Bahir Manios: Certainly, thanks, Geoff. As has long been probably two of our most enduring and most significant competitive advantages is one, our access to capital and two, our operating approach that allows us to be a great partner to high quality counterparties across different avenues of business and what’s interesting in this past quarter is the partnerships we’ve announced with both Sequoia Heritage and with SocGen are very, very different, but what they both are illustrative of are situations where we can not only bring our significant capital as a capital provider to address a situation, but there are also situations where both partner brings something unique to create a platform that few others can replicate. As I’m sure you can imagine, we’re not going to announce any new JVs here on the call today, but I would say we are increasingly seeing other opportunities like this and we’re going to continue to be selective and look for situations where it’s not just capital that we can bring, but it’s also situations where both partners bring something unique and together the platform is better with two shareholders than with one.
So I would say that the partnerships we have announced are very indicative of things that we will continue to contemplate in the future.
Geoff Kwan: Okay, thanks. And just my second question was back at Investor Day, you talked about using the cash to make investments in LP commitments to the non-flagship, non-Oaktree funds, help seed new funds, but also invest if any of the affiliates were raising new equity. I think it was from the letter to shareholders, you talked about doing the BLP investments and seeding new funds, but you didn’t reference investing in new equity if affiliates are raising capital. Is that still the plan or are you guys not going to be doing that going forward?
Bahir Manios: Morning, Geoff, it’s Bahir. Look, I think what we’re trying to highlight or what we tried to highlight in the letter is just some of the more nearer term initiatives that we have going on. So you’ll probably see us be using our cash much more so to do something strategic on the acquisitions front in addition to standing up new business lines and new strategies. So that’s the focus of the management team for the next little while of how it believes it will put that $3 billion to work.
Operator: Thank you. Our next question comes from the line of S Sohrab Movahedi with BMO Capital Markets. Your line is now open.
Sohrab Movahedi: Okay, thank you. Two questions, maybe I’ll just stick with Bahir. Bahir, I think in the supplemental you’ve given us the breakdown of the $440 billion in fee bearing capital between credit, real estate, the various strategies. You also gave us the sense of how you expect this to kind of grow over the next number of years, I think five at the Investor Day. Can you give us a similar kind of set of numbers, I suppose, by strategy of where your FREs coming from today versus where it would be five years from today based on the numbers you put up for us at the Investor Day?
Bruce Flatt: Morning, Sohrab. At this point, I think it’ll be difficult to do that. We don’t break out the FRE for the various business units for a number of reasons. I could share with you probably offline, I don’t have it on me, what maybe the fee revenue projections will be by business unit and we can go from there, but I don’t have that in front of me today.
Sohrab Movahedi: I appreciate that. Thank you, I’ll follow up. And then I guess just as a second question, I understand the message around fundraising and the outlook for it, not just for the backup of this year, but next year as well. Curious as to how important is return of capital to existing fund bearers as a kind of source of funding future commitments, as you think about, for example, ’24 and beyond. Now, I think you have on page six of the supplemental a bit of a flow as to how the fee bearing capital this year versus this quarter versus last year, this quarter and I think you have inflows, but then you have return of capital and distributions, which are roughly about half of the inflow. So is that if you were going to raise a $100 billion next year, does it entail returning $50 billion or thereabouts from existing funds and so how important is it to actually realize on existing investments?
Connor Teskey: Hi, Sohrab, it’s Connor here. Obviously returning capital to our LP partners around the world is a critical component of our business, but I would say that perhaps three things. One, we are very fortunate that the vast majority of our clients and partners around the world continue to increase their allocations to alternatives regardless of how much capital is being returned and then we’re also very fortunate that the areas where we raise the most capital are very much in favor with investors and it is viewed that the opportunity in these vintages of funds should be very, very attractive. The last point to make is the vast majority of our investment strategies aren’t overly reliant on leveraged loans or leveraged capital markets in order to execute and I would say all of that, it’s always important to return capital to your clients.
That’s a big part of what we do, but I would say that all three of those dynamics have somewhat insulated us from some of the broader concerns in the space, but all that being said, we’ve had a very active period for monetizations thus far year to date and we continue to see that going forward, given that the areas where we are most active, there is still an intense bid for high quality assets. So long way to say returning capital is important, but I would say our franchise and our diversity of fundraising does somewhat insulate us from some of the headwinds that perhaps you’re reading about in the headlines.
Sohrab Movahedi: Okay, thank you for taking my questions.
Operator: Our next question comes from the line of Craig Siegenthaler with Bank of America. Your line is now open.
Craig Siegenthaler: Hey, good morning, everyone. So we have a follow up Alex’s question on the 2024 fundraising backdrop. Do you expect to have an Infra 6 first close next year or do you plan to market it next year and probably have a first close in 2025? And also, are there any large insurance wins that are expected at this point in 2024?
Connor Teskey: Sure, so Craig, perhaps the way we would answer that is we are very fortunate that across a number of our flagship strategies, we are significantly invested. In particular, across the flagship infrastructure strategy we’re approximately 40% deployed at this point. Where does that put us in terms of when we’ll next be back into the market? That will depend on deployment the remainder of this year and early into next. I think it’s probably too early to call what the specific timing of that will be and then in terms of insurance, the key things we’re focused on is obviously our strong affiliate partner, Brookfield Reinsurance is working on closing the two large transactions they’ve announced, Argo and AEL. Argo, we are hopeful will close imminently and AEL continues to make great progress and should hopefully get signed up relatively close to the end of the year. Bahir, anything to add?
