Operator: Our next question comes from the line of Ryan Lynch from KBW. Please proceed.
Ryan Lynch: Hey good morning. First question I had, just following up on kind of that previous dialogue regarding competition. Certainly, I understand that there’s always competition out there. I would just be curious €“ there’s been a big pullback in competition in kind of the upper middle market with banks and CLOs you’re treating. I would just love to hear €“ has to level out €“ again, you mentioned there’s still competition in the markets you guys play. Has that competition pulled back significantly? Over the last couple of quarters has in some markets, capital has gotten a little more tighter? Or has it been pretty consistent?
Ed Ross: No. No, it’s pulled back dramatically from, call it, 12 months ago. And we compete with a variety of entities, if you will. So fairly BDCs, the BDCs that have liquidity are still active. And so there’s competition there. Finance companies, more CLO financed, if you will, which are a major player in our market. They have become much less aggressive. I think there are a couple of €“ one CLO issuances aren’t exactly flying off the shelves these days. The liquidity is probably tighter. I think portfolio management is more of a focus. And so when they are playing, they’re playing in a smaller way, generally speaking, that group. And we’ve seen a pretty big pullback from banks as well. So no, the level of competition is definitely different and less relative to a year ago. Having said all that, there’s still participants that are active and there’s still competition on deals, to say the least. Hopefully that’s helpful?
Ryan Lynch: Yes. That’s helpful clarification. The last couple of years, you guys have had some significant realized gains in your portfolio, which is not unexpected given where interest rates were and the amount of capital flowing around the system. I see in the fourth quarter, which one quarter doesn’t make a trend by any stretch, I understand that, but realized gains sort of kind of dropped off. What is your expectation for realized gains and just the ability of companies to transact in 2023, which is, I think, going to be one of the main drivers that you could exit some of these positions? What do you think that, that looks like given where rates are today and kind of people not really wanting to refinance and do M&A to the same extent we’ve seen in the past?
Ed Ross: Sure. Sure. It’s a great question. From our perspective, the level of activity in 2021 was extremely robust. Obviously, we did well there. We did well late in 2020. And then also 2022 was a great year for us from a realized capital gain perspective. This year, I would expect incremental gains. I mean we have a pretty mature equity portfolio. And so more than a few companies that are right for realization. Having said that, there are quite a €“ and we don’t control these situations, as you well know. And so a lot of private equity groups have been taking a wait-and-see approach and seeing what’s the best time to transact and we’ll financing markets improve, for instance, it will maybe create higher valuations and €“ so there’s €“ it’s unclear exactly what level this year realizations or equity realizations will take place.
But we think they’ll €“ it will continue just at a more modest pace at the end of the day. Our expectation is to have one realization here in March, if that deal closes, which there’s a good chance of it closing. So €“ but again, it’s €“ the number will be lower is our expectation. That’s in line with just overall market activity.
