Christopher Donahue: And the private markets part of that $1.9 billion is about half. And a bunch of the other is direct lending and unconstrained credit, and that comes in faster. And maybe Saker has a timing on that that would be more illuminating.
Saker Nusseibeh: So the difference — thank you, Chris, the difference is things like direct lending and so on, we’d expect to come in within two quarters normally, if it’s been committed. And we — as soon as we have it in, we start drawing it down and investing. And that is different, as you’ve heard from things like private equity, whether it’s Horizon or private equity growth, which is a longer time horizon. When we do, and we haven’t announced any at this stage, when we do large real estate deals, fun enough that does tend to take about a year as well. So that’s the best guidance that I can give at this stage. But direct lending is certainly quite fast and so is a good straight lending.
Daniel Fannon: And the average fee rate of that backlog roughly?
Christopher Donahue: It varies. Go ahead. Go ahead, Saker.
Saker Nusseibeh: No, no, I was going to exactly the same. So it varies on the strategy, and it’s very hard to give — and I know you guys like guidance and so on. But it is very hard to give because it varies on the strategy. The private equity strategy where we pick up private equity with the base fee and then a percentage of the performance fees, for example, other strategies would have different kinds of structures, performance fees and different kind of base fees. So I’m afraid, because our alternative or private market business is still very it’s very difficult to give a singular number like you do for equities or fixed income. It just depends from strategy to strategy.
Daniel Fannon: Okay. And then just as a quick follow-up, Tom, the ad campaign that drove 4Q a bit higher. Is that an ongoing or what’s a reasonable run rate for ad spend in 2024?
Thomas Donahue: Dan. I’d look at the whole year of 2023 as the guidance, and then I expect we’re going to do more than 2023, but I would use Q4 as a run rate. I take the whole 2023 and divide it up and when exactly we’re going to run the campaigns we’re still working on. But I’d add a little bit to 2023s number.
Daniel Fannon: Great. Thank you.
Operator: Your next question is coming from Brian Bedell with Deutsche Bank.
Brian Bedell: Great. Thanks good morning folks. Thanks for all the answers to these questions. It’s pretty interesting. A couple expansions from prior comments. So maybe Debbie will start with the money market fund side. Just again, a great color on the dynamics there. But do you have a sense of what the addressable market might be for Federated inflows into money market funds coming from things like T-bills. And should we be thinking of the — in 2019 into 2020 as a general proxy for that? Or do you think the addressable market is larger now and we could see better inflows?
Deborah Cunningham: I think on a percentage basis, using the 2016 to 2019 time frame and the experience there is probably a good one. Obviously, that goes up with the markets increase. But on a percentage basis, sort of in the high teens, I think that’s probably something that we’re expecting, let’s say.
Brian Bedell: Okay. Okay. That’s helpful. And then just back on the private markets, triangulating some answers back to Chris’ first answer and Saker’s, a couple of answers on this. In terms of — just if you think about infrastructure and energy transition, and I know you obviously have the infrastructure fund and the U.K. nature-based fund as well. But the market for these particular assets are growing very substantially, and you’ve got a great brand name and good track record. I guess what’s your view on really scaling that up is kind of dramatically more than you are now? Is it a capacity constraint? Do you need to acquire more teams — or do you feel like you have the infrastructure in place and it’s something that you can really start launching funds on and going after that market more dramatically?
Christopher Donahue: I’ll take a swing at the pitch first and then Saker will follow up. When we originally bought the Hermes enterprise, there was a lot of work that needed to be done in order to gain proper control of all of those private market entities and all the structures. The next thing that needed to be done was we needed to make it a viable open market type operation. Generally, in the old days, it was a single client. And if the client called, you answered the question. And it wasn’t a platform for doing things. So over the last couple of years, we have been working on those two things that had to get right. And we’re still working on some of the things on the infrastructure in particular on those subjects. So there’s internal things that have to happen.
The next thing that happens, as I say, we’re in the market, its repeat the sounding joy of sales — and we had a great sales conference in London in person. Last week, we have our global sales conference coming up next week coming out of Pittsburgh. It will be virtual. But the point is that it’s now time for the sales to take over and play core [ph] in the marketplace. And I’ll let Saker make some comments as well.
Saker Nusseibeh: Thank you, Chris. So to add to what Chris just said, we were doing some work, particularly on the infrastructure side, which we hope to finish and we’re in the marketplace. Nature is a new endeavor where we are seen as very much the innovators, and we’re hoping for more sales with that. Now what I would say in general about the old Hermes franchise is as follows, which is everything we did because we thought we could enhance returns not just because it was trendy or it was the theme of the moment. And that is true of the transition. So we are very much involved in looking at ways that we could invest in the whole theme of energy transition across the board in various ways and in various strategies, not just private markets and benefit our clients in the process.
The difference is when we do something, we do it right, we kind of go fast slow if that makes sense to you in this sense, which is we make sure that we’re in the right place. And going back to something that Chris said right at the beginning of the call, I think what differentiates us as an enterprise from others, not everybody, but I think it’s a differentiator is that the way that we approach whether it’s integrating ESG for risk return profile, whether it’s thinking about thematic funds, whether it’s launching the nature fund that we’ve launched, we do so thoughtfully, and I think with stronger foundations because we believe the strong foundations will bring the rewards and the sales will happen. And this is the time when we hope to start rewarding single awards.
