Just to contextualize it that $430 million was down from a little over $840 in Q3. So not surprisingly given, I think some of the noise in the channel but also just some of the market reaction to transitions in the real estate business. We’ve seen slower inflows, but we haven’t seen a disproportionate amount of outflows and that’s generally been the case throughout the course of the year. Going into 2023, still too early. But again as we mentioned in the prepared remarks, while our two REITs are quite substantial, aggregating about $13.5 billion in the aggregate, we’re just growing off of a smaller base. That puts us in a position where we can continue to add distribution partners. And as I mentioned in our prepared remarks, we fully expect that we’ll be adding two new wirehouse partners for those products in the first half of this year.
So some of the headwinds we’re able to grow through just as we’re adding new distribution relationships. And then we do have some unique elements to our business in terms of how we invest, but probably most importantly is we have a 1031 exchange program that feeds into both of our REITs that just promotes a stickier investor base if you will. So it’s something we’re watching closely. We are not slowing our investments in the channel. We’re still very long-term believers in the growth in that market. And at least as we’re experiencing it we’ve seen a modest slowdown in inflows, but we’re not seeing net outflows.
Patrick Davitt: Great. That’s all I have got. Thank you.
Operator: The next question today comes from the line of Adam Beatty from UBS. Please go ahead. Your line is now open.
Adam Beatty: Hi. Thank you. Good afternoon. Just wanted to get an update on the secondaries business. I think last quarter there was a little bit of rebranding maybe some trunk A fundraising. Seems like an opportune time to be out in the market with something like that so I just wanted to get maybe some outlook on when you might be back in the market what kind of funds and maybe how — what kind of magnitude we’re looking at? Thank you.
Michael Arougheti : Sure. So the update is you’re right. We have fully integrated what was the landmark platform. We’re very pleased with the way that the integration has grown. We have added a significant number of new people across the platform here in the US and Europe and as I mentioned earlier in Asia Pacific. What we have tried to build just to leverage the strengths that we have within the GP and LP community is kind of a broader set of secondary solutions across the different verticals. We have added a credit secondaries business, which we think really plays to the strength that we have in private credit. We have spun up our team and are actively raising capital there something we’re super excited about. We are in the market with our next generation of infrastructure secondaries, which is a big growth area for us.
We are currently in the market with our ninth real estate fund, which was a fund that was ready to launch when we acquired. And we did to your point close out our prior vintage of private equity, and we’ll be coming back into the market at some point with kind of the Ares version of what that strategy is going to be going forward. We’re also excited that we’re able to leverage the momentum we have in the wealth management channel to launch the public markets fund, which is largely anchored by our secondaries capability. We’re seeing good scaling there and we would expect that to continue to grow. So the business has been fully-integrated. I think, we’ve repositioned certain of the strategies into higher growth parts of the market. We’ve opened up growth opportunities in credit and Asia and Infra in a way that didn’t exist prior to the acquisition and now we’re executing.
So we’ll keep everybody abreast of the progress there but a lot to be excited about.
