Kipp DeVeer: It’s reasonably important. I made the point in the prepared remarks, but I’ll just reiterate it. I mean larger companies tend to be more diverse, right, in terms of their revenue and their profits. They tend to have greater reason to exist, right, on the downside to the extent you need to actually work things out. And in the private equity landscape, they frankly tend to be owned by larger better capitalized, better established private equity firms and almost all the time, they have better management teams and small cap companies. So I would tell you, I’d much rather lend 5x debt-to-EBITDA if it was $300 million EBITDA company that I would do a $10 million EBITDA company. And we’ve seen that the credit profile of these larger businesses is just better for a host of those reasons.
Mark Hughes: Understood. Then looking at the backlog and pipeline, it looks like there’s household, personal products, pharma, maybe that’s a little more defensive. Is that — am I reading that properly? Is that something on your part or just those deals are more likely to be getting down these days?
Kipp DeVeer: Yes, I mean, I think we’re being pretty cautious in the current environment. Those examples, in particular, things that are common industries when we target investments regardless of whether it was a backlog for this quarter or not. But yes, we’re definitely taking a more defensive posture wanting to see how 2023 plays out. The backlog is pretty light as Kort was talking about going into Q1, and we’re hopeful it picks up. And my guess is it will be more diversified and larger here as winter comes to an end in the spring rolls around and folks reevaluate deal activity and how to get things done for the remainder of the year. But I think that backlog, the industry mix is in line with what we’ve done historically.
Operator: . The next question today comes from the line of Erik Zwick from Hovde Group.
Erik Zwick: Just a question on your capital structure and that you’ve raised equity a few times over the past few quarters. And just curious how you look at that today versus raising additional unsecured debt? And then what that might mean for kind of your plans as you project the 23 year at this point?
Kipp DeVeer: Yes. Thanks for the question, Erik. We don’t really talk a lot about our capital raising plan. I mean, look, the equity issuance for us is a pretty strong statement that we have a desire to grow the company because we see the investment opportunity around us as being exceedingly attractive. Hand in hand with that is obviously the fact that we try to maintain a leverage ratio somewhere between 0.9 and 1.25x our equity capital base, and we’re at the upper end of that. So the equity raise, there was certainly a consideration as well around the leverage ratio and how we thought about availability. Plans for raising capital or TBD, we’ll see how the environment looks around us. We’ve got a maturity on a bond deal here in the next week or 2, if I remember correctly, which we can satisfy with existing borrowings.
So we don’t have any need to go out and raise that capital, but we’re always opportunistic and thoughtful — that market seems to be — the high-grade market seems to be finally healing a little bit, and our existing unsecured notes are trading better, I’d say, more in line with market reality. So hopefully, that market is reopening for us. But we’ll see for the remainder of this year, and we’re probably not going to provide any comments beyond that in terms of our thoughts around capital raising, if that’s all right. But thanks for the question.
Erik Zwick: That was helpful, particularly with regard to the fact — kind of the trading of those unsecured notes and that market seems to be loosening. So — that’s all I had today.
