Adam Beatty: That makes sense. Appreciate it. And then if I could, just maybe one more for — maybe for Joe. Thinking about CNS REIT and going into kind of the wealth channel, whether it’s RIAs or wirehouses or whatever. It’s likely a compelling product. Obviously, your long-term track record is very good, but it’s also a crowded market, right, in wealth. So, just wondering how you’re pitching the differentiation of the product maybe to some of those gatekeepers? Thanks.
Joe Harvey: Yes. That’s a great question. It’s getting more crowded. But the aspirations, as I’m sure you know, of the wealth firms are to drive allocations to alternatives and private strategies to much higher levels. They’re in the 3% range today as some of the targets are in the 20% to 25% range. I think those are very optimistic, but that’s the way they talk about it. In terms of differentiating it’s going to fall along kind of our history of educating and delivering investment performance. I talked about how we’ve been waiting to start to deploy capital. We’ve had seed capital arranged for some time, but we’ve been sitting on it because we’re waiting for the cycle to come to us. And we think is critical for us, particularly as a first timer in the private market to nail it investment-wise.
So, we’re solely focused on that. And that — one of the requirements to get on the wirehouse platforms is you need to be able to show a portfolio. So, until this week, we haven’t been able to do that. But now it’s one acquisition, and hopefully, we’ll begin to supplement that with other properties. We’ll be able to show the gatekeepers how our strategy is unique and different. So, to that, we — we’ve tried to identify some property types that we believe are mispriced and are different than what other non-traded REITs have. We also are going to use the listed markets in a different way to make it more about an alpha source rather than a liquidity source. And then we’re going to package it with this asset allocation advice through our portfolio optimization tool and our real estate strategies.
So, when you line that up with what the wealth firms are trying to do, we think it’s really important to be able to help their advisers build better portfolios and our view that includes using both listed and private capabilities. Not all of the private equity firms that are trying to build wealth businesses are going to do that. They’re going to talk about private alone. That’s it. So, we’re going to go to the playbook that’s worked well for us over 35 years.
Adam Beatty: Got it. Sounds good. That’s all for me. Thank you, very much.
Operator: [Operator Instructions] Our next question comes from John Dunn from Evercore ISI. Please go ahead. Your line is open.
John Dunn: Hi. Thanks, again. Just given where it seems to be a more constructive market. Is it — is there any chance that over maybe the next couple of years, there could be some loosening of the closed-end fund window?
Matt Stadler: If you follow the interest rate cycle through to its historical conclusions, there should be. Our view has been that rates will kind of be higher than what we’ve experienced for the past 10 years. So that will make things a little more difficult in the closed-end fund market because you need to be able to generate positive spread on your cost of debt capital. But it’s not something that we think is going to happen anytime soon. Before that window closed the past couple of years, we had some ideas in the R&D front, but it’s not something that we’re planning for, for the next couple of years.
John Dunn: Okay. Great. And then maybe just one more for me. For the institutional advisory channel, can you maybe do a quick wrap around of how demand levels are for by client type and then by geography?
Matt Stadler: Well, maybe I’ll start with our one unfunded pipeline, which is really interesting. I didn’t mention this, but we have $1.2 billion in that pipeline. I articulated what strategies are represented. But we have eight countries of domicile representing that pipeline. So it includes Australia, Germany, Taiwan, Philippines, Korea, a country in the Middle East and Canada. I think that’s the most international pipeline that we’ve ever had, and it goes back to the comments that they make on calls for the past year of how we see interest in listed real assets expanding around the world. Several years ago, it happened in the Middle East. Now we’re seeing it in Asia. And so these processes can take a long time, but we’re — that’s why we continue to add some resources on the institutional relationship management front in our other offices.
John Dunn: Thanks very much.
Operator: We have no further questions in queue. I would like to turn the call back over to Joe Harvey for closing remarks.
Joe Harvey: Great. Julianne, thank you for moderating and everyone, thanks for listening, and we look forward to talking to you in April on our progress in the first quarter.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
