David Magdol: Hey Robert. So, when we think about the comment on how we characterize it, the near-term outlook is really mostly impacted by Q1 ’23 and how we see our closing is taking place in that period of time. But I’d say, the lower middle market has always been lumpy. The medium term, Q2 and beyond, we have a better visibility towards the pipeline growing. So, I wouldn’t be concerned relative to the overall market and taking — making too many assumptions about it being unattractive or not being able to surface our type of opportunities. We’re very confident that the year will play out well relative to the opportunity set. We’re still dealing with family-owned businesses, it still need to transact, and we’ve got a very active kind of medium-term pipeline that’s out there.
Robert Dodd: Got it. Thank you, and again, congratulations on the quarter.
Dwayne Hyzak: Thank you, Robert. We appreciate it.
Operator: Our next question comes from Bryce Rowe with B. Riley. Please proceed with your question.
Bryce Rowe: Thanks, so much. Good morning guys.
Dwayne Hyzak: Good morning, Bryce.
Bryce Rowe: Let’s see, I just wanted to kind of dive into the fair value marks here in the quarter. Nice to see NAV up and obviously, contribution from the ATM, but also unrealized or net gain type of activity, you highlight in the press release that some, I guess, 33 lower middle market portfolio companies saw net appreciation and then 27 depreciation. Can you — kind of similar to Robert’s question around dividend breadth, can you talk about — is there a portfolio company that’s having an outsized impact from a mark perspective here in the quarter?
Dwayne Hyzak: Sure, Bryce. I would say that when you look at our depreciation on the lower middle market side, there’s a number of companies that continue to outperform significantly. And we see it to Robert’s prior question on the dividend income side. And on your question here, you also see it on the unrealized appreciation. And just looking at schedule here, I would say, there’s kind of six or seven companies that contributed significantly to the unrealized appreciation during the quarter. What I’ll also tell you, and I won’t give you numbers by names, but I would say that those same companies are also a lot of the primary contributors to the dividend income. So we just got some companies that despite the challenges we see in the economy with inflation, supply chain, quality labor, et cetera.
These companies, as you’ve heard us say in the past, are excellent new managers, excellent teams, and they’ve been able to navigate the challenges, not just navigate them, but continue to excel. And you’re seeing that come through in the continued appreciation on the fair value side and on the dividend income contributions.
Bryce Rowe: Okay. Okay. That’s helpful. And then maybe on the asset management activities and the dividend into the BDC here in the quarter. Obviously, nice uptick in the dividend, it looked like the incentive fee income kind of ticked up pretty meaningfully in the fourth quarter. Is that a sustainable level? Is there anything in that income that wouldn’t be considered kind of recurring?
