Jaspreet Dehl: So maybe I can start, and then I’ll pass it on to Anuj to comment on valuation. So look, I think, we’d want to target an IPO at $1 billion or even smaller, I’d say, Gary, the one of the learnings from the process that we undertook in 2021, was just sizing the right level for the market. What we had tried to do last time around, I think, was a bit too large. So, we’re very cognizant of that. And given kind of the strong performance of the business, both EBITDA growth as well as the cash that, we’ve used to paydown debt. We’re in a much better leverage position, and we don’t need to be that large. So, I’d say $750 million to $1 billion should probably, do it from an IPO perspective. And then I’d say kind of more broadly, some of the questions that were raised around the business.
I’d say, the performance of Clarios, has exceeded kind of what we had discussed back then. I think the business has outperformed, pretty much on every metric, whether it’s EBITDA, volume, cash flow generation, there was concern around EV penetration, and the impact on the business. The business has done an exceptional job. We are on over 150 EV platforms today. I think that number was 30 or 40 back when we were trying – when we did the – when we tried to do the IPO in 2021. So, I’d say broadly, across all of the metrics, the business performance has been exceptional. And I think, we’re much, much better positioned today and the business is, in a much better position today. And then I’ll hand it to Anuj to talk to valuation.
Anuj Ranjan: Yes. Thanks, Jaspreet. I think on valuation, first, the markets obviously need to open, and we do expect that to happen ideally in the next – in this year. We won’t give this business away. It’s doing very, very well, as Jaspreet said. The business has fundamentally changed and grown. As Jaspreet indicated, we’re now in a number of EV platforms. And so it’s a different business, we’d be taking to market this year than the last time. And I can say we would look for a fair valuation multiple in the context of what the business is today, and also the market environment at the time.
Gary Ho: Okay. That’s very helpful. And Anuj, while I have you here, it was mentioned in your letter to shareholders the, disconnect in your unit price and how undervalued it is versus peers. But then on the other hand, you talked about the number of high-quality assets, or opportunities that may require financing. So, how should we think about capital allocation priorities over the near term?
Anuj Ranjan: Yes, good question. We always maintain a balanced approach. Focus continues to be on deleveraging our balance sheet today and ensuring we have sufficient liquidity. We did touch on in the letter, the distressed investing landscape. And the opportunities we are seeing, which is our pipeline is very robust. But the bar is high, and we continue to be selective. And in some cases, we even, for example, repurchased shares in the past years. So, I think between further share repurchases, new investments in deleveraging, we’ll continue to maintain that sort of balanced approach.
Gary Ho: Okay. Great. And Jaspreet, if I can just sneak in one more, just a clarification question. In your pro forma liquidity of $1.5 billion, there’s a $900 million adjustment for acquisition and investment. Can you remind me what that is for again?
Jaspreet Dehl: Yes, sure. So a number of the acquisitions that we’ve made over the last year, or 18 months, is because we make them alongside Brookfield’s private equity funds, we fund those acquisitions based on timing of capital calls that, come in from the funds. So, we haven’t funded everything, for the recent acquisitions. So in early January, we received a capital call it included part of our funding for CDK and some of the other more recent acquisitions. So that’s what those adjustments are for.
Gary Ho: Okay. Got it, that’s all.
Jaspreet Dehl: Yes, just to be clear, like it doesn’t change where we – the total amount that we said we’ve invested in CDK, but like that remains the same. It’s just kind of the timing of the actual cash going out.
Gary Ho: Okay. Make sense. Okay. Thanks very much.
Operator: Thank you. One moment please for our next question. Our next question comes from the line of Devin Dodge with BMO Capital Markets.
Devin Dodge: Thanks. I wanted to pick up on one of the earlier questions on capital deployment. So, the letter talked about leveraged loans and high-yielding public debt. Are you starting to see distressed situations, to become more near-term opportunities with active discussions? Or is it more about monitoring the situation? And just — maybe more just probably – where are you seeing – where are you most optimistic about capital deployment over the next six to 12 months?
Anuj Ranjan: Sure. It’s Anuj here. I’ll start with that. Hi Devin. We’ve – today, we’re monitoring, and I’d say that it looks like things might become actionable in the medium term. So, I wouldn’t say that there are immediate opportunities coming out of those businesses that, we’re watching, but things are advancing more so than, they have in the past. And this really is a medium-term opportunity.
