Erik Hirsch: Sure, Mike. Erik. The tech investments are across a variety of different buckets. So bucket number one and, frankly, the bucket we started with and have done the most around our technology tools that make Hamilton Lane both more efficient and a better service provider to our customers. So think about back-office reporting, data ingestion, analysis, analytics, sort of think about that as bucket one. The vast majority of those we simply use as a client, oftentimes with preferential terms or again, different unique strategic angles, or single-purpose use cases. So, I would sort of look at that bucket as Hamilton Lane is a better and, frankly, higher-margin firm, delivering better results more efficiently to clients as a result of that bucket.
Now as you remember, we have also monetized a variety of those over time with great success. So, very large significant cash multiple. So, we’ve not only gotten the internal benefit, but we’ve gotten good return on our balance sheet capital. Bucket number two, I would sort of put around distribution. So think about that with not only the token space, but also plugging into firms that are servicing the adviser and offering product on their platforms. So that has been a way for us to try to access a customer that we might not otherwise be able to reach, or reach a customer in a way that is more beneficial to them. We also think that some of those, because they’re much more visible and our brand is associated with them, are great ways for us to enhance the Hamilton Lane brand in a way that we see more value-added and more efficient than, say, putting our logo on a baseball uniform.
And so that’s been the benefit there. Bucket one, the operational side, I think we’ve already seen significant meaningful results. Bucket two is where we’re a little earlier. And so as we go forward and think about what we’re going to be doing or spending or deploying, we’re looking at — we’re always looking at firms that are kind of occurring in both buckets to see where we think we’re going to have strategic benefits. We don’t have a set budget around these because they have been opportunistic to-date. But again, we have a meaningful balance sheet, and we think this has been a very good and effective way to use it.
Mike Brown: Great. Thank you for all that color.
Operator: Thank you. The next question comes from Finian O’Shea from Wells Fargo. Please go ahead.
Finian O’Shea: Hi, everyone. Thank you. Good afternoon. Another question on wealth specifically for the newer credit Evergreen. Are you finding that lands with wealth advisers, perhaps as a different kind of multi-manager product? Or do they tend to group it in with all of the non-traded BDCs in market? And in that context, how would you describe the addressable flow potential? Thank you.
Erik Hirsch: Yeah, Finian. Erik. I think the way we’ve been standing out and differentiating is because of that multi-manager approach. It’s no secret that our Evergreen products are co-investment oriented. And we think one of the big advantages of that is the fact that we’re providing in a single vehicle multi-manager, multi-industry, multi-size, multi-geography exposure, in a way that’s harder for a single manager to do. And so that is our differentiation and that is sort of where we are targeting. If you look at the credit flows, a number of them have come from folks that were already in one of the flagship Evergreen Funds, have had a good experience, liked the service, thought the returns were strong, and then have decided to add additional exposure to us via credit.
Finian O’Shea: Okay. Thank you. And just a follow-up there, given it does seem to be one of the few products as described in market. Is it at all on the table to, say, invest more meaningfully in distribution that’s likely required to pick up to the monthly flow pace that some of the leaders in the market show? That’s all for me. Thanks.
Erik Hirsch: Yeah. Thanks, Finian. I mean our goal is to increase flows, period. I noted that if you look at Evergreen flows kind of calendar over calendar, we’re up 76%. So I think we have been doing a terrific job of that. But we’re not stopping or resting on our laurels. And so if you look at sort of future expansion plans for us, it very clearly has additional adds to sales team, other mechanisms for distribution. And all of this is designed to increase the flows, continue to maintain, and to build that brand in that space as a market leader. So 76%, I think, calendar over calendar impressive, and our view is let’s keep going.
Operator: Thank you. There are no further questions. I will now turn the call back over to Erik Hirsch for closing comments.
Erik Hirsch: With that, we thank you for the time. We thank you for the questions. Wishing everyone well. And thanks for the support.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating, and we ask that you please disconnect your lines.
