And as a result, we’ve sort of gravitated toward — outside of our generalist approach, we’ve gravitated toward a few verticals, and we’re seeing healthy deal flow there, in part because of our, as I said, business development outreach, but in part because those verticals are holding up well and there’s still a fair amount of activity within those verticals, which would be certainly software-related businesses and SaaS businesses that are across a wide variety of industries. We certainly have expertise and a reputation that gives us healthy deal flow in that market. And then outside of that, we’re also focused on health care and education. And so we’re seeing healthy deal flow there. Now because a good portion of our portfolio is invested in those verticals where those businesses are continuing to grow, and they are — have an appetite for more capital.
And that’s where you see a lot of that follow-on activity. But you’ve also seen that we’ve added additional portfolio companies as well, and that’s just reflective of healthy new deal flow that we’re seeing on new portfolio companies.
Erik Zwick: That was all very helpful. And any color in terms of, I guess, kind of, what’s moving more near-term through the portfolio — I’m sorry, through the pipeline and contention close in terms of kind of new opportunities versus follow-ons?
Michael Grisius: It’s a healthy mix. I think it’s really hard to predict that. I think as you’ve seen, our portfolio — our investments in new portfolios are really a reflection of how strong we think the business investment opportunities are. We have historically had some quarters where we actually have not done any new portfolio investments. And it’s just because we haven’t seen anything that’s worthy of investing. And there are other times where we’ve had pretty significant investment activity. Right now, we’re seeing a lot of opportunities, especially ones that we’re delighted to see that fit our SBIC III, which has lots of room to expand.
Henri Steenkamp: Yes, Erik, you will see historically, follow-on has always been a really, really important part of our origination story and our growth story. And I don’t think we expect that to change. But definitely, our focus is SBIC III at the moment as we have a lot of capital to deploy there.
Erik Zwick: Makes sense. And last one for me, really just kind of a maybe a recordkeeping one. Do you have the value of the spillover at the end of the quarter?
Henri Steenkamp: No, I don’t. We disclosed it. It was around $20 million at the end of February, which we disclosed in the 10-K, but we don’t generally disclose it on a quarter-end basis.
Erik Zwick: Got it. Thank you for taking my questions today.
Michael Grisius: Thank you.
Henri Steenkamp: Thanks.
Operator: Thank you. And I’m not showing any further questions in the queue. I’d like to turn the call back over to Christian Oberbeck for any closing remarks.
Christian Oberbeck: Well, thank you all. We very much appreciate the support of all our shareholders, and we look forward to speaking with you next quarter. Thank you very much.
Operator: This concludes today’s conference call. Thank you for participating. You may now disconnect, everyone, have a great day.
