Scott Nuttall: Thanks, Gerry, it’s Scott. I’ll take that one. It’s hard to answer that question in Chris fashion because it kind of depends on where you are and who you’re talking to. So there’s no doubt, kind of as we got into the back half of last year, some of our LPs were struggling with allocations on the back of a reduced denominator, that was predominantly a U.S. pension fund dynamic. As the calendar has turned, and there’s a new budget year, some of that has softened and we’re having conversations that indicate they’re looking to put capital to work. But if you go outside the U.S., Middle East, Asia, sovereign wealth, insurance, in particular, you find investors aren’t struggling with those same issues. In fact, several of them are very forward leaning and trying to figure out how to invest into this environment.
So the overall picture is not consistent depending on where you are. What is very consistent, though is, we’re finding this year, just like last, a lot of interest in a couple of themes. Anything with inflation protection and yield. So, I think real estate, infrastructure, credit, significant amount of interest. I’d say an increased awareness that in times like this, all things, private equity tend to perform quite well. So it should be some very strong vintage years coming out of this period of time. So people are kind of swinging a bit to think about how to take advantage of this environment. So, I’d say people are more in their front foot this year overall than maybe last year. And there’s more of the conversations gearing toward how do I invest into this in a thoughtful way.
And then part of that is people look back and post-GFC and maybe post the initial stages of COVID, some of which they were maybe a little bit more aggressive in terms of deploying into the environment spend. And I think that’s what’s leading to some of this shift in sentiment.
Operator: Our next question is from Bill Katz with Credit Suisse. Please proceed with your question.
Bill Katz: Okay thank you very much. Good morning everyone and appreciate taking the question. Maybe circling back to one of your growth drivers. If you could talk a little bit about on the global private wealth opportunity. You mentioned a couple of new products coming out. Maybe update us on what you’re hearing from the respective channels, just given some of the mixed macro backdrop with higher yields in more liquid products. And what might be having in terms of behavior and demand as you scale the business? Thank you.
Craig Larson: Bill, it’s Craig. Why don’t I start? Look, I think the tone in any near-term period is going to be influenced by what we all see in broad markets. But I think we’d encourage everybody not to miss what really is a huge opportunity for us. And when we look at how we’re positioned with our brand, our track record, our ability to innovate the relationships that we enjoy with distribution partners. I think some of the things that Scott mentioned in our prepared remarks, we spent the better part of the last two years really as a firm positioning ourselves to be able to launch a handful of new products, and we’re on the cusp of currently. So, I think we just feel really well positioned in what is an enormous massive addressable market.
And again, our views of the opportunity here hasn’t changed. And I think, I guess one final thought in a product like KREST, again, we think the performance of KREST and the experience that people have had with that as an entry has been great. So performance was an 8% €“ over an 8% return in 2022, 16% inception to date, over a 5% current yield. So, I think when we look at the initial experience that investors have had from the democratize products, we feel very good about what they’ve experienced.
