And so it’s unlikely they would sell. So I think the opportunity to expand is limited. It’s not to say that’s not possible at some point in the future. But I think most of the growth going forward is likely organic.
Operator: Our next question comes from the line of Robert Hope with Scotiabank.
Robert Hope: I want to circle back on the asset divestitures. Can you maybe just add a little bit of color of what the environment is right now, where we are in these processes? Are we in price discovery? And have we seen kind of any change in the expected valuations of these divestments, just…
Samuel Pollock: Robert, I would say — I’ll make a couple of comments. First, we have transactions at all phases of a transaction light, so some that are more advanced than some that are early stage. So — and we are active participants on both the buy side and sell side. So I’d say our views on valuation stay of the market are probably pretty good. The I think the — I think my comments generally would be on valuations for the most part, they’ve been steady and haven’t changed meaningfully over the last year or so even with rising rates. There are some businesses that to the extent that people use higher leverage to buy them, they’re probably the most impacted because obviously, that cost of debt has gone up. But many of our infrastructure assets are not financed at high levels.
And so the impact of leverage is more modest. Probably the biggest thing that’s changed in the market over the last year has just been the number of participants is probably a little less than what would have been. And that’s really not so much from an infrastructure manager or a strategic perspective because I think those groups have a lot of dry powder and are still pretty active. But we have seen some pension funds and Starwall funds, pull back a bit with some of the drop in equity prices and that impacting they’re waiting in their portfolio. So the denominator effect that people refer to is probably was prevalent maybe in the latter half of last year. Now — having said all that, I think as the new year has started up, we’ve definitely seen a change in tone.
And so I think while maybe not to the levels we would have seen at the beginning of last year, there’s definitely more activity in the market. And what is different, I think, with infrastructure than some of the other asset classes is because the credit markets are much more important for private equity interest and real estate. There definitely was a decline in activities in those sectors, but we did not see that to the same extent in infrastructure. Infrastructure is still highly sought after and particularly in periods of volatility, it’s an area that people want to invest in. So long story short, valuations are still good. Everyone has different views of value. So I think our views of what we think assets are worth are very reasonable. And so they have not changed much.
There might be other people had elevated views of value, but for us, it hasn’t changed much. And the market is still very strong and supportive for infrastructure as a whole
Robert Hope: Great. Appreciate that fulsome answer. Maybe going back to your 2022 Investor Day and the outlook for 12% to 15% FFO per unit growth, just taking a look at the environment and taking a look at the headwinds and tailwinds, what are you seeing in terms of kind of pushing it one way or another? It does seem like the commodity-exposed business is maybe a little bit — continue to be quite strong there.
