Lenders’ bite sizes are down and so it’s taking that extra effort to arrange the financing. And so the marginal lender has the ability to get — to sort of price the deal, and so I think it’s a good competitive environment. I think it’s been a good competitive environment for the last year or so. There’s always little ups and downs. There’s also been reduced inflows generally in the non-traded space, which has been the source of incremental capital into the direct lending space. So as that has contracted a bit, it’s created more purchasing power for those that have capital like ourselves. So generally good. But deal flow is light as well. So that’s the counterbalancing factor. But I think as I said a minute ago, great environment for new investments.
That’s reflective of a good competitive environment for us. And obviously, the syndicated market continues to be — is opening back up but it continues to be weaker. And I think you’ll see the banks start to commit to deals. We’re hearing that and seeing that, but they’re being very cautious on terms. And so even as the banks start to come back to the market, I think direct lenders are still going to have ample opportunities to commit to deals given cautious commitment levels from banks.
Kenneth Lee: Got you. Very helpful there. And then one follow-up, if I may. Just in terms of the amendment activity you’re seeing in the portfolio, were there any out of the ordinary amendment activity that you’ve been seeing more recently?
Craig Packer: Nothing out of the ordinary. As we mentioned, there has not been a pickup in amendment activity in terms of volume. There hasn’t been a pickup in the nature of the amendment activity. We had 2 or 3 amendments this quarter. That’s about what we typically average, and it’s the typical kinds of discussions around — with borrowers’ situation specifics. So it remains a benign environment from an amendment standpoint.
Operator: Our next question comes from Mickey Schleien with Ladenburg.
Mickey Schleien: Craig, I don’t want to beat a dead horse here. There’s been a lot of discussion about the lender-friendly environment. I just wanted to follow that up and ask you about whether that’s opening up some new industries for you to look at. There’s obviously the saying, there’s no bad deals, there’s just bad prices for deals. At the margin, are there sectors that look more interesting to you now where pricing is more interesting and sort of gets above your bar and is providing incremental investment opportunity for the Owl Rock platform?
Craig Packer: Thanks, Mickey. I’m not ready to sign off on there that there are no bad deals supposition. There’s definitely bad deals that we would say no to at any price, but I think I understand the nature of your question. Look, we have been really consistent to the point maybe of boredom on the sectors that we like. And you’ve been on our calls and you’ve heard us say this, we like recession-resistant sectors. We like businesses that have annuity-like cash flows. We like businesses backed by private equity in a significant way. And our biggest sectors, software, insurance, health care, food and beverage, have been our biggest sectors every quarter since we started and it’s served us well, and it’s put us in a great spot in a potentially weakened economy to outperform.
