Michael Cyprys: Great. And just to follow up on that point, with the new client growth for separate accounts, how much would you say is new customers that are moving into the privates for the first time versus share gains from competitors versus moving from an insource to an outsource solution? And just how do you think about the sizing of the broader market opportunity for separate accounts?
Jonathan Levin: I could take that one, Michael. Go ahead.
Michael Sacks: Go ahead, Jon.
Jonathan Levin: I was just going to say, we’ve said this on prior calls and I think it’s an important one. None of our business models, not ours or our peers, relied in any material way on any kind of share gains. We wouldn’t have 90% plus re-up rates, nor would our peers if that was a huge part of the story. But that doesn’t mean that you’re not coming into a client that might work with a peer of yours in some other way to help them in a different vertical. Maybe they work with someone in private equity and you’re helping them in infrastructure or things that you might see stories like that. I think the reality is that when you look across the world today, maybe with a little bit of an exception around the individual investor, most people have some allocation to private markets, but everyone’s in a different stage of that journey.
Maybe it’s not all the asset classes yet, maybe it’s only funds and not yet co-investments, maybe it’s not yet secondaries, whatever it might be. And so I think each story is obviously a pretty different story when you get into the details of it, but you’re helping them — you’re entering the picture to help them along that journey with a part of that private markets program that is either not yet developed or in some form of stage of transformation. And when you look at our pipeline or our capital raising historically, it’s hard to put a number on that. You know that the size of the private markets is just a massive, massive size. It would be a ridiculous number. And we don’t see that kind of macro trend changing at all in terms of people’s dedication to and commitment to continuing to build out their alternatives and specifically their private markets programs.
Michael Sacks: The one thing I would add is just that, I think at this stage, you don’t have too many huge balance sheets that have no alts, but you definitely have big balance sheets that don’t have a full suite of alternative strategies or don’t have a full suite of implementation approaches within an alternative. And those are — that speaks to the adoption of new strategies with us from existing clients. It speaks to the mix shift we’ve talked about where people are utilizing co-invest and secondaries in conjunction with their primary private equity allocations. And that is, to some degree, at the core of what Jon talked about with regard to the credit opportunity. And so all of that is still very favorable as a backdrop with, we think, a lot of legs for the whole of the industry.
It was a slow fundraising year last year and it was significantly impacted by transaction levels, which are easy to see in kind of the carry line. And as that starts to — that — we think that flywheel is starting to loosen up. We hear more commitment to transactions on the part of sponsors and things like that. So there’s plenty of good, solid fundamental backdrop here that hasn’t changed at all. And as the flywheel loosens up and transactions activity pick up, I think the fund flows pick up as well. And we see it today in our pipeline.
Michael Cyprys: Great. Thank you.
Operator: I am not showing any further questions. I will now turn it back to Stacie Selinger for our closing remarks.
Stacie Selinger: We just want to say thank you again to everyone for joining us today. We appreciate the interest and feel free to reach out if you have any other questions. If not, we look forward to speaking with you next quarter and have a wonderful day.
Operator: Ladies and gentlemen, thank you for participating in today’s conference. This concludes today’s program. We hope everyone has a great day. You may all disconnect.
