Unidentified Analyst: So we didn’t really see the impact of RIDL on the investment income?
Ted Goldthorpe: Not at all. Zero dollars of impact on that investment income for the quarter.
Brandon Satoren: That’s the open trade payable on the balance sheet $4 million.
Ted Goldthorpe: It traded and closed on like Good Friday and settled on like Monday. So it kind of – it went over quarter end.
Unidentified Analyst: And the rest of the deployment, was that made sort of throughout the quarter, or did we not see — when you get a full quarter of in Q2, when you get a full quarter of Q1’s deployments, will it be a material increase?
Ted Goldthorpe: I think it will certainly be an increase. They were not done at the beginning of the quarter. They certainly weren’t done as far toward the end as RIDL. So you would see like a 100 percent, pickup from RIDL. But there definitely, again, should be tailwinds from the net deployment in Q2 versus Q1. And again, off the top of my head, I think that the other one that I was referencing closed sometime in March. But again, you will definitely see a pickup from our net deployments kind of heading into Q2.
Unidentified Analyst: Okay. And would you care to further your comments on possible exits of equity of the equity portfolio?
Ted Goldthorpe: I think the comment I would make is similar to the market as a whole. M&A is starting to come back in the private credit space, but generally speaking in sort of the private equity space as well. It was a really tough — it’s been a really tough 12 or 18 months to try and sell a business. And so I think just from a macro perspective, we have a lot better chances of exiting an equity position or two this year relative to last year or probably even in sort of the back half of 2022 unless something had already been in a process. Nothing really got done in the back half of 2022 either. So I’d say we’re, hopeful and optimistic. But from a macro perspective, we certainly have tailwinds, to be able to exit some of these as opposed to all of last year. There were certainly meaningful headwinds to exiting equity positions.
Brandon Satoren: We expect to make a lot of progress on that front over the course of the year.
Unidentified Analyst: Got you. And the non-accruals — by the way, you made the comment in your prepared remarks about non-accruals, about there being three non-accruals. The schedule says four. Is the schedule wrong or did you just misspeak?
Brandon Satoren: No, sorry, three borrowers are non-accrual. One of them happens to have two securities.
Unidentified Analyst: Got you.
Ted Goldthorpe: It’s the same set quarter-over-quarter.
Unidentified Analyst: Okay, because I see. Because in the – on the schedule it says non-accrual investments, not borrowers.
Ted Goldthorpe: Correct.
Unidentified Analyst: Got you.
Ted Goldthorpe: Apologies for the confusion there.
Unidentified Analyst: No, not a problem, not a problem. So it was a further markdown of an — so at the end of Q3, it was $10.6 million at fair value. Then it jumped up to $12.8. Then it went down to $10.6. Is that just coincidence that it’s the same number?
Brandon Satoren: Yes, it is. In from Q3 to Q4, we added one, which was the reason for the increase there. And this quarter, one of them was marked down and it’s a pure – the numbers are pure coincidence.
Unidentified Analyst: Got you. Any prospect of cleaning some of those off? Are they in work out? Is there a shot that the borrower will restructure it?
Ted Goldthorpe: They’re all in various — obviously, all in very different stages since they’re on non-accrual and sort of restructuring. I would say for the only one that really moves the needle, we probably still have a lot of time to kind of working through that. So there’s — of the three names, there’s two that are on the smaller end and one is fairly large, which is the historical Sequoia position. It has a lot longer to work through. And again, the other ones, we obviously continue to try to work out and work through. I wouldn’t say we’re necessarily any closer than we were last quarter and we’re also not farther away. We’re hopeful that we will find all of them to try and move them into accrual status eventually. But again, for the one that moves the needle, I would not say we’re closer to.
Unidentified Analyst: Got you. All right. Thanks a lot.
Ted Goldthorpe: Thanks, Steve.
Brandon Satoren: Thank you, Steve.
Operator: There are no further questions at this time. I will now turn the conference back over to Ted Goldthorpe for closing remarks.
Ted Goldthorpe: Well, thank you everyone for joining us today. And we look forward to speaking to you again in August when we announce our second quarter results. Thank you very much.
Operator: Ladies and gentlemen, that concludes today’s call. Thank you all for joining. You may now disconnect.
