Rob Sharps: I’ll just say a few words with regard to expense management. We’re trying to take an approach that really reflects our long-term priorities. We do want to invest against our strategic initiatives and invest for growth. We want to invest in our talent and maintain our culture and have the ability to be central to our clients and reach more clients. In order to do that and sustain profitability in various market environments, we’re going to have to be more efficient, we’re going to have to be better at prioritization, we’re going to have to make space to invest in and acquire new skills. So, we should be able to drive additional savings through process improvement and optimization over time, but we’re going to want to be able to use that to invest in our business and to put the company in a position to be successful over the long term.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Craig Siegenthaler from Bank of America.
Craig Siegenthaler: Good morning. We’re coming up on the two-year anniversary of the Oak Hill acquisition announcement. So, maybe this is a good time to provide us an update on the M&A effort, and also get your thoughts on potentially acquiring another private markets manager, maybe one with a focus on real estate or infrastructure.
Rob Sharps: Yes, Craig, good morning. Thank you for the question. Look, our priorities with regard to M&A typically don’t change quarter-to-quarter. We are constantly evaluating opportunities to add new capabilities that we don’t currently offer and that are important to our clients. We typically evaluate that relative to developing something organically. So, we’re evaluating strategic opportunities. It’s a stated goal of ours to build our alternatives business over time. So, it’s natural that as opportunities present themselves in areas like real estate and infrastructure, as you suggest, that we would evaluate them. Look, we’re only going to do things that we believe are compelling. We’re only going to do things where we believe there is real cultural fit.
We want to associate ourselves with investors and teams that are performance-oriented, that are client-focused and that have a long-term orientation. So, when those opportunities present themselves, we’re going to do work and, ultimately, feel like — ultimately determine whether or not we should engage and do more work and whether it’s something that we might move forward with. There isn’t anything that’s imminent right now, but this is an active time in the industry from a consolidation perspective. With regard to OHA, the Board and I continue to be very happy with the acquisition overall. I think the market backdrop is a little more challenging with regard to capital raising and deployment across private markets, private credit and private equity, but it’s a moment in time.
I’m very enthusiastic about OHA business in the long term. They are talented investors with solid performance and a very strong reputation and great client relationships. I’m also encouraged by the work that our distribution teams are doing around the globe as they’ve spent time learning OHA’s offering and they are beginning to bring new opportunities from our client relationships to OHA. Last thing I’d say about this is I’m really excited about our joint BDC, where we’ve noted we’ve secured $600 million of seed cap and are building a pipeline of intermediaries to partner with for distribution. Again, demand is muted in this space right now. But we think it’s a compelling product. It’s an area that we didn’t serve in the past, either T. Rowe Price or OHA.
So, we feel like we can have a preeminent product on those platforms when demand for the private credit BDC type vehicle comes back.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Glenn Schorr from Evercore.
