Ryan Lynch: What was the level of accelerate — so maybe what was the level of accelerated fees in the fourth quarter versus what you guys have timed. I know it’s lumpy but sort of an average run rate that you guys would expect to experience.
Robert Ladd: Todd will pull it up, but I want to say roughly $0.5 million or more in the fourth quarter than we’re expecting in the first.
Todd Huskinson: Yes, that’s right.
Ryan Lynch: Okay. And then just my last question, and I know you talked about kind of portfolio growth expectations for Q1 as well as where you guys expect to operate kind of throughout 2023. But I was just curious as kind of a thought process. You guys are one of the more highly leveraged BDCs on a total leverage basis, not from a regulatory leverage but a total leverage basis. Rising base rates have really significantly benefited your portfolio and allowed significant growth in NII as well as your operating ROEs. Has there been any consideration to lowering the total leverage level, which obviously would reduce ROEs. But since ROEs are so high today given rising base rates, you could still generate a very strong operating ROE. Has there been any consideration to using this higher base rate environment to reduce overall total leverage on the balance sheet?
Robert Ladd: So Ryan, we really haven’t focused on it. And I think the reason is that if you think about the leverage that allows us to go from the low 1s to the low 2s. It’s the SBIC debentures. And so those — so this is, of course, our shareholders are benefiting from our 2 licenses with the SBA and the lower cost of funding that we’ve effectively been locking in now for some time. So if it were non-SBA leverage that had different terms and different maturities, shorter maturities that would certainly be something to consider. But we think this is the right leverage. So think of it, as you say, is 1:1, excluding the debentures; a little over 2:1, including the debentures we think this is the right way to operate and really reward our shareholders for being with us so many years and now benefiting from this interest rate environment.
Ryan Lynch: Okay. Yes, I understand that. I was €“ because I kind of think there’s maybe 2 ways to think about it. One is we want to generate x minimum level of ROE and to the extent that we get significantly above that we can toggle back risk by decreasing leverage on the balance sheet and still generate a healthy ROE. The other one is we’re going to put a certain amount of leverage on these assets that we think are appropriate and the ROE will toggle depending on various factors, including right now, base rates being €“ have a influence. So it sounds like you’re more in that latter camp.
Robert Ladd: I think that’s right. And then if you go back 2 years when we had a different rate environment, we thought this was the right leverage to operate at. So this wouldn’t change our opinion. Now if we felt that macro factors were much riskier and we had great concerns about other matters, then we’d be prudent, Ryan, to look at reducing €“ and in that case, the leverage we’d reduce would be our regular way leverage, like under a bank facility. But we currently operate that facility. It’s borrowings in the low $200 million and it has commitments up to $260 million. So we’ve got capacity there. So I think that’s part of our calculus is that a fair amount of regular way leverage that’s unused and is there for unfunded commitments, et cetera.
So I think we’re at the right spot. But it’s a good point to raise, and we’ll certainly consider over time, but we think our overall view of the economy and our portfolio would indicate that this is still an appropriate leverage level.
Operator: Our next question is coming from Christopher Nolan with Ladenburg Thalmann.
