But I think we’d also have a tremendous opportunity to refinance a meaningful amount of debt that’s coming due at lower rates. So, there are certain hedges that are in place and the analysis that we provide on Page 16 is a dynamic analysis and changes based on the facts and circumstances of our assets and liabilities.
Finian O’Shea: That’s helpful. A follow-up on the equity rotation potential. I think it’s slide 19, and you all do a great job at presenting all of these sorts of dimensions of the New Mountain story. Obviously, a handful of big names here, they have all been here for a little while, and of course it’s been a funky market we’ve all been through in the last handful of years, but just seeing like a check on as a group where these businesses are in their rebound or whatnot in salability. And then, more specifically on just second part on Edmentum, it sounded like a sort of rethinking, we’re not in COVID anymore. Is it just that, or did something more fundamental operationally happen that caused that rethink? Is that one sort of like two steps back kind of situation? Thanks.
John Kline : Sure. Thanks for that question. And let me know if I don’t handle all of it. When we think about our equity positions, I think it is fair to say that they have been around for a little bit. The one thing, and I don’t use this as an excuse, but it has been over the last three years, a challenging market for every asset owner to sell company. So it has not been a great environment. I think you acknowledged that in your question. And we are eager to monetize. There’s no doubt about that. With regard to the performance of the top investments, I would say, Unitec is very healthy, has delevered a lot and has pretty nice tailwinds and has showed consistent growth over the last three to four years. And I think that, that company’s performing very well.
And just as a reminder that the end markets are telecom fiber construction, which is a really great market right now. Edmentum, will talk more about. Benevis, I’d say is a slow and steady recovery in the dental practice management industry. And we have a lot of resources focused on getting that business to the earnings power that we really think it can get to. And then Permian, I think has some really nice tailwinds as we shift the business mix in that business. So in general, we think the businesses are actually doing pretty, pretty darn well. And in a better M&A environment, we’ll have a lot better opportunities to monetize. But no matter how well your company’s doing, if the M&A environment is bad, it’s tough to get a good price. On Edmentum, there, and I think you could double check this, there are a lot of public data points, but there was a big Covid bump, positive bump for a lot of education technology businesses, that is very, very clear.
And that, and Edmentum just has had this — the market has affected Edmentum the same as a lot of other companies have been affected by that bump. So I really think it’s just waiting, as I mentioned for the markets to normalize, but there’s nothing in the products, the execution of the business that is causing us concern. We just are going to have to fight harder to win business in a market that is not quite as good as it was during Covid when every school system was rushing towards these ed-tech solutions for remote learning, etc. So, I think it’s just this, it’ll just take a little time for the markets to normalize and for us to attack the market even harder. And so I think we’ll know a lot more about Edmentum over the next 12 months. And we’re actually very optimistic about how the performance will evolve over the next 12 to 18 months.
Finian O’Shea: Great. Thank you, John.
John Kline: Did I get everything?
Finian O’Shea: Yes.
John Kline: Thank you.
Operator: The next question comes from Erik Zwick of Boning and Scattergood. Please go ahead.
Erik Zwick: Good morning, everyone. Now with Hovde Group. Wanted to start maybe first and just your thoughts on the opportunity for portfolio growth. You notice a deal flow is picking up in real time, and I guess the harder part of the equation is maybe to have more than a couple months out a strong view on repayment activity, but just thinking with spread compression maybe putting a little bit of pressure on investment income dollars, if you were to grow the portfolio to potentially offset that, do you see that kind of pathway, or how do you think about the opportunity to grow the portfolio over the next quarter or two?
John Kline: Sure. Thanks for that question, and I’m glad you asked it, asked it because net of cash, you know, this quarter we were1.03x statutory debt. And so, that is the lowest level we’ve been at in a little while. And so, I guess I would say that we’re very committed to our range, which is statutory leverage between 1 and 1.25. But I think there is definitely an opportunity to move the leverage up a little bit to improve the ROE, use that as a lever to offset some of the spread compression, which you can see and we acknowledge. We don’t want to. We want to be very disciplined about the way we do that and we definitely don’t want to be, as we said in the past, we don’t want to be at the absolute top end of our range every quarter. But could we be at the mid-high end of the range in a comfortable manner? I think that is possible.
