Craig Larson: Hey, Brian. It’s Craig. Why don’t I start and then Rob will pick up as it relates to the monetization piece, I think specifically. So, a couple of observations. If you think, and let’s start with private equity and real assets and then as you note we’ll switch to credit, but I think over the last 18 months, a lot of the primary markets have effectively been shut. The IPO market’s been pretty much shut over this period of time. The syndicated debt markets have been dislocated for the majority of that period, and capital has been quite precious. There’s no question. Now those from a deployment standpoint, those are all things that are good for us. And so that’s why I think on a number of these calls, you’ve heard us actually be quite constructive on risk reward.
I think as it relates to private equity and real assets, we’re value focused. We’re looking for those opportunities where we can bring our operational resources to bear and where those can really move the needle. We love corporate carve outs. We’ve also been very active on pursuing public’s private at this point. We’ve announced or closed on 14 take private transactions since the beginning of 2022. The most recent of those, you probably would’ve seen some articles this morning. So, I think that’s been an area for us where we’ve been as active as anybody. I think as it relates to credit, and again, this is a big business for us. We’ve detailed in our press release, you see it on page 11, the composition of that overall amount of AUM $227 billion, of that we have $80 billion in private credit, really broken into those two pieces.
Asset-based finance, real secular drivers as Rob had mentioned in his prepared remarks. And I think in direct lending, we remain very constructive on the risk reward, but you’ve seen overall transaction volumes be pretty modest within direct lending. So, I’d think of that asset class as one that has been taking a greater share, but of a smaller piece of the pie. But on overall risk reward, we remain very constructive on regular way direct lending at the same time.
Robert Lewin: Yeah. Thanks for the question, Brian. And I think you could separate a little bit deployment and monetization. As Craig went through, there’s a lot going on in the deployment side, and we’ve done our best as a firm to really be focused on linear deployment of the dry powder in our strategies. Of course, when the capital markets are open, it makes deployment a little bit easier, but there is no doubt when the capital markets are open and the overall level of volatility comes down for some period of time that it’s going to open up real drivers to be able to generate monetization related revenue. I mentioned on the call, we’ve got $10 billion on our balance sheet today of effective embedded gains between carried interest and our balance sheet investments.
So, we’re very well-positioned to be able to take advantage of the market opening. And again, we hope that some of the green shoots we’ve seen here persist post Labor day, and that presents some really good opportunities for us to deliver outsized outcomes in 2024 and beyond.
Scott Nuttall: Hey, Brian. It’s Scott. I’d say — I would expect both deployment and monetizations to increase if the capital markets open up. As a reminder, we’ve got $100 billion of dry powder, and so that’s great news from a deployment standpoint. When markets are shut, it’s harder to get deals done. We’ve been more active, especially recently, but there’s no doubt if the capital markets open, there’ll be more — overall M&A activity, which will accrue to our benefit, and you’ll also see more monetizations and that’ll run across asset classes, including to your question infrastructure.
Brian Bedell: That’s great. That’s great color. Thank you so much.
Operator: Our next question is from the line of Finian O’Shea with Wells Fargo. Please proceed with your question.
