Alex Saigh: Yes. I’m sorry about that. I should have answered. It’s — well, as you can see in one of the pages of the presentation is 1.2 million, the number that you just mentioned. As we do close on the 2 M&As, I think it’s — they have a slightly lower effective management fees than the 1.2. I think the number going forward is between 1.1 and 1.15. Ana, can you correct me if that number is correct, please?
Josh Wood : Yes. Alex, this is Josh. I think if you do the math, we gave some basic economics on the effective fee rates and the fee earning AUM that we’re bringing in on the 2 pending M&As. And I think if you do just a simple math based on our current blended rate and the blended rates implied by the economics that we gave, you’ll get to a number that’s between 1.0 and 1.1.
Alex Saigh: All right. That is great. And I just add on when you do your assessment, of course, and building up into the model, the new acquisitions are bringing permanent capital and fee-paying AUM that is actually charged on NAV. So this is in terms of quality, visibility and resilience is very high quality. And just consider that when you think about the model.
Operator: We have a follow-up question from the line of Craig Siegenthaler with Bank of America.
Craig Siegenthaler: So my follow-up is on M&A. And you’ve been very active over the last couple of years with expansions in different geographies and products. Moneta JV with BancoColumbia, VBI. But how do you think about existing capacity on the balance sheet and with your currency, the stock today to do more deals? And I think you’ve been eyeing Mexico for a while, maybe provide us a quick update on your thoughts on expanding into Mexico.
Marco D’Ippolito: So remember what we always say when we think about acquisitions, we’re buying products, channel and distribution. So every time I start my answers with this because it’s really part of our strategy. So proud of doing 6 acquisitions and adding credit real estate meaningfully now GBMS. I’ll start with your second piece of your question. Mexico, it continues to be a priority continues to be a target. So the explanation is mostly on execution. We were not able to find the right assets to start, but we continue to be very excited. We think it’s not only a very important geography and very complementary to the platform, but also a great opportunity with everything is going on down there. Regarding the first part of your question, how we’re going to fund our expansion.
What we’ve been doing with our acquisitions is funding in a mix between cash and equity, retaining a couple of flexibilities. So there’s flexibility relative to when this cash is coming out. Most of the acquisitions have been structured with sellers financing, so giving us time to generate the cash to pay for the acquisition. And in certain circumstances, the we can opt between paying in cash or in equity at our favor, of course, all that to give flexibility for us to be nimble when we make — we design the strategy, we designed the payment. We do have — in the later quarter of last quarter, we announced one way to fund our acquisition, which is retaining part of the performance fees. I think we led that very clear, and I’ll repeat here just for the sake of clarity, we’re not touching on the FRE.
We may selectively retain part of the performance fee in order to fund any cash necessities on the short term. So these are tactical movements may occur in order to address the funding needs in the best way possible. And I’ll defer to Ana to talk a little bit more about our cash flow. We do remain active in acquisitions. We mentioned in this call that this is going to be an important year of consolidation because we have 2 large pending M&As to be closed, the Abrdn business by end of the first half. And Credit Suisse business most likely by the end of this year, given the complexities of — or in the particularities of the closing of this transaction. So not a lot of FRE coming through this year, but very solid FRE coming for next year. As a reminder, when we announced the Abrdn transaction and the Credit Suisse transaction, we gave us some guidances for you to work on how much this will bring into the platform for the Abrdn business, what we announced is a $7.8 billion feet AUM deal where the average fee is between 50 and 60 bps from the average management fee, which will equate to a margin between 30% and 40%.
And for the Credit Suisse deal, what we announced is a $2.4 billion at the time of the closing, with the 50 — with the 70 bps as a management fee and around 50% of FRE contribution. Hopefully, I answer your question.
Alex Saigh: If I can complement, Marco, I think going back to 2019, 2020 and one of the main reasons of why the IPO early 2020 was, Greg, I think we saw this consolidation coming into place I think we were kind of first movers with some few of our peers and then we see some of our peers moving into this consolidation mode. You know the names of the major players in the industry buying, as Marco said, products blind channel, buying geographic expertise. So I think we are a little humble this year, but we were a little bit ahead of the peer group in that sense, very important consolidating the Latin American market and catering to our Latin clients. And also adding to our international clients. I want to come into account. So we have a very interesting menu sets today of over 30 products that give us this ability to continue growing the platform very healthy and actually very comfortable today that we can actually deliver on the guidance that we gave late ‘22.
So this is – it was by strategy, not by chance that we’re here today, thank God I think we’re well positioned here. And we will continue to do more. I think we have a bigger balance sheet today and a bigger earnings stream. And what I saw happening as well, and Marco leading this effort, I think that a lot of general partners approaching us now more than 3, 4 years ago, we’re convinced that the consolidation is at play in our industry and we need to join forces with Patria because of everything that we can do for them on the fundraising side, on having a listed stock as a tool to attract talent and retain talent and to give the senior executives of this respective general partner liquidity in the future. So things that we saw a couple of 4, 5 years ago, they are actually happening, and we are getting phone calls now contrary to 3, 4 years ago that we had to call people and explain what we were trying to do.
So it’s pretty interesting to see that happening. I think we’re not the only ones getting calls in the industry because the consolidation is at play. But we’re definitely getting calls in our part of the world, which is pretty nice to go through this process. Thank you.
Operator: Thank you. Ladies and gentlemen, I’m showing no further questions in the queue. I would now like to turn the call back over to Alex for closing remarks.
Alex Saigh: Well, again, thank you very much for your patience here. And it’s a end of the year call. So it’s a little longer than usual. So thanks really, really for your patience and dedication to come to the call, participate in the call with your questions. We’re so happy to take your questions that an honor to take your questions. And again, we feel very good beginning 2024 now in a strong pace with the guidance that we already mentioned over the call here a couple of times. So feel free to contact us with any further questions. And hopefully, we’ll see each other in person in your conferences. And actually, sooner than later, we’re going to have in the next 60 days on the earnings call and hopefully coming up with good strong news on 2024. Thanks again for your patience. Thanks for your collaboration and see you guys in person soon. Thank you team as well, and thank you, operator.
Operator: Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation. You may now disconnect.
