Management Discussion & Analysis  financing on acceptable terms. As Alaris grows, we will also be required to hire, train, supervise and manage  new employees. Failure to manage effectively any future growth or to execute on our business plans to add  new Private Company Partners could have a material adverse effect on our business, reputation, financial  condition and results of operations.  If Alaris is successful in partnering with one or more new Private Company Partners, the businesses of these  Private Company Partners may be subject to one or more of the risks referred to under " Risk Factors Relating  to our Private Company Partners " or similar risks and may be subject to other risks particular to such business  or businesses. We are subject to risks affecting any new Private Company Partners We may be adversely affected by general economic and political conditions We face competition with other investment entities In addition, economic conditions in North America and globally may be affected by political events  throughout the world that cause disruptions in the financial markets, either directly or indirectly. In  particular, conflicts, or conversely peaceful developments, arising in the Middle-East and other areas of the  world that have a significant impact on the price of important commodities can have a significant impact  on financial markets and global economy. Any such negative impacts could have a material adverse effect  on our Company and our Private Company Partners’ business, financial condition, results of operations  and cash flows. Our business and the business of each of the Private Company Partners are subject to changes in national  or North American economic conditions, including but not limited to, recessionary or inflationary trends,  equity market levels, consumer credit availability, interest rates, consumers' disposable income and spending  levels, job security and unemployment, and overall consumer confidence. Market events and conditions in  the last 3 years, including disruptions in the international credit markets and other financial systems and  the American and European Sovereign debt level resulted in a deterioration of global economic conditions.  These conditions have caused a decrease in confidence in the broader U.S. and global credit and financial  markets and created a climate of greater volatility, less liquidity, widening of credit spreads, a lack of price  transparency, increased credit losses and tighter credit conditions. Notwithstanding various actions by  governments, concerns remain about the general condition of the capital markets, financial instruments,  banks, investment banks, insurers and other financial institutions have caused the broader credit market to  further deteriorate and stock market to decline substantially. This volatility may in the future affect our  ability to obtain equity or debt financing on acceptable terms. These factors have also negatively impacted  company valuations and will impact the performance of the global economy going forward and could have a  material adverse effect on our and our Private Company Partners’ business, financial condition, results of  operations and cash flows.  Alaris competes with a large number of private equity funds and mezzanine funds, investment banks, equity  and non-equity based investment funds, and other sources of financing, including the public capital  markets. Some of our competitors, particularly those operating in the United States, are substantially larger  and have considerably greater financial resources and available funding structures than us. Competitors  may have a lower cost of funds and many have access to funding sources and unique structures that are not  available to Alaris. In addition, some of our competitors may have higher risk tolerances or different risk  assessments, which could allow them to consider a wider variety of investments and establish more  relationships and build their market shares. There is no assurance that the competitive pressures that we  Alaris Royalty Corp. 2011 Annual Report   67 