Tia:
The next question comes from the line of. Please proceed.
Question: Two quick follow-ups here: First, can you provide any commentary if you’re seeing any pressure to the BDCs fee structures, there’s some new entrance coming in, the existing BDCs are much larger than they were a few years ago. So, any commentary on the pressure to the fee structures first.
Glenn:
So, we’re not currently seeing the pressures for fee structures. But I will point out something about this whole fee structure argument. When you have this off-balance sheet, even when you’re successful in having off-balance sheet relationships and effectively a fee reduction, because we’re only taking management fees on the equity of these relationships. So, you’re seeing a number of our peers successfully announce, and hopefully we will at some point, announce unitranche deals and with the unitranche deals as a similar GE, unitranche that Eris has, so Eris only take some management fee on the equity in GE unitranche and if we were to have such a deal, even the camper deal, they only take the fee on that. So the RR Wizor much higher is you start to point those types of assets. There are a number of other things like for example when you’re managing HFG, we’re taking only a fee on the equity in HFG but HFG manages a billion dollars in the UM as we all know. So, not everything since people are so focused on the actual fee line. We’re really focused on the return on equity line and we believe that we’re working on the delivering the appropriate returns of equities to both BDCs.
Todd G. Owens:
The other thing that I just want to reiterate and add is that we’re very excited about FSFR, the investment opportunities there we think are great and that’s one of the lowest good structures in the industry.
Question: Got it, helpful and then just my final follow-up here is can you provide us an update on the two specific businesses; one is the silo business and potential there in the future and also now is probably not the best time in the world to do this, but launching a private BDC? You know it’s something you have the skillset for, so just an update on there too?
Answer: They’re both excellent ideas. Look, we’re working on it with our partners, our distribution partners. The right format for a private BDC bothers me sometimes, about a private BDC is the amount of Cs that they charge and the impact on the investor base and we believe we can do more institutional format. We’re working on it. We’re working out with multiple partners but there’s nothing to talk about yet and as regard to the silo business, look it’s a little bit late than what I would have liked but the good news is the performance of the underlying assets are good and the partners are happy and we’re making progress. So again, we hope on the next call to, we want to have this call as we wouldn’t want much time to elapse before our next call and even though we’re in public during the quarter, we want to communicate on the friggin’ base as with the investors and the analysts. We hope on the next call to talk about traction and the silo business and other institutional businesses.
Alright great guys. Thanks for taking all my questions.
Very well.
