Ben Budish: Got it, very helpful. Thank you.
Operator: Thank you. Our next question comes from the line of Michael Cyprys of Morgan Stanley.
Michael Cyprys: Thank you and good evening. Just a question on private credit with new bank capital rules that have been proposed and broader banking sector challenges. Just curious how you see the opportunity set unfolding on the private credit side. What areas would you view as most attractive for P10 versus less attractive? Maybe you could talk about some of the steps you guys are taking or may need to take in order to best capture the opportunity set? And any particular gaps that you see at this point as you look across the platform on the private credit side?
Luke Sarsfield: Thanks, Michael. It’s Luke. I’ll jump in and then others can jump in as well as they see fit. So point one, we think you’re right, and we agree with the thesis of your question, right, or the premise of your question around the fact that there has clearly been promulgated a set of rules that are going to make it more challenging for many of the banks and the regional banks, in particular, to participate in that. We think that, that has real benefit by imposing barriers to entry around many of our businesses, certainly notably for our WTI venture debt business, where we think that, that will really help even further expand the moat around that business. And certainly, to your point, though, when you look more broadly in private credit, it’s increasingly becoming a place that’s moving out of the traditional banks and moving into nonbank institutions.
And for us, we think that, that potentially creates an opportunity. We think we already have a great collection of private credit assets, many focused and very defensible, very protected niches where we are the market leader or among the market leaders. But to your point, we do think there is white space in the broader private credit opportunity. It’s something that over the coming period of time, we’re going to continue to look at. We’ve already, as you can imagine, started to look at it. We’re going to continue to dig deep. And to the extent that we find something that we think is additive, value-enhancing, accretive and synergistic with our portfolio, private credit could be one of those spaces where we very well engage in some inorganic activity.
Michael Cyprys: Great. Thank you. And then just maybe a follow-up question, if I could, coming back to some of your commentary on M&A. Maybe you could help elaborate on what opportunities you think could make the most sense at this point for P10? Maybe talk about how you think about prioritizing that at this point. Thank you.
Luke Sarsfield: Well, it’s a really good question. One of the things that I’m doing in concert with Clark and our team here is a really kind of deep, I would say, market mapping exercise to really think about where does our current portfolio sit? Where are the opportunities in the outside world? How do those things potentially come together? And so that market mapping exercise will be an important component to it. The next component to M&A as a former practitioner, I would tell you, is a willingness to transact, right. And so it doesn’t matter if you’ve identified the perfect asset, if they’re unwilling to transact, nothing is going to happen. And so clearly, you need to find places where there is a willingness and a desire to transact.
I would say the good news is, given our footprint in the middle and lower middle market and the lack of other options for many independent firms, the prospect of partnering with P10 is a really, really attractive one. And so we think we see a lot of flows. Certainly, the other place that I would identify is we are – have been historically exclusively, at least from an investing perspective than a physical footprint perspective, in North America, though, obviously, we do have a number of LPs around the world, but our investing footprint is exclusively North America. There are a number of firms that we are aware of in many different geographies that have a very similar strategic approach in their market. And some of those markets have really interesting and compelling dynamics that are not unlike the dynamics we see in the U.S. middle and lower middle market.
And so there would probably be natural opportunities there to expand our footprint. We’re obviously going to be really thoughtful about this. As I said, we’re going to be incredibly disciplined about it. But we think that there’s a robust opportunity set, and we’re really going to build on the work that’s already been done here to really refine and optimize our M&A engine so that we’re really world-class in this endeavor.
Michael Cyprys: Great, thank you.
Operator: Thank you. Our next question comes from the line of John Campbell of Stephens Inc.
John Campbell: Hey guys. Good afternoon. This is kind of a bigger picture question, but I’m hoping you guys can maybe talk to the main differences that you’ve been seeing, I guess, maybe of late versus over the past couple of years, just in the lower middle market, so your core markets versus just the kind of higher end. I don’t know how you want to talk to that, maybe just the broader flow of capital or just investor appetite for various strategies, but are you seeing any kind of deviations that you haven’t seen maybe in the past?
