Newbury very quickly distinguished itself. We met with, if not dozens, probably at least a dozen or so different secondaries firms. And in those meetings, we learned a lot about the sector. And the Newbury team and the individuals who manage Newbury, Richard, Chris, Warren, Gerry, the full team, they distinguish themselves very quickly as a quality team that had the same philosophy and focus that we felt had underpinned a lot of Bridge success in the past. And so we were delighted that we could construct a win-win transaction for them and for us.
Operator: Our next question is coming from the line of Michael Cyprys with Morgan Stanley.
Michael Cyprys: Just wanted to circle back on the Bridge results and expenses and margin. I was hoping you might be able to elaborate on the expense outlook, on comp and noncomp expense here in ’23 as well as the FRE margin outlook here in ’23.
Robert Morse: So I’ll make some early comments and then ask Katie to comment as well if I miss anything. We said in our prepared remarks that we were disciplined on expenses in the fourth quarter in light of reduced transaction activity. And we think we run, Michael, a pretty lean ship. We have tried to manage headcount appropriately, allocating headcount to those areas that are growing. A lot of the expense growth you saw in 2022 was to fund some of those growth opportunities, whether it be in logistics or net lease or solar or PropTech, all those newly launched initiatives are doing well, growing well, attracting capital, delivering results, finding good assets to acquire, et cetera. And many of those investments, expenses are completed at this point.
We continue to have a need to manage our business well and to continue to grow headcount. The headcount growth should be more modest in 2023, borrowing some other strategic initiative that we see. And we’re, of course, conscious of delivering good margins and good bottom line profitability to our investors. Katie, anything to add there?
Katherine Elsnab: I think the only thing that I would just emphasize as well is just the importance of looking at our margins on a long-term basis, that quarter-over-quarter, we do have volatility as it relates to transactions that occurred during the quarter. And so that’s one thing. It’s just to focus on looking at our margins on a long-term basis.
Operator: There are no further questions at this time. I’d now like to hand the call back over to management for any closing comments.
Robert Morse: Thank you, operator, and thank you to all who joined us today. We are delighted to complete the review of 2022, fourth quarter and 2022. We’re delighted to announce the Newbury transaction. We know we have a great deal of opportunity looking forward in 2023. We think we’re well positioned to capture a meaningful amount of that opportunity, and we look forward to future dialogue as we progress through the year. Thanks so much.
Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day.
