Robert Ladd: Yes. So maybe take them separately. In terms of portfolio growth, again, as I indicated in my remarks that we have seen a slowdown, and I think others are experiencing this, but at the same time, seeing very interesting opportunities that our pipeline is growing, just a matter of we’re very selective, as you know. So I would expect you’ll see continued portfolio growth. We’re targeting to take the $888 million or so up to at least $950 million based on activity over the next six months or so And then in terms of equity realizations, your point is a good one. So the equity – overall public equity markets have been somewhat muted lately, seemed to be rallying the last few days. So this certainly drives exits, but it’s – they’re typically not to a public offering, but rather it just influences market multiples.
So we found that the equity realizations are more company specific and tied to what the private equity firm is able to do with the platform and now has achieved the time where the significant EBITDA growth and they’re exiting the position. So although it’s become a little bit muted, we would expect it to pick up. In part, Robert, just because of the vintage of some of our portfolio that – and one thing I didn’t mention in the remarks is we went back and studied the history of the equity co-invest portfolio. And it looks like on average, there – they’re realized in just over four years. So we have some positions that are longer than that, which will drive eventually from historical math that we’ll be having some coming up again in the next year or so.
So I’d say they’re different. And of course, the cash that would come from the realizations would be very helpful because it’s not earning a coupon. So we would, of course, reinvest the cash that came in from realizations into principally the loan portfolio and again, with about a 5% typically co-invest that’s attached to each new loan.
Robert Dodd: Got it. Thank you for that color. Appreciate it.
Robert Ladd: Yes. Thank you, Robert.
Operator: Your next question is coming from Paul Johnson with KBW.
Paul Johnson: Good morning. Thanks for taking my questions. On your comments on your internal credit ratings on the portfolio, I just want to make sure I’m clear. I think you said 14% was rated 3 or below – I think rated 3 or 4. Is that on cost basis? Or is that on fair value?
Robert Ladd: Yes, Paul, that’s based – all of those are based on fair value.
Paul Johnson: Got you. So I – obviously that includes non-accruals on that list. I mean, is it fair – I guess, are you able to offer any other color on those – any other portfolio that kind of falls into that bucket in terms of performance kind of outside of the nonaccruals, I guess, that are included in that number?
Robert Ladd: I would say that the percentage there is about normal over time so not anything is – I think Todd said earlier, not that would indicate a broader concern about the portfolio. So we always have a number of handful of risk grade 3s that we consider somewhere like on our watch list that we’re working through. So not any material difference than in the past.
Paul Johnson: Okay. Got it. And then I guess from your – the performing part of your portfolio, what have you guys seen so far in terms of amend activity relief requests. Has there been any sort of instances of amendments just for credit relief and any trends that you’re seeing there are notable?
