments and contingencies and contains a table detailing unfunded commitments.&nbsp;Note (2)&nbsp;to the Audited Consolidated Schedule of Investments discloses
&#147;principal amount includes capitalized PIK interest and is net of repayments and unfunded commitments&#148;. Please explain the presentation of unfunded commitments.&nbsp;Please confirm that the unfunded commitments are accounted for in
accordance with the comments discussed at the January 2006 AICPA Expert Panel Meeting: </TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><I>In making senior loan investments,
the RIC might make commitments to provide funding for a loan prior to it being issued or commit to additional amounts beyond the existing funded portion.</I> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><I>Such unfunded commitments might create a value to the RIC different from the underlying commitment, which would create unrealized
appreciation or depreciation.</I> </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 17
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><I>For each unfunded commitment, the RIC should disclose the amount and extended value of
the unfunded commitment as of the date of the reporting period.</I> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><I>The RIC may provide this disclosure by including a listing of
unfunded commitments by senior loan in a separate schedule located within the schedule of investments or within the notes to the schedule of investments or notes to the financial statements.</I> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><I>Alternatively, the RIC may state the amount and extended value of the unfunded commitment within a footnote attached to each senior
loan.</I> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:13%; font-size:10pt; font-family:Times New Roman"><I>The EP noted that the effect of such valuation changes should be recognized in determining the net asset value of the RIC
even in situations in which the entire unfunded commitment itself is not reflected as a liability because it does meet the FASB Statement No.&nbsp;5 requirements.</I> </P>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund hereby undertakes to disclose the value of unfunded commitments separately in future financial statements
filed with the SEC. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">46.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Page F-59- Please confirm that a capital gains incentive fee accrual is made based on unrealized gains.&nbsp;Refer to the AICPA Audit Risk Alert 2011/2012, &#147;Investment Company Industry
Developments&#148;, section .82: </TD></TR></TABLE> <P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"><B><I>.82 </I></B><I>Certain BDCs are accruing incentive fees in their financial statements based on the
amount by which net realized gains (that is, realized gains less realized losses) exceed unrealized losses and are excluding unrealized gains in this calculation. This incentive fee accrual methodology is not in accordance with the accrual basis of
accounting in generally accepted accounting principles (GAAP) or TIS section 6910.29. BDCs should accrue incentive fees based on the amount by which net realized gains and unrealized gains exceed unrealized losses even though Section&nbsp;205(b)(3)
of the Advisers Act prohibits advisers from receiving payment of fees based on unrealized gains.</I> </P> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund
hereby confirms that the capital gains incentive fee accrual is made based on unrealized gains. In addition, the Fund has added disclosure on page 101 of the Registration Statement regarding this matter. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">47.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Page F-59- Please add disclosure that the fees permanently waived by the adviser are not subject to future repayment by the BDC.</TD></TR></TABLE>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
 18
 </P> <p STYLE="margin-top:0pt;margin-bottom:0pt ; font-size:8pt">&nbsp;</P>
 <P STYLE="margin-top:0pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund hereby undertakes to add the requested disclosure in future
financial statements filed with the SEC. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">48.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Page F-61- Please use the term &#147;distributions&#148; rather than &#147;dividends&#148; when describing distributions declared since the nature of the distribution is not known at the time of
declaration.&nbsp;This comment applies to all portions of the Registration Statement.</TD></TR></TABLE> <P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund has
revised the disclosure in the Prospectus as requested. The Fund also hereby undertakes to revise the disclosure in future financial statements filed with the SEC. </P> <P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">49.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please include a chart in both the Registration Statement and financial statements that detail the source of the distributions paid to shareholders (net investment income, gains, offering proceeds,
borrowings, expense reimbursement from sponsor, etc&#133;) and disclose what the character of the distributions would have been absent any expense reimbursement agreements. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund hereby undertakes to add the requested chart in future financial statements filed with the SEC. </P>
<P STYLE="font-size:6pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left">50.</TD>
<TD ALIGN="left" VALIGN="top"><U>Comment</U>: Please confirm whether the Fund holds liquid assets sufficient to cover its unfunded commitments in a segregated account or otherwise sets aside liquid assets for this purpose. Please note that if liquid
assets are not held in a segregated account, such unfunded commitments will be deemed a senior security. </TD></TR></TABLE>
<P STYLE="margin-top:6pt; margin-bottom:0pt; margin-left:8%; font-size:10pt; font-family:Times New Roman"><B><U>Response</U></B>: The Fund respectfully advises the Staff that it had sufficient liquid assets as of December 31, 2014 and June 30, 2014
to cover its unfunded commitments. The Fund further advises the Staff that it will maintain a policy to set aside liquid assets sufficient to cover its unfunded commitments. The Fund hereby undertakes to include disclosure regarding this policy in
future financial statements filed with the SEC. </P>
<P STYLE="margin-top:12pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman" ALIGN="center">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;* </P>

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 <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Mr. James O&#146;Connor </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Christina DiAngelo Fettig </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">Division of Investment Management </P>
<P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman">March 5, 2015 </P> <P STYLE="margin-top:0pt; margin-bottom:0pt; font-size:10pt; font-family:Times New Roman"> Page
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 <P STYLE="margin-top:0pt; margin-bottom:0pt; text-indent:4%; font-size:10pt; font-family:Times New Roman">If you have any questions or additional comments concerning the foregoing, please contact me
at (202)&nbsp;383-0176 or Stephani Hildebrandt at (202)&nbsp;383-0845. </P> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P><DIV ALIGN="right">
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<TD WIDTH="100%"></TD></TR>


<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Sincerely,</TD></TR>
<TR STYLE="font-size:1pt">
<TD HEIGHT="16"></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top"> <P STYLE="margin-top:0pt; margin-bottom:1pt; border-bottom:1px solid #000000; font-size:10pt; font-family:Times New Roman">/s/ Steven B. Boehm</P></TD></TR>
<TR STYLE="font-family:Times New Roman; font-size:10pt">
<TD VALIGN="top">Steven B. Boehm</TD></TR>
</TABLE></DIV> <P STYLE="font-size:12pt;margin-top:0pt;margin-bottom:0pt">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">cc:</TD>
<TD ALIGN="left" VALIGN="top">Michael C. Mauer, CM Finance Inc </TD></TR></TABLE>
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