But I really think this is a process that really plays out two, three, four, five years. And I think it really is as simple as the regulatory community doing their job to identify where they feel their systemic risk and really not the best liability asset management, which we’ve seen already in a number of cases. And in private markets, as you know, we have long-term capital and the ability to deploy that capital. So I think there’s sort of two phase. It’s like a quick phase where you see maybe a flurry transactions over the next year. And then you see a longer term settling in where we, as Carlyle and other market participants, we can provide — we provide very valuable capital to borrowers and to the economy. Where that plays out? I think that’s in the full gamut.
I mean, we’ve already seen it sort of in leveraged loans and sponsor lending, that’s a multiyear. That’s an old process. And I think it will continue to extend to those most heavily weighted — risk-weighted assets, could be in the asset-backed market. You could see things in consumer loans. Certainly, this is going to take multiple years, but we’re going to have to work through as an economy and as a system, the real estate debt that exists out there. So I think it’s going to be very broad based. But I actually think, again, the longer-term opportunity set ends up playing out over multiple years.
Operator: Our next question comes from Brennan Hawken with UBS.
Brennan Hawken: So I appreciate the focus on expenses and definitely encouraging to hear your messaging there. So curious how you strike a balance in between discipline and efficiency? And I believe there were some onetime items in private equity in the quarter. Could you maybe help us size those so we can understand what the right base is to think about moving forward?
John Redett: Yes, Brennan, it’s John. Look, we’re very focused on expenses, but we’re more focused on growth. We do see more opportunity for some expense savings. We’re not going to be cutting anywhere near the point to where it impacts growth. We’re very focused on growth. In terms of the G&A, I would describe the beat of kind of $20 million-ish as roughly $5 million was more a result of our focus in work around G&A expenses. The rest of the $20 million beat — the $15 million-ish was really more one-off items that likely won’t occur again in the fourth quarter. And as I said in my remarks, we do expect the fourth quarter G&A to trend higher than the third quarter, but we’re very focused on managing our G&A number in the fourth quarter in 2024.
Harvey Schwartz: I think John said it perfectly. I think this is about two things, high level. One is about operational excellence. And as John said earlier, there’s nothing sacred. And so we’re going to be exceptionally disciplined. I think the other thing is it just creates a lot of operational flexibility to invest in growth. And growth areas like wealth, parts of credit, insurance, those are areas where we’re going to make sure that we have the resources to participate. But it gives us a lot of operating flexibility. I’m really pleased what the team has done in a short period of time to come up with $40 million of run rate savings, which we’ll keep building on, I think, is — again, I give them a lot of credit.
Operator: Our next question comes from Brian Bedell with Deutsche Bank.
Brian Bedell: And, John, thanks for the — just building on, I guess, on the last answer on the expense side, thanks for the nonrecurring disclosure there. The $40 million run rate savings is — if you can just talk about, is that starting in the fourth quarter or is that partially in the third quarter? And then just as more structurally as we move into 2024, I think you mentioned you think you’re in the early innings in this regard. Any sense of whether that — you think that you can keep that line either flat or down? I know you definitely want to invest for growth. And then just any commentary around that $40 million between G&A and compensation and whether any change to the compensation structure is contemplated for 2024 or is being worked on at this stage?
