Question: Okay great then lastly on accounting, you’re backing out the cost of FSC offering costs. What’s the rationale here and what is the FSAM philosophy about what cost kind of gets included and excluded as we look forward?
Answer: Hi this is Alex. Our general philosophy is that there was one time non-recurring items and our expectation is we generally are not gonna be doing or paying for those kinds of costs in the future so as a matter of consistency when comparing periods, we think it’s appropriate to exclude that.
Question: Is FSG gonna be in the market somewhat regularly raising equity now? Right but we don’t intend as a general matter that the national company is going to pay for the cost of that.
Answer: (inaudible)
Alyna Ken Worrington:
Got you okay! Perfect, good, glad to ask. Thank you very much.
Tia:
The next question comes from the line of (inaudible), please proceed.
Question: Thanks guys, good morning. So first is you’ve just given a positive response to the level of attracting lending opportunities now comes the question: can you comment on your willingness to lever up both BDCs especially because they’re you know, they are quite under-levered today?
Answer: Look, this is the time to use leverage and the reason I say that is because you’re finally getting the right pricing, right risk adjustment returns for senior assets. I can’t believe how fast they’ve glided and so, we really wanted to take advantage of it and fortunately our sourcing really has come up with a lot of good opportunities. I mean fortunately for FSFR shareholders, the have a lot more capacity than the FSC shareholders in order to take advantage of it. It’s just the fact that they are quite relatively under-levered in the environment so we expect to fully lever FSFR by the end of next quarter and be as far-levered as we can this quarter.
Question: Got it and when we think about incremental growth, if we just assume zero for equity capital raises in both BDCs of the next few months, how should we think about the next earning growth between corporate leverage at the BDC and also enhancing the size of the joint ventures with the Glick and Camper?
Answer: I’m not sure maybe Alex can answer, the cost associate with what you’re saying. I think, look we’re planning on not raising capital on either BDC for the all of next year. We are hopeful that given good performance over time that they will trade back above book, we may be able to access it but that’s not how I’m budgeting my budget. I’m budgeting my expenses and company for zero growth at both BDCs. Having said that, we expect to invest and grow in lots of different other entities and as we talked about aircraft leasing and the hedge fund and the silo business and opening an office in Tokyo, it’s not that we’re not investing in the future and it’s not that we are not gonna add a UM and potentially a UM and another vehicle as we talked in the road show, so of course we’re still exploring the non-traded markets but as you saw, the largest non-traded have some issues. The Wall Street journal even today, that market is still being evaluated of how to do that in an institutional manner.
