Peter Heckmann: I have several kind of related questions on the healthcare segment. Could you give us an update on the progress of DomaniRx and any additional conversions that have occurred year to date? One, was curious, I don’t really think we see the numbers based on your explanation, but Change Health Care, which is one of the prescription processing hubs, had a malware attack and curious if that affected the healthcare business at all in the quarter. And then, lastly, would you expect that healthcare segment to be up or down revenue-wise for the year?
William Stone: Yeah, that’s pretty insightful, Pete. Yeah, Change Health Care has been a nice supplier of revenue to us that we’ll start seeing in the second quarter, somewhat in large chunks. So we’ve already sold it. We’re already delivering. We have a number of pretty big scale clients, including some of the large scale drug manufacturers. So we’re optimistic about where we can go with this. DomaniRx has held up great throughout the four months it’s been in production. We get almost no defects. We get great client feedback, and we have lots of new business that’s going to go on at DomaniRx over the next eight or nine months. And we’re optimistic about our pipeline.
Peter Heckmann: Just in terms of like the revenue growth for the year, do you think we can get back to positive revenue growth this year or we’ll be thinking maybe more 2025?
William Stone: I think we’ll be positive this year. Whether we do $295 million or $300 million, probably somewhere in that vicinity. The one great thing about healthcare is that there’s lots of revenue to be had, so you just need to go execute. If you do that, you’re in pretty good shape.
Operator: Your next question comes from the line of Jeff Schmitt from William Blair.
Jeff Schmitt: Are you still getting price increases kind of above normal in any of your businesses? And how much did pricing impact organic growth in this quarter and the last?
Rahul Kanwar: Yeah, I think as we’re getting more disciplined, as Bill pointed out, and more methodical about this process, what we’ve also been able to do is put the price increases in the contracts on an automatic basis. So it’s not as much of an effort and everybody expects them. So in 2023, we think we got about $150 million in price. Our expectation for 2024 is probably a similar number. There’s a little bit of art as much as science with the renewals and what constitutes price versus upsell and those kinds of things, but that’s about what we would expect for the year.
Jeff Schmitt: Just back on alternatives organic growth, I think it was 5% or 6% in the quarter. You mentioned the private market slowed. I think you’ve been growing over 20%. It dropped down to 10%. What sort of drove that slowdown? I thought you’re getting 5% or 6% price increases there last year, but what sort of drove that slowdown?
William Stone: Yeah, I would make sure that we all understand the jargon we’re using. When you talk to private markets, that’s a number of different flavors of private. So private credit in the first quarter probably grew significantly more than 10%. But when you put it with private equity and maybe our real estate business, then it all averages out maybe to 10%. But private credit has been quite strong.
Rahul Kanwar: Maybe another way to look at it is if you look at the AUA change, you’ll see we’re at $2.4 trillion. So there’s really nothing in the underlying growth of any one of those areas where it’s not growing at least as well as it was before. And as a matter of fact, we think our hedge fund business is growing better than it did last year.
Operator: Your next question comes from the line of James Faucette from Morgan Stanley.
James Faucette: Just wanted to quickly check on, from a capital allocation perspective and M&A pipeline. Bill, there’s clearly capacity here for some leverage. And you called out a senior hire to assist with M&A last quarter. What does the deal pipeline look like right now and what kind of assets should we think about you targeting?
William Stone: Well, I don’t think we’re looking anywhere differently than where we are today. And so, I think you guys at Morgan Stanley and a number of others, UBS, advised AssetMark and GTCR. AssetMark would have been a target for us as well. And I would say those types of companies could be targets. I think the things that are in fund administration, we’d still buy and buy pretty quickly. And I think there’s opportunities. Again, we’ve probably done five or six liftouts. And I think we would continue to do those.
James Faucette: I wanted to ask kind of a technology related question, especially tied to the transfer agency business. Some of the asset managers we talk to or look at their transcripts and other public commentary are speaking to the impacts of tokenization and their ability to drive down transfer agency costs. Do you think that’s more anecdotal in nature, or how should we be thinking about medium to long-term growth algo of your transfer agency business more broadly?
Rahul Kanwar: We’re seeing a little bit of that. Most of what we’re seeing is clients piloting certain things that they want to do in a tokenized format. And we have a couple of clients that we’re collaborating with. But right now, it does not have a significant impact on our business. And honestly, it’s probably too early to even view it as any kind of a significant trend.
William Stone: And the other thing I think, James, is that what we have done is take our transfer agency and our capabilities in alternatives administration to now retail alts. We combine those two things. And we’re not selling you one or the other. We’re selling them as a bundle. So if you just want our transfer agency and want to give your administration to somebody else, we’re not taking that business. So that discipline and that ability to have a product that is superior and then making sure that we’re the beneficiaries of that superior technology when we sell it. So that’s been a pretty good market theme for us as well.
Operator: [Operator Instructions]. Your next question comes from the line of Kevin McVeigh from UBS.
Kevin McVeigh: Congratulations on the results. Hey, anything to call out? The intralink growth was really, really terrific. It was 23%. Actually, a big increase. Anything to call out that drove that?
