Ryan Lynch: And then just one last question kind of regarding realizations, equity co-investments. Have you €“ I assume the answer to the first part is yes. But have you seen purchase price multiples contract for new M&A deals getting done? And then kind of a subset to that question is if purchase price multiples are tracked, it seems like a fairly decent time to be investing equity. If that’s the case, are you guys pushing harder than normal course to get equity stakes in the company that you guys are investing? I thought you guys made several equity co-investments in your fourth quarter. But is that more of a concerted effort for you all? Or is it just kind of your normal course as far as your guys’ desire to get equity in these businesses?
Ed Ross: Great question. From a purchase price perspective, clearly, multiples have probably come down a little bit. The type of activity that we’re seeing today or a large majority of it are really high-quality businesses, high free cash flow businesses that are less impacted and less susceptible to a weakening economy. And that’s where we’re seeing a majority of the activity is where a majority of our interest is, as you well know. And in those cases, multiples are probably down a little bit but they’re not €“ they haven’t dropped in a huge way by any stretch of the imagination. Having said all that, from a €“ we think right now is a great time to invest. And so we are looking to continue to make equity co-investments.
If you look at the three new transactions that we financed here in Q1 or in subsequent events, all three of those have equity co-investments. So yes, we are continuing to stick with our strategy, investing in the debt, and most of the time the equity of our portfolio companies and highly interested in continuing that approach. So I think it’s a great time to invest. You got to be careful from a debt perspective, if you think about leverage levels are lower, pricing is better, structures are good as good as you’re going to find. So it’s a great time to invest from our perspective.
Ryan Lynch: Okay. That makes sense. I appreciate the time today.
Ed Ross: Absolutely. Good talking to you, Ryan.
Operator: Our next question comes from the line of Mickey Schleien from Ladenburg. Please proceed.
Mickey Schleien: Yes. Good morning, Ed and Shelby.
Ed Ross: Good morning, Mickey.
Mickey Schleien: Hi. I wanted to ask you about some of your second liens. I’m looking at Quest and Suited Connector and in particularly, Virtex market, 54% of costs. These are really distressed valuations. I know there’s a risk-off mentality in terms of second lien, which perhaps provides you with an opportunity. But how large are your second lien companies? And how levered are they? And what sort of cash interest coverage ratios do they have?
Ed Ross: Sure. It’s a great question. I lump our second lien and our Mezzanine portfolios into kind of one category. And so it represents a real piece of our portfolio; first lien is the majority. Those are €“ in most cases those are pretty large companies. I mean you mentioned Quest. Quest is an extremely large company, out of the ordinary from our perspective. So its cash interest coverage is fine today. So the companies for the most part are larger companies, but there’s a couple that have been impacted by the issues in today’s world. One of them has been meaningfully impacted by supply chain issues. And it’s a larger company, but at this point in time, over levered. The other thing I would say, in all the names that you mentioned are companies where there are sponsors involved, and from our perspective, they’re supportive sponsors and the expectation €“ one has put some capital in and we would expect in another case for another sponsor to put capital in another company.
