Atul Varma: Correct.
Chris Kotowski: And that’s basically the primary noise in this quarter’s P&L?
Atul Varma: That’s correct.
Operator: Your next question is from the line of Michael Cyprys with Morgan Stanley.
Michael Cyprys: I was just hoping you might be able to expand a bit on your outlook for expenses and FRE margin. I think in the past you’ve mentioned, you probably would expect limited margin expansion. Near term, so maybe you could just talk about some of the key areas that you’re investing into. And I think you also mentioned that you’re going to be looking to open some other offices around the world. So just curious if you can elaborate a little bit on that strategy? And any help to help quantify what sort of impact you’re seeing on the business side from these office openings?
Erik Hirsch: Yes. Mike, it’s Erik. I’ll take that. So I think what you’ve seen is, we had — the margins have really normalized kind of post that sort of COVID bump that we and others were experiencing. So you’re back in a much more normal operating environment, travel, events. Compensation, I think, is remaining remarkably consistent. That ratio between kind of comp management fee has stayed very steady. Also if you look at comp, I mean management is doing a really good job here of — despite, again, a challenging hiring market that you’ve heard from lots of other people of maintaining a good comp ratio. Comp is essentially moving directly in line with headcount, which is moving very much in line with overall revenue to the business.
So I think all of that is sort of showing you good expense discipline, good continued investment in the business. I don’t think you’re hearing us or anyone say that in today’s environment that you’d expect to see big margin expansion. Things are expensive, whether that’s buying a plane ticket, hosting an event, having a meal, everything is expensive. And so I think the fact that we’re maintaining margins where they are is again, a real focus on doing just that. On the office openings, this has been just part of our geographic expansion plan, and we want to be close to customers. We want to be close to prospects. We want to be close to transactions. And so today, that footprint continues to be well developed. We see there’s more regions and more parts of the globe where we see interesting opportunities.
We want to be there on the ground. I think we’re very, very mindful of office openings coming with business. So I think when you look at our history, we have locked the office openings over the years and that hasn’t resulted in us sort of saying to you, well, we had to invest in that, and therefore, that was a big set back. Usually, we find that we’re in that region prior to actually opening up the office, getting business in order to justify that physical presence there, and so I would expect that to continue in the future.
Operator: There are no further questions at this time. I will now turn the call back to Mr. Erik Hirsch.
Erik Hirsch: Great. Well, again, thank you for the time. Thank you for the interest, and everyone, be well.
Operator: Ladies and gentlemen, thank you for participating. This concludes today’s conference call. You may now disconnect.
