Kyle Brown: Yes. You can ping-pong this, guys, a little bit here. But I’ll start, this is Kyle. I think we have seen a lot of interest. I think that will continue to be an M&A. We’ll see M&A increase in that category. I think the IPO and kind of traditional exit market, public markets are probably less interesting for the time being, but I think private equity is absolutely sniffing around and you might see more of that here throughout 2023.
Steve Brown: If you look at our Q4 the early repayments was pretty much a low watermark, I think set it 14 million, Dave?
David Lund : 14.8.
Steve Brown : 14.8. So, which makes the $0.62 even more impressive, right? Because it wasn’t built on early repayment fees. We don’t see that materially picking up in Q1. But maybe second half of the year, I think we’ll see a little bit more activity. That’s what the crystal ball says, but we don’t really know.
Operator: Our next question will come from Casey Alexander with Compass Point.
Casey Alexander: One is a technical question and then one is more of a broader picture question. Firstly, the technical question. In relation to Hut 8, normally, if it equipment finance loan prepays, my understanding is that they have to prepay the principal and all contractual interest payments that would have been due to the end of the loan. In the case of a merger, where you’re calling for a payoff, is it the same or do they just have to pay off the principal?
Kyle Brown: Casey, it’s Kyle. We are — we can force pay off and they are on the hook for all future payments.
Casey Alexander: Secondly, from a bigger picture, it’s obviously a volatile time in venture capital and venture debt. I mean, we’re seeing that with most of the earnings reports. And we’ve seen that with your results. So from a strategic sort of sense, do you think it’s the right time to be intentionally running at the top end of the leverage range? And do you think by doing so is it your opinion that credits going to improve over the next two or three quarters?
Kyle Brown: So a couple of things. I think A, the JV provides us with liquidity, right? We believe we’re also going to be able to recycle capital in the BDC. The portfolio as it is right now, even with these non-accruals is generating a significant amount of income. And we believe that will continue. And then the additional off balance sheet activity that we are in the process of raising right now is really going to fill up a nice void or just help — continue to help us provide incremental deployment. So that leverage ratio is going to swing between the ranges Steve gave you utilizing that capital.
Steve Brown: And also, we’re going to start seeing some of the loans come off of interest only. And so we’re going to be able to recycle some of that capital back into the marketplace to support our companies and continue investing. So it’s a time for good opportunity, Casey.
Operator: At this time, there are no further questions in the queue. So I would like to turn the call back over to Steve Brown, Chairman and CEO for closing remarks.
Steve Brown: Thank you. And again, thanks to everybody that dialed in today. We appreciate your support. And we’re excited about the results for 2022 in the fourth quarter, and we look forward to getting back with you at the end of Q1 to talk about how we’ve done. Thanks, guys.
Operator: Thank you, ladies and gentlemen, this does conclude today’s teleconference and we appreciate your participation. You may disconnect at any time.
