Bahir Manios: Yeah, sure, Connor. Maybe I’ll just, Craig, add just a small remark on insurance. Now that we have the platform that we have, especially in the US with American National and AEL, in addition to a small business that we have in Canada, a business perhaps that we start in the UK, etcetera, we expect to write just day in, day out, or deliver on organic growth of anywhere between $15 billion to $20 billion a year. So without doing any large scale M&A, that could be the level of insurance assets that we get under management each year, just now that we have the platform that we have today.
Craig Siegenthaler: Great, thanks, Bahir. Just as my follow up on M&A, two part question here. When did you change your strategy in terms of using BAM capital for M&A versus another source like BN? And the second point of that is I heard you reference $3 billion of cash. I think if you look at your press release, page five, $3 billion is exactly what you have. So I’m just wondering, what’s the level of base capital you have to leave in the company at all times for working in regulatory capital needs inside of F3?
Bruce Flatt: Sure, Craig. So I would say one of the motivations around the spinout almost a year ago now was to give Brookfield Asset Management a best in class currency to facilitate M&A when it was attractive to do so and looking back with the benefit of hindsight, almost 12 months later, the spinout of the manager into its own segregated entity has been great in terms of seeing opportunities and monitoring opportunities to pursue inorganic growth for the business. And I would say we’ve been relatively active in pursuing and monitoring those opportunities, but being selective at the same time. And then in terms of just the capital and the capital available for growth, we obviously are a highly cash generative business and therefore we do have that capital on our balance sheet to grow our business either through seeding new strategies that we intend to grow ourselves or through strategic M&A, but the reality of it is our business is self-funding.
So I would say that the entirety of that $3 billion of capital is available to us, plus more given the debt capacity within the business should the right opportunity come along.
Operator: Our next question comes from the line of Brian Bedell with Deutsche Bank. Your line is now open.
Brian Bedell: Great. Thanks, good morning folks. Thanks for taking my questions. Maybe the first one on Global Transition II. I think in the shareholder letter you said you’ve already got, I think it’s $1.5 billion committed to deploy in that fund, if you could correct me if that’s correct. And just more broadly speaking, how do you think about the deployment opportunities for transition versus say infrastructure, which is probably your second most rapid deployable large scale flagship fund, just over the long term. And then the investor base that is allocating to transition, do you see that growing significantly in terms of the percentage allocation from LPs dedicating specifically to transition over the long term?
Bruce Flatt: Yeah, certainly. So a bit to unpack there. First and foremost, yes, you are correct. The second vintage of our transition fund has announced two transactions that will act as the first two investments in the seed portfolio for BGTF II. And those transactions do total about $1.5 billion. So all of that correct as you stated. In terms of the environment for transition investing, and I’ll say equivalently the environment for infrastructure investing, it is very, very robust. Right now you are seeing one of the greatest capital needs in memory to build out data centers, to build out renewable power and quite frankly, that is happening at a time where capital is becoming increasingly scarce for some market participants and some developers of those assets.
So that creates a great opportunity for us both on the infrastructure side and on the transition side to be not only a capital provider, but an operating partner to those businesses and I would say on behalf of both our infrastructure and our transition platforms, the market opportunity set today is larger today than it’s ever been before, while at the same time probably being as attractive as it’s been in recent memory. And then lastly, to your last point just around the investor base, as we begin to think about BGTF II, it’s significantly larger this time and I would say there’s really two things that have changed versus our first vintage, which we launched in 2021. I know 2021 is not that long ago, but the world has moved very, very quickly and since 2021, many more institutional investors around the world either have carved out a decarbonization or transition investing bucket, or at least at a minimum firmly decided where that investment strategy sits within their portfolio and therefore they are much more willing and able to allocate capital to these strategies.
The second thing that has happened in call it the last three years, is the market opportunity set for these investments has significantly grown and all investors, regardless of their decarbonization objectives, are simply seeing one of the largest best of all universes at very attractive risk-adjusted returns and that’s driving enhanced capital flows into the space versus what we saw two or three years ago. So I would say on the transition side, not only is the investor spectrum widening, it’s growing in terms of size of commitment as well.
Brian Bedell: That’s super helpful. And then just a follow-up, maybe if you can give us an update on democratized products, retail focused products. We’ve obviously talked a lot about flagships and the very strong fundraising momentum there, but as you think about 2024 and developing these products, I guess just maybe sort of your thought on the timeline given the lag typically of getting them on platforms and also maybe some perspective on the risk appetite right now from the retail perspective.
Bruce Flatt: Certainly. So I would say in terms of growing our retail presence, we’ve spoken about this in the past. We do think it is a significant opportunity for us, but one that we are going to grow and tackle in a very prudent manner and today we have a number of products targeted more at high net worth or retail investors and while those are modest in terms of the scale of our business today, they are growing very rapidly. Our BOT [ph] franchise, Brookfield Oak Tree Wealth Solutions, continues to expand meaningfully and the other one that we would highlight just drawing on the broader strength we’ve seen across infrastructure investing is our BII, Brookfield Infrastructure Income Fund platform has seen significant growth throughout this year and continues to get loaded on new platforms in different regions around the world. So we would expect that platform to continue to accelerate and probably really hit its stride in 2024.
Operator: Thank you. Our next question comes from the line of Ken Worthington with JP Morgan. Your line is now open.
Ken Worthington: Hi, still good morning. Thanks for taking the question. In the letter this quarter, you commented that peaking interest rates bode well for transaction activity. Are there geographies or asset classes that you expect more robust activity levels as we look to 2024? And I assume that this means a better investing environment, but are there also parts of your business where you expect to see better realization opportunities as well?
