Craig Siegenthaler: Thank you, Mike, Kipp for the comprehensive response there. Just as my follow-up, I know Ares likes to be opportunistic in recessions. And I think we’ll always remember the ARCC acquisition of Allied in the financial crisis. But how should we think about opportunistic M&A at the holdco level? And then also at the BDC level, should a recession here transpire?
Michael Arougheti: Yeah. Look I think we have a lot of experience being opportunistic on corporate M&A at the parent company within the publicly traded subsidiaries and within our portfolio. It’s core to who we are as investors and managers. I would expect that those opportunities will present themselves given how liquidity constrained certain parts of the market are and certain competitors are. It’s still a little early for that Craig, but needless to say to the extent that there are opportunistic chances for us to either acquire portfolios of assets or businesses at attractive entry points you should expect that we’ll do
Craig Siegenthaler: Thank you, Mike.
Operator: Thank you. The next question today comes from the line of Alex Blostein from Goldman Sachs. Please go ahead, your line is now open.
Alex Blostein: Hi, good morning everybody or good afternoon. Thanks for the question. I was hoping we could start maybe with a question around Mike just kind of getting your pulse on opportunities for credit deployment. When we look at the fourth quarter you seem to have been very active in what was generally I think a fairly slow environment for new deal activity. So, maybe expand a little bit where you guys were more active. And more importantly looking into kind of what you’re seeing so far in 2023 areas where you expect to be a little more active and a little less active in how active are the banks. So I’m assuming not a lot of activity from the banks. But are they starting to come back to the market a little bit more given the fact that the market backdrop has gotten a little bit more constructive?
Michael Arougheti: Yes. Thanks for the question Alex. So, interesting we noted this in the prepared remarks, I was pleased to see that when we totaled everything up after what was a challenging year for markets generally that our deployment was right on par with what it was in 2021 and 2021 was obviously a different market backdrop just in terms of velocity of capital and transaction activity. And I think that that speaks to the breadth of the platform by geography, by asset class and it speaks to the ability of most of our funds to pivot opportunistically between liquid and illiquid markets and move around the balance sheet when the markets are transitioning. So, if you were to drill down into where the capital is being put to work, there was obviously a slight mix shift towards public markets as we were seeing.
And we’ve talked about this before opportunities emerge in the public markets that were frankly more attractive than what we were self-originating in the private markets. As those markets start to come more in line with one another we were able to start to be more opportunistic on the private side of the house as well and that continues. So, look even in markets where you have lower transaction volumes given the competitive dynamic today, meaning challenged access to the public equity market challenged access in the loan and high-yield markets, lower bank liquidity, private market solutions are pretty important. Right now is the marginal liquidity provider. So, we’re finding ample things to do irrespective of a lower M&A environment. When you look at ultimately pipeline development, I think we’re not going to see M&A volumes at least in the private markets pick up to where they were until we all agree that we stabilized from a rate perspective.
