Marc Ganzi: As always, Michael, good question. It’s very thoughtful. Let’s try to take the second one first because it’s top of mind. Our business plans in 2023 are not predicated on higher pricing to customers. Let me repeat that. We are not predicating our growth results on just making our customers pay more. That’s a bad playbook. Had I run that playbook in ’02 and ’03 and ’09 and ’10, when the markets turn and get good, customers don’t come back to you. So we tend to be very pragmatic about how we price. We don’t want to gouge. We certainly don’t want to be someone who shapes the price and then the customer gets angry, and when their capital structure recovers and they’ve got more liquidity and their CapEx spending accelerates, we get left behind.
I’ve watched other publicly-traded digital infrastructure companies do that. and they’ll admit, they won’t admit it today. But back then, they would have admitted, they suffered for it. So we’ve learned from that past, right? And you’ve got to always look at the past and look at these down cycles, and this is where you pick customers up. You don’t step on them. And I’m very clear about this with all of our 27 CEOs. There’s a right way to behave. There’s a right way to treat your customers. And there’s a reason why we had incredible growth in the dot-com crash and the mortgage crisis because we knew how to play those cycles. We’re doing the same thing today. We’re putting customers first. We’re taking care of them and the growth rates will follow.
Yes, we have moved up pricing. I don’t want you to walk away from the conversation saying, we haven’t moved Towers rents up. We haven’t moved data center routes up. Fiber rents actually have stayed pretty static and small cell pricing has stayed pretty static. But in Towers and in data centers and select verticals and select markets where we have a unique permitting position or we have a unique power position, Michael, we are pricing that space accordingly as one would expect. So I do see good growth in ’23. It won’t be as good as the growth was in ’22. Looking at the January leasing results from all the portfolio companies, I’d say we’re on plan, mostly a little bit slightly ahead of plan, but you can’t read much, Michael, in the first quarter.
I think the fun conversation we’re going to have is over the summer, checking in with us at the sort of half pole, right, halfway through the race, where are we? I think when we’re out at your conference in Boulder or some of the other summer conferences, it will be interesting to check in then and figure out where are we against plan? How is leasing? Where are rates? Where is CapEx spending? Those are all things that we’re going to monitor pretty closely. And the good news is I get to talk to you 4 times in a year like this, and so I’m always pretty transparent with you, and I’ll share with you what I’m hearing. Does that make sense?
Michael Elias: Absolutely. Appreciate those comments. And then just any color on geographies where you’re focused on deploying the capital.
Marc Ganzi: Yes, yes. So look, I mean, we’re always shifting a little bit, right? There was — if you look at DigitalBridge Partners 1 and DigitalBridge Partners 2, DigitalBridge Partners 1, we put 20% of the fund in the LatAm. We put about 40% to 45% in Europe and about 30% to 35% in the U.S. Then that shifted in Fund II. We decided to go — we sort of took risk off in Europe, put about 30% to 35% there. We moved up in the U.S. and Canada to close to 42%, 43%. We did very little in Latin America, about 5%, then we did 20% in Asia. So Asia was a big part of our strategy in DigitalBridge Partners 2. I think for this year, from an allocation perspective, as I highlighted on the call today, I like what we’re seeing in Asia. There’s some technicals there that we like.
