Michael Arougheti: Yes. Thanks for the question. I think you’re spot on that energy transition and climate infrastructure are increasingly important topics across the landscape. I think the good news is we were early in identifying that transition as an opportunity. So as a reminder in our fifth infrastructure fund here which goes back now 2.5 vintages, we pivoted from more traditional energy infrastructure into renewables and renewable energy. And now in the rearview mirror when you look at that fund, about 60% of our deployment in that fifth fund wound up being in the energy transition and renewable power with appropriately high returns relative to traditional power players. That set us up to launch our first climate infrastructure fund, a couple of years ago.
Candidly the fundraise took longer than I would have expected because I think we were a little early in recognizing the long-term secular trend there. Good news is it was well raised and well invested and we are now in the market with our second climate infrastructure fund and are actively raising that. And while it’s not closed yet, I think given some of the demand for exposure to energy transition, we have confidence that it will be. Obviously, there’s a lot of positive catalyst, particularly in the US market on the heels of the Inflation Reduction Act. That’s also helping to bolster investor demand. Two, as we talked about in the prepared remarks, we obviously made the acquisition of the AMP infrastructure lending business. That team and fund family has been fully-integrated into the platform.
We had a successful close on IDF V at $5 billion. Last year that fund is well deployed. And while it invest broadly across the infrastructure spectrum, not surprisingly they too were benefiting from the increase in appetite for in transaction activity within energy transition. And then probably most recently, which we’re super excited about is the announcement that we made out of our SPAC Ares Acquisition Corp., where we are entering into a transaction to merge with Ex Energy, which is a fourth generation small modular nuclear reactor business, which we think is really at the forefront and cutting edge of the future of the energy transition. So we’re very focused on it. We have multiple products and avenues to invest behind it, and I would think that with continued good performance that that’s going to continue to be a good growth area for us.
Gerry O’Hara: Great. Thanks for the reminder and update. That’s it for me. Appreciate it.
Michael Arougheti: Thanks Gerry.
Operator: Thank you. The next question today comes from the line of Patrick Davitt from Autonomous Research. Please go ahead. Your line is now open.
Patrick Davitt: Good afternoon, everyone. Thanks. Most have been asked. Maybe could you speak a little bit how the wealth management flow experience has evolved since quarter end and if you’re seeing any meaningful impact of the press noise, obviously, in that channel kind of late in the quarter?
Michael Arougheti: Yeah. So the good news is these numbers get publicly released so you guys will be able to see how we’re doing. I think the good news from our perspective is that we’ve been having a different experience than some of the larger peers. If you look at our wealth management platform right now, we have obviously our two non-traded REITs AI REIT and AREIT. We have our interval fund. We have our recently launched private markets fund and as we talked about our recently formed non-traded BDC. And if you look across all four, we’ve actually had positive flows. So to put that in perspective, if you look at inflows into the non-traded REITs, Q4 inflows were about $430 million against outflows about $157 million, so a healthy cushion.
