Mike Brown: Okay. Great. And then just changing gears to credit. So, we saw that there was $6 billion of outflows from the credit and solutions business. Can you just touch on those key drivers? And then when you €“ as you talked about the private credit opportunity, clearly BAM strengths and Globality certainly put you in a good position to continue to benefit from secular growth there. But as you look across the platform, is there any areas where you see opportunities, whitespace opportunities to continue to invest? And is there any potential for inorganic growth to kind of help you continue to take advantage of that secular growth?
Connor Teskey: Sure. So, a couple of things to unpack there. When it comes to the outflows on the credit and insurance solutions side those were largely in our public securities, and some of our more liquid credit strategies, and is not unusual to see outflows when there is market downdraft like we saw in Q4. What I would say is we are already beginning to see a bounce back in that activity. And given Oaktree’s preeminent position in that market, they usually are the beneficiary of seeing those inflows come back faster than anyone else. As Bahir mentioned, over 80% of our capital is in perpetual or long-term committed funds. So, this isn’t a particularly material part of our business. When it comes to the private credit opportunity, obviously, for our businesses such as Oaktree or our BSI product within our private equity platform, they can really look to replace some of the void that is existing in leverage loan markets.
That perhaps is obvious. What might not be obvious, which is a very big market for us on the credit side is, we do essentially see almost every major transaction across the spaces of real estate infrastructure, renewables and transition. And in some of those cases, we aren’t the winning bidder. But even if we can’t be the winning bidder on the equity side, we know the asset well, we know the process, we were engaged in it, and we can be a credit provider to the eventual buyer, given our knowledge of the underlying asset. And I do think that’s where the benefits of the broader Brookfield ecosystem will play out, as we will be able to be large investors in credit amongst the real asset space, where we are traditionally known as an equity investor.
Bahir Manios: And Mike, it’s Bahir and maybe if I can just add to Connor’s comments. As our insurance business continues to scale further, that’s going to be a big contributor to the growth of the liquid credit strategies going forward, because approximately 25%, or a third of our total assets that we manage, for the insurance business, get deployed in those liquid strategy. That’s quite a meaningful number today, and that will only continue to get bigger in the future as we continue to scale our insurance business. Hope that helps.
Mike Brown: Yes. Very helpful. Thank you for taking my questions.
Operator: Thank you. And our next question comes from the line of Mario Saric with Scotiabank.
Mario Saric: Hi. Good morning. In the market, there has been a lot of focus on the high net worth retail channel these days. I understand your exposure is quite low today in relation to your peers. And it was interesting to hear the net positive flows into your BREIT, which is contrary to what we are seeing most of your peers. Can you just remind us how much of your $418 billion of fee-bearing capital would entail kind of retail product today? And where that figure is projected to grow in your 5-year forecast kind of said at your Investor Day?
Bruce Flatt: Sure. So, perhaps, well, Bahir gets the number on just the breakdown of the fee-bearing capital that’s in REIT, the high net worth channel. A couple of comments, Mario, just given you asked the question. It’s important to note that not only did we see inflows into our private wealth channel, on real estate, our non-traded REIT in Q4, we also saw it in January as well. And I think the point to highlight there is specifically because of the structure of these products, and because of who the end client was, we wanted to be very, very thoughtful and very careful in not only how we presented the product to the market, but the rate at which we have scaled it. And we are proud of what we have done to this point. We think it gives us a great platform to continue to grow going forward.
The other point that we think important to highlight is it’s not just real estate we did launch a BII, which is our Brookfield Infrastructure Income Fund, which is a very similar product to a non-traded REIT, but instead, focused on the infrastructure asset class. And given our leadership in the sector, we do think that this could be a very large strategy for us over time, and one where we can show considerable leadership. As it pertains to the exact breakdown of the fee-bearing capital, Bahir, I will turn it to you.
