And because we have these amendments and discussions, those are opportunities and events where we can try and de-risk our loan.
Robert Dodd: I appreciate that. Thank you.
Operator: Thank you. [Operator Instructions] Our next question today comes from the line of Ryan Lynch from KBW. Please go ahead, Ryan. Your line is now open.
Ryan Lynch: Hey, good morning. First question, I had is in your comments here, you talked about conducting a thorough review of your entire portfolio every quarter to kind of stay ahead of any potential issues. I would just love to get some more details on what that portfolio review sort of entails from your end.
Phil Tseng: Yes, thanks for the question. So what entails, first of all, we – our investment teams, as you know, are organized along industry number of industries that they specialize in. So we view our monitoring as not quarterly, necessarily, quarterly is just a formal, review process, but our monitoring is ongoing, continuous and continued vigilance over events that are going on in industries that our borrowers are in, the borrowers themselves, competitors, and so on. And that’s one of the real benefits of having that approach. So we’re always monitoring our portfolios closely. The quarterly portfolio review that includes discussions with management teams, discussions with stakeholders including the equity or other lenders as well really assessing the financial performance of the business using their financial reporting materials and also assessing what’s going on in the broader industry context and putting that together in a formal memorandum for our investment committee to review.
And we do that across our entire portfolio. And one of the benefits it gives us is it gives us a lot of fanatic views. It gives, it allows us to put certain deals and borrowers into the broader industry context. We also are able to leverage the benefit of the broader BlackRock platform in terms of information. It’s helpful for us not just to monitor and a vacuum, our portfolio companies and maybe the middle market, private debt universe, but also the traded markets and the equity markets and we pull on resources from across the BlackRock platform to really make sure we’re informed across the entire industry where our borrowers operate in.
Ryan Lynch: Okay. That’s helpful and good color on that. Following up on one of Robert’s questions regarding the dividend, I understand that’s a board decision, but Raj, you’re the Chairman of the Board, so I’d love to hear what is either your opinion or the board’s, if you can speak for the board’s opinion on what is the hesitancy for increasing the dividend closer to, what kind of the core earnings power of TCPCs businesses today, given where current base rates are, and then if base rates end up changing and going down, which they will obviously at some point reducing the dividend to match the current environment of base rates, what’s the hesitancy to kind of not pay out the, near close to the earnings power of the business and then adjust it depending on what base rates do over, long periods of time?
Raj Vig: That’s a good question. I – maybe that is an ultimate question. And I guess what I would say is it is, I wouldn’t call it a hesitancy. Our intent and our desire is to reward shareholders as much as possible in efficient and, but also manner that maintains, their confidence in us. Part of that is the answer to your question, which is keep in mind, these earnings have moved positively and in some cases very quickly, and we’re talking about a 30% year-over-year increase in our NII that will, that pace is certainly ahead of our deliberate approach to, we wouldn’t just match it at that pace. And then at an elevated risk of taking it down, because I do believe the volatility in doing that, even though logically it sounds like, like, easy to just match the run rate or the earnings power.
