The growth in private credit will continue. I think we’re very well-positioned for that. We have about $130 billion of private credit assets, which makes us one of the largest players. I’ve said publicly, we have aspirations to continue to invest and grow, and we see a number of places where we can do that. We’re very focused on that. I do think it’s important to highlight that we’ve not been through a credit cycle in a very long time. And so while there are lots of private credit players that continue to grow and expand, how those platforms and those businesses will respond when we do go through a credit cycle and we will go through a credit cycle, is a little bit unclear at the moment. But I think strategically, we’re in a very, very interesting position because we have the ability to marry for our clients both our capabilities in the syndicated market and also our private credit capabilities.
And you can see that. I mean, I can point to a transaction that was done in the last — in the last few months we did just that. And in fact, it wasn’t just in credit, it was in equity too, you can look at the Endeavor transaction and you can look at our ability to participate and lead both as a syndicated lender, but also as a capital provider across the capital structure for our investors as an example of the way that I think that our franchise and our platform is differentiated. Denis, do you want to add anything to those comments?
Denis Coleman: Sure. I think it’s well-covered. I mean, I think there was — there’s been a lot of discussion over the past of the — past year of sort of private credit versus syndicated alternative, but the reality is, the syndicated alternative didn’t really exist. And so it was really just a discussion around private credit. With first quarter activity levels, you now see a viable, functioning, and healthy syndicated loan market. The vast majority of the activity was actually refinancing. A lot of that refinancing was refinancing private credit capital structures with the more attractive pricing available in the broad-based syndicated market. So the reality is, these are all just forms of credit made available to different borrowers.
And over time, I think there’ll be a much more normalized mix where you’ll see underwritten as well as directly lent solutions, in some cases, existing in the same capital structure. And I think we’re just in a healthier environment, but from Goldman Sachs’ perspective is positive because the data points that we now see across the leverage lending market make sponsor estimated weighted-average cost of capital much more observable and that should unlock their ability to start to price and put together transactions that should fuel some incremental sponsor-related change of control activity. So, I think the sort of two markets functioning side-by-side is good in terms of activity and what it means on the forward for Goldman Sachs.
Steven Chubak: Really helpful color. And for my follow-up, just on capital management. CET1 continues to build, you’re well in excess of the regulatory minimums, the direction of travel on Basel III in terms of expectations around the proposal is certainly more favorable. At the same time, it now looks like you might be more constrained by the SLR, which declined to 5.4%. I know that’s never intended to be the binding constraint, but I was hoping you could just speak to how you’re managing to leverage constraint, which at least appears to be binding at the moment, and what we should expect in terms of the pace of buyback and whether that actually informs your expectation there.
Denis Coleman: Sure. Thanks, Steven. So, yes, you’re right on all counts. Obviously, we have a variety of both capital and liquidity ratios that we manage to over time. The SLR is a slower-moving ratio as you know, but our bindingness can move back and forth between various ratios over time. And we have a bunch of levers that we can pull with respect to our activities to manage that. But I appreciate the question.
Operator: Thank you. We’ll go next to Devin Ryan with Citizens JMP.
Devin Ryan: Great. Thanks so much. The first question just on kind of maybe a bigger picture on the wallet share in Markets. I know this has really been ongoing work for the firm and obviously, not just the quarter, but really the past few years, this has been pretty consistent story. So, if we kind of move aside financing, love to maybe just drill down on some of the individual products that are accelerating in Equities and FICC and where you’re most pleased with the execution that has occurred over the last several years and then still where you see the biggest room to close any gaps that are maybe still there. Thanks.
David Solomon: Well, at a high level, and this was one of the things that we observed and I think we got right over a period of time, that we started with the top 100, we’re now focused on the top 150 clients in this business. The top 150 clients provide a very significant portion of all the activity in this franchise. And so your share with them and managing the share with them has a big impact on your wallet shares. I think the thing that we’ve done well and that we see is really the case is that they all operate across all products and all activities and all silos and the ability to create a very seamless experience for them across the firm is a big change for us versus where we might have been a decade ago. And so it’s something we’re very focused on.