Bahir Manios: Thanks Connor. Yes. So, Mario, it’s a bit less than $3 billion, and that’s predominantly in our non-traded REIT. In addition to a strategic credit fund that we also sell through that channel that that is sponsored by Oaktree, that channel does also provide assistance selling some of our long-term private funds. But with respect €“ so they are quite busy doing a whole bunch of things for the franchise. But with respect to the retail, semi-liquid products, it’s in that range of about $2 billion to $3 billion. And as Connor noted in his remarks, we got our first contribution from our infrastructure equity strategy. So, we are excited by that. And we are off to a great start. And I think that is going to be a great strategy going forward.
Mario Saric: Got it. Okay. And then just perhaps, you have laid out some very impressive 5-year growth targets to capital and fee-related earnings going forward. How much of that, I can’t recall how much of that would be comprised of the expected growth in this channel going forward?
Bahir Manios: Hi, Mario. Yes. So, it’s Bahir again. So, we do expect this channel to be a larger contributor to our fundraising initiatives over the next 5 years than what it is today. But in the context of our overall, I think at our Investor Day, we set out a plan to grow our fee-bearing capital to almost a $1 trillion in the next 5 years. And in the context of that number, the retail products, while getting larger, will be a very small component to that overall plan.
Mario Saric: It makes sense. Okay. And my second question just relates to the successor BGTF fund. If we go back over time, and when we look at gifts, best rep, BCP. Number two fund, as always been at least twice as large as the number one fund. Now granted, BGTF is much bigger than the inaugural funds across the other platforms that I highlighted. But I am not asking for kind of specific numbers. But given the acquisition environment, the amount of appetite with LPs, is it fair to say that the successor fund could be kind of your largest fund to-date, including the existing infrastructure that’s in fundraising today?
Bruce Flatt: Sure, Mario. So, perhaps we will answer that two ways. One, there is, without question, we think the opportunity for the next BGTF fund to be meaningfully larger than the initial fund. There is no question and that would certainly be our ambition. And then secondly, we do think transition does have a number of the attributes similar to our infrastructure product that does lend it to being one of the largest strategies that we can offer to our clients. Just simply the scope of investment that is needed across both the infrastructure space as well as the transition space, they do really lend themselves to very large investments and therefore very large funds. So, we do see a lot of similarities in the potential of those two platforms.
Mario Saric: Okay. Those were my two. Thank you.
Bruce Flatt: Thank you.
Operator: Thank you. And our next question comes from the line of Sohrab Movahedi with BMO Capital Markets.
Sohrab Movahedi: Thank you. Two quickies hopefully here. One for Bahir, you mentioned the margin at around I think 58% benefiting from scale. Why would it not continue to grind higher from here?
Bahir Manios: Hi Sohrab. So, look, we are very pleased with our margins. They increased by €“ as I noted in my remarks by 200 basis points compared to the prior year. I think we have been investing a lot in our growth in prior years. So, we have come a long way and that’s why you are seeing our margins tick up. And we are still guiding to that our targets that we have laid out before of 60% margins on the Brookfield’s managed funds, lower-30s in Oaktree. And we would expect over time those margins to continue to go up, but we are constantly investing in the business and adding resources. And I would say just to be conservative, we would guide you to the numbers that €“ or the range that we have continued to give over the past little while. And we think at that range of 58% or so, it’s a pretty good assumption going forward.
Sohrab Movahedi: Okay. That’s very helpful. And then just Connor, lots of talk about the plans for fundraising in the coming year, which is excellent. How important though, is it to monetize? In other words, what I am trying to understand is, is there net new dollars that funders are allocating, or are they essentially waiting for monetization proceeds to then reality to the alternative space? Thank you.
Connor Teskey: Certainly, in €“ perhaps the context to answer that question is from the Brookfield’s context, which is the nature of the continued scaling of the funds that we are offering to our clients is, we have been attracting net new dollars for a decade now, because each of our flagship funds keeps continuing to scale across all our strategies on a meaningful basis. So, the dollars that we are monetizing are greatly outsized by the dollars that we are attracting. Monetizations are very important to our business. We remain focused on them. We remain focused on delivering that full cycle value to our clients. But I would say our ambitions and our expectations around fundraising both next year and beyond, are not highly predicated on specific monetizations in order to unlock that upside.
Sohrab Movahedi: Thank you.
