Chris Kotowski: Good morning and thanks for taking the question. I wanted to ask about the core private equity business. And I think if I heard him correctly, I think Rob referenced that it’s $600 million of EBITDA which is about 15% of your pretax earnings, but only 1% of DE. And I guess I’m wondering when and how €“ what is your philosophy or outlook on when and how the EBITDA starts converting into DE. I mean, do we have to wait 15 or 20 years until these investments are mature and ready to be monetized? Are these companies in a position where they can start throwing off steady dividends? Or do the cash flows have to be reinvested to keep the growth going? Or are there dividend recaps down the line? Or what is the, I guess, the strategy for converting the EBITDA into DE for KKR shareholders?
Scott Nuttall: Really appreciate the question, Chris. Let me start. Really, what we want to do first is highlight to you and all of our shareholders the fact that we think there is a fantastic portfolio that we’re building in core that is generating a significant amount of underlying value creation. And you’re right, it’s not yet showing up in our distributable earnings. Part of that €“ the reason for that is because we report DE, which as you know, is a cash metric. These investments by their very nature amend for a very long period of time. So it shows up in our marked book value per share, but not in DE. And you’re right, we would need to sell them or we would need to pay dividends or do some kind of a dividend recap for actually needed to show up in DE.
But even that, I think would understate the quality of the underlying earnings because these businesses are designed to have recurring revenue and recurring bottom line. And so part of what we’re doing now is just sharing with you that we’ve got a little bit of that disconnect that we’re building this portfolio that we feel great about. As the largest shareholder, and we think it will show up in some parts of the financial statements but not others today. Some of these businesses will start to pay dividends in the near term. So we’ll share that with you as we go along. But one of the things that we’ve been discussing is how over time, can we make it even more clear the value that’s being created in that part of our strategy and what are the ways to do that.
And just 1 example, Global Atlantic, as you know, we consolidate our share of GA’s earnings, which is a long-term compounding investment that has a lot of other strategic benefits to it but not dissimilar to some of the things that we’re doing with the core portfolio in terms of the underlying. It’s just GA shows up in earnings and core today doesn’t at least yet. So part of what we want to do is create a dialogue with you and our shareholders so you know what we’re seeing. And then over time, we’ll discuss how can we actually remedy that, but it’s a good problem, not a bad problem.
Operator: We have reached the end of the question-and-answer session. I’d like to turn the call back to Craig Larson for closing comments.
Craig Larson : Rob, thanks for your help this morning, and thank you all for your continued interest in KKR, and we look forward to giving you further updates on our progress in the quarters ahead. Thanks again, everybody.
Rob Lewin: Thank you.
Operator: This concludes today’s conference. You may disconnect your lines at this time and thank you for your participation.
