Mike McCabe: Thanks Scott. And to that point, we don’t really see ourselves adding anything we are currently doing, rather I think strategically, we are looking to either augment something we are doing or accelerate perhaps something we are currently doing. And we have a track record, as you know, for acquiring and integrating large senior teams around the world. And the most recent acquisition of Greenspring, I think it was a good case study and a working example of how we augmented our existing venture capital base and accelerated our growth to $22 billion of AUM with that transaction with a deep team that had a 20-year track record. So, we got to look at Greenspring, has a pretty good case study that would point to as to what we are looking for.
I think strategically, we remain opportunistic. It’s not like we have a stated goal of rolling up the industry or any asset classes. But if we see something that’s interesting that would fit in well culturally, would drive synergies or growth in some form, we remain active and we remain engaged. I would say in terms of the current market environment, and €˜20 and €˜21 were pretty busy years, as you know, €˜22 saw a pretty significant slowdown across the board. €˜23, we are starting to see some early activity that might be going on, but it’s still pretty soft, and we don’t expect to see much M&A activity this year. But perhaps as you move into €˜24 and €˜25, opportunities could present themselves and will remain open and engaged.
And I think we have a pretty good reputation out there for being able to bring on large senior experienced teams.
Michael Cyprys: Great. Thanks for that. And just a follow-up question on the FRE margin, continues to take a little bit higher here, at least sequentially 33%. So, I guess what’s the scope for that margin expanding into the mid-30s that you have spoken about previously? What would be the timeframe? What would it take to hit that? How are you thinking about margin expansion opportunity?
Mike McCabe: Yes. Thanks Mike. It’s been great. When we took the company public a couple of years ago, we were in the mid-20s FRE margin. And really, it was through a combination of scale economies, either through organic growth or inorganic growth through M&A, we have been €“ you have been able to expand our margins by 600 basis points while growing the top line and bottom line. So, we feel very good about the combination of both our growth and our ability to expand margins. I think at the time when we took the company public, we had guided you and everyone that we felt that medium to long-term, we would see ourselves comfortably in the mid-30s. And as far as we are concerned, we are on track. And we feel good about finishing up this year in the low-30s, and we would hope that scale economies continue to build as we grow our business globally, and we will continue to see some margin expansion over the medium to longer term.
We don’t have a stated target over a stated timeline. Scott, Jason and I continue to make a strategic balance between managing the firm for growth and profitability and doing it simultaneously. And we remain focused on investing for growth in the medium and long-term. So, but we appreciate the question, and we are thrilled with the way things have grown as we had hoped.
