Robert Morse: Hi, there. Thanks for the question. And we share your view of the four horsemen. We’re hoping that they can be nice, big, sturdy Clydesdales so that’ll be bringing the kegs to town, as we go through the year. I think that in the past and going forward, we’ve always tried to marry capital raising with what the size of the opportunity is in front of us so that we can effectively raise and deploy capital in our strategies. And in the past, we’ve been disciplined in limiting fund size in order to marry that deployment opportunity and selectivity with capital raise. We’re going to continue to do that going forward. Having said that, it’s been our experience that as our – as we invest in our teams, as they grow, as the – as markets evolve, that we’ve found more opportunity.
I’ll use Multifamily as an analogy for what are a number of different market segments at this point, we used to have only a generalized Multifamily investment vehicle. Now we have market rate Multifamily, which is for the most part Class B value add, as well as Workforce. And in both of those areas, there’s some – there’s, we think, some pretty significant opportunity. Asset values go up and down and transaction activity goes up and down, but the overall size of the Multifamily market as that example writ large is pretty significant and there’s ways to expand that market. So we think we do have the potential to effectively raise and deploy more capital looking forward than we did looking backward. It’s a similar story with different parameters around it in Logistics as an example.
We think, we hope, we’re just getting started in Logistics. And our – the team that we’ve stood up now numbers somewhere between 35 and 40 people. We are actively deploying capital in our Logistics Value-add Fund II. We are actively deploying capital in some build to core activities around that vertical as well, and we think that Logistics – when you look at Logistics as a – from a size perspective, the overall market is as big as the Multifamily market, to be sure. But our participation is much, much smaller at this point. So there should be a great deal of growth there. When you look at Secondaries, the Secondaries market has been growing really strongly. And we think that from an industry structure perspective, Secondaries, not only are here to stay, but are going to become an increasingly important strategic part of the overall alt universe, allowing both GPs and LPs to manage liquidity, et cetera.
So we think that there’s a lot of room to grow there. And I could go on and on about our different verticals. One of the factors that’s pretty fundamental to us when we try to curate where we participate, where we don’t, is what the future growth prospects are, what the potential for growth is, what the potential for related diversification is, building on what we strongly believe are differentiated capabilities in what we’re doing and how those capabilities might be applied in related ways to expand the markets that we do. So we think that we have some pretty attractive growth drivers in place that hopefully as we, at least from our perspective, see this as a at or near the cyclical bottom will be amplified going forward, both through the cyclical upturn, but also because of the secular growth of the underlying verticals.
Adam Beatty: Excellent. Thank you for piecing those out. And then just a question on the wealth management channel. One of the aspects of that channel that’s gotten some attention at your peers recently has been sort of liquidity features for individual investors. So maybe you could talk a little bit about, overall, in your wealth effort, what those liquidity features look like, and in particular for the new product that you’re bringing to market. Thank you.
Robert Morse: Sure. That’s a really good and appropriate question because there’s always the concern that you have a vehicle that offers liquidity and then underlying assets that are less liquid than potentially the capital. I think we’ve structured well around that. We have defined characteristics of liquidity that will help to guide investors in understanding what their options are. It’s really early in the capital raise for this vehicle. We did, over the course of the last couple of years, create a very strong seed portfolio. That seed portfolio, the investors who helped to fund that seed portfolio also do have liquidity – around their investment. The seed portfolio has been performing so well that we – I don’t think we’ve had a – if we’ve had any requests for liquidity, they’ve been de minimis.
I don’t want to say zero, but nothing that has risen to any level of importance in that respect. We invest in discreet investments that are relatively small individually, but aggregate to meaningful scale. So that enhances liquidity as well. Were there to be requests for liquidity, what we’ve invested in we think is highly marketable and to meet those liquidity requests. And we do have defined parameters around how much liquidity investors can expect that are relatively consistent with what other so-called retail democratized vehicles have in the marketplace as well.
Adam Beatty: Excellent. Thank you. Just very specifically, is there an initial lockup period for investors?
Robert Morse: I believe there is. I’m not – it might be one year. It might be a little bit more than one year. I’m not sure. We can come back to you on that.
Adam Beatty: Okay. No sweat. Thank you very much. Appreciate it.
Robert Morse: Thank you. Thanks for the questions.
Operator: Thank you. Ladies and gentlemen, this concludes our Q&A session and thus concludes our call today. We thank you for your interest and participation. You may now disconnect your lines.
