Dwayne Hyzak: Sure, Mark. If you look broadly at our changes in fair value, both in this quarter, and I’d say for the last couple of quarters, we’re seeing the results of a number of companies that are just performing at a high level, specifically in the lower middle market. Some of those companies have completed acquisitions over the last 12 or 18 months, as you may recall us saying in prior quarters, and those acquisitions have been integrated well, they’re performing well, they’re realizing the synergies, and you’re seeing the results of those strategic, valuable acquisitions come through the company’s quarterly results, and then you see it come through our fair value. So that would be a big driver. When you look at the exit activity, I would say one thing from our perspective, which we may not control the outcome because we’re just one of the equity owners, we don’t own control or drive all the final decisions of these individual lower middle market portfolio companies, but in general, if we’re going to be motivated or inclined to sell, it’s likely going to be at a premium to our fair value.
Otherwise, all things being equal, we’re likely going to be more inclined to hold the investment. We have permanent capital, our desire is to have a very, very mature, diversified, broad portfolio. So all things being equal, if we had control over everything, we would maintain our best companies forever, unless somebody was going to pay us a significant premium to what we think is worth as of today. So that may not directly answer your question, but I think we feel good about where we have our portfolio companies valued overall. We specifically feel good about where we have them valued in the context of them going through an exit or sell process.
Mark Hughes: Thank you. Appreciate it.
Operator: [Operator instructions] Next question comes from Vilas Abraham with UBS. Please go ahead.
Vilas Abraham: Hey, everyone. Thanks for the question. Maybe just to follow on Mark’s question a little bit. On these add-on acquisitions that are driving some of the fair value appreciation through the realization of synergies, is the momentum for that dynamic going to continue for the foreseeable future? And one of the key drivers here as you think about your fair value marks for the next few quarters?
Dwayne Hyzak: Sure, I’ll give you a couple of comments. I’ll let either David or Jesse add on, because they’re involved in a couple of the companies that are executing acquisition growth strategies. But just to kind of go backwards a little bit, if you had been looking at us, talking to us five, six years ago, acquisition growth strategies for our portfolio companies, while we had some, it was not a significant activity for most of our companies. It’s something that we long had viewed as an opportunity. And we started in our president’s meeting five, six years ago, really talking about the opportunity to pursue growth through acquisitions and started educating our companies on how and why they should at least consider it, clearly not forcing them to do it, but at least should consider it.
As a result of that, and as a result of the just the high quality of the companies and management teams that we have in the portfolio over the last couple of years, really, COVID was a time period where it really accelerated. We started seeing more of our companies embrace acquisition growth opportunities. So when we look at it, we’ve got a number of companies that, as I said, have been executing those acquisitions, not just closing the acquisition, but integrating and optimizing the synergies. And they’ve done a lot of that. And we continue to have some of those same companies continue to explore additional acquisitions. But we also have a broader group, some companies that have not executed acquisitions in the past that have very attractive strategic acquisitions that we’re helping them work through.
