Daniel Fannon: So I wanted to follow up just on some of the flow trends. I think certainly some seasonal improvement as we see the numbers in the first quarter. I believe you did highlight that there was $1 billion of inflows in certain quant funds, but ex, it — basically that’s a little bit more a new disclosure. So trying to bifurcate what was within the quant bucket, maybe a little more detail of what was doing well. And then maybe just talk prospectively here about the fundraising kind of private markets outlook, given what is viewed as maybe a broader slowdown in this kind of backdrop and maybe what you’re seeing if that’s different.
Jay Horgen: Thanks for your question. I’m going to have Tom start with that.
Tom Wojcik: Thanks, Dan. So I think I’ll try and hit all of that and just give you an overview in terms of not only what we saw in flows, but also just generally kind of how the business is setting up in terms of client trends going forward. So as Jay talked about in some of his prepared remarks, our growth strategy really is driving an evolution of our business mix more toward key secular growth areas. And as we continue to execute against that strategy, we really enhanced the long-term economic profile of the business, organic growth and earnings growth overall. In terms of where we currently stand, I’d say the flow story continues to be bifurcated, really strength across alternatives and then some pluses and minuses on the fundamental equity side.
And to your point, overall, the first quarter was a really good start to the year for us relative to some of the headwinds we saw last year. We continue to benefit from the diversity and depth of our private markets Affiliates, and we’re seeing them raise assets across a number of well-positioned strategies, including credit, infrastructure and real estate. And as you know, these flows are incredibly valuable given their fee rate, their duration and the potential to create carry over time. And to your question, I think we’re positioned a bit differently from some others in the private market space, given the vast majority of our exposure there is not sort of traditional buyout-style private equity. But more specialized strategies that are not as exposed to some of the denominator effect issues that we’re seeing in the market.
On the liquid alternatives side, we’re delivering excellent performance, and that continues to translate into flows. More than 90% of the AUM in our liquid alternatives book has delivered alpha over a 3-year period. And we’re having very active dialogue with clients around portfolio construction and the value of uncorrelated and diversifying return sources. And you mentioned what we’re seeing on the certain quant side, and we did sort of raise that in my prepared remarks. We’ve seen very strong performance there from a number of our Affiliates over the course of the past couple of years, particularly within alternatives and particularly within absolute return strategies. So it was nice this quarter to start to see some of the early impact of that in terms of client flows into those certain quant strategies that it had some historical challenges.
In total, over the last couple of years, we’ve seen more than $40 billion of inflows into alternative strategies, and alternatives now represent nearly 50% of our overall run rate EBITDA. And then maybe to touch briefly on the equity side, as I mentioned, kind of a tale of 2 cities. On the global side, we are continuing to see some headwinds in line with what we’re seeing in the industry, but still very good long-term track records, very high-quality Affiliate businesses and brands. And I think it’s also worth noting that we have some very strong performance in a number of international products that sit in that category, and that’s an opportunity for us. On the other side, in U.S. equities, we’re very well positioned. 80% of our AUM is outperforming across all time periods.
