Ares Management (ARES) 6 May 202020 Q1 Earnings call transcript

Good day and welcome to Ares Management Corporation’s First Quarter Earnings Conference Call. [Operator Instructions] As a reminder, this conference call is being recorded on Wednesday, May 6, 2020. I will now turn the conference over to Mr. Carl Drake, Head of Public Company Investor Relations for Ares Management.

Good afternoon and thank you for joining us today for our first quarter 2020 conference call. safe is everyone hope and healthy. We joined Officer and am Chief Officer. today Operating by Executive Chief Financial our Arougheti, Michael and Michael Officer I McFerran, Chief our

for Kipp Co-Chairman Benjamin, Special Bill of Opportunities; question-and-answer Head Co-Head our our the Scott Holsinger, Private In Private Credit Group; Head of of Estate and will Co-Head Bennett of our Joel Rosenthal, Equity addition, be Alternative of Group; Graves, Deveer, Real Equity Head Group; and available our session. Credit of Group

Before I made to are you during uncertainties our remind this risks filings. and SEC in including to we statements risk want begin, our that factors those identified call comments contain subject ad and forward-looking

any is such past statements. note results that a also not forward-looking actual differ we could undertake update Our Please performance of and materially future guarantee results. no to obligation

will accordance non-GAAP from in conference to in prepared a this measures During as principles. accounting considered or refer we be should isolation which with accepted call, generally measures not for certain financial substitute

fees the directly quarter of note fees. our to In addition, on refer Please the to reconciliations our first measures. I Part include presentation for of website Investor that Resources ARCC our the comparable available section GAAP measures most earnings please management

morning, an announced XX, on on increase XX, XXXX. nothing quarter June share, an The prior per of to $X.XX This this of any that to will note second offer quarterly Please of representing holders record XXXX dividend a we June our call over offer we of dividend paid XX% dividend. common year’s in or to Fund. be on our Ares an constitutes declared solicitation sell purchase interest an

XX. is XX, of our share, quarterly Series on June of preferred XXXX June also payable per record preferred $X.XXXX on holders declared We dividend A to which

call and quarterly to will Michael with highlights. I the turn business will who financial start Now, Arougheti over some

the are our of difficult unprecedented ever lives are proud drive I here Ares frontlines those our remotely who Thank the thank made everyone wish company professionals to with working transition of at all We firm been not to affected globe. this also are well you, seamless full than for first has these really thank and afternoon I challenge. the capacity. to been good and have times during communities those by and crisis. harder forward working employees thoughts responders, their functioning our Carl and the across at who to our be through want healthcare risking this our everyone. to We see on the more and we entire remarkable could team. It’s want

Convention our for McCormick nice patients management example, solutions period directly companies to care thermal and see Chicago’s our safe DuPage enhance health identity shelter-in-place COVID tracking of to technologies, and non-COVID communities which Triage cameras, throughout is for the so delivering through access and Center whether also controls in or convergent running contactless It’s high-quality as the portfolio it’s operations software. and an clinical many supporting delivering Medical, Center security

believe am defensively. I to few to Ares, we period are spend to this we With and going positioned offensively a on navigate respect both why that minutes uniquely

economic our past at and including a broad, challenging navigating And time, at are deep demonstrated is economic have we long experienced has environments. tenure, consistently during different team together we Our and worked Ares through as for cycles. very

increasing grew rates than annual and at through management X you faster the XXXX. XX% and XXXX to fees with growth As in period many know, of XX% any then compounded since year we of respectively AUM GFC from

collaboration. both and Our centers responding and for is first foremost of our is navigating now in respects? ideas framework we unique around through the it and well culture committee crisis platform what and flow recurring So, witnessing crisis days well. are to enabled early and to all point-to-point has many extraordinarily established town of cross-team our halls, meetings, us Information, This nimble navigate interactions. groups working market this and insights across

of that all solving you and exemplifies our on weeks and employee X we regulatory This of portfolio company to platform, of often portfolio across had what problems best opportunities pursuing also which health ideas government businesses, exploring to refer practices matters, geographies chain sharing ensure management, our cross power companies. our are calls us hear and as the technology, controlled issues, supports and have ESG, supply etcetera. We and public

of optimal more Now stakeholders. deliver are we for collaborative all our to culture outcomes than ever, our relying on

first detail. marked in Mike milestones financial that Our will further cover several quarter

Our results model. also reflect our tested resilient and cycle

was an increase quarter FRE million, year. consecutive same the of fee-related $XX.X sequential first our with of quarter of XXth last growth, The from period XX% earnings

addition highest public, second time the in and going since history In for first quarter first our also for record AUM new new fee FRE, our was record record record realized a to a billion fees, which crossed management $XXX the FRE margin income. reporting paying

to fundraising addition, off billion over quarter. In raised a strong start very the with during $X.X is

of but well to that forward. going supported positioned key strong not also only our I first us characteristics want certain do highlight business quarter results,

generated mark-to-market to quarter. outflows have management management past capital of and this long-dated insulated well fund fees from earnings us from end structures. we provides fee-related generally growing permanent dividends. that for This as management a with and business fees saw we great revenue are our and fee fluctuations experienced are limited visibility First, most centric closed capital our model, coming We primarily vehicles

possible. invest capital across Second, special opportunities permanent could flexible have we structuring liquid between in way regular us between and structures investing investing strategies towards volatility. distressed periods addition a as other had as to during mandates capital, and and long-dated and allows bias pivot and to illiquid or of to always This managing be funds

significant we billion first with funds with capital powder. to of generally we with and the are successor predecessor crisis available approximately went amount significant invest raising a We into $XX Third, the to and XX% dry funds funds dry about of quarter tend our begin run when to powder XX% deployed. ended

type sheet balance we light Next, excess in management we significant similar fund of the company also run level, model. at a maintaining believe liquidity and

have we many our For Instead, sheet earnings. grow a balance positions a have and that sheet large balance strategy pursued activities takes outsized focuses that we intended never to to have investments. core reasons, on aspired

Our or mark-to-market balance ever having available margin is us strong that sheet with leverage liquidity would debt $X.X similar over near-term fundings. no net of with no attributes meet require maturities, to calls other no leverage billion, and or

well potential this that growth market Our to capitalize present liquidity position us strategic to on us. opportunities should

realized driven net primarily fees And realizations closed from are last, by our our end performance funds.

meaningfully more volatile invest necessarily and related the not is credit-based deploy of or up values, difficult investment. strategies loss stability capital of Not more only unrealized and quicker On to any this risk that structure of on can assets value the is also our more means base they move when to monetize where forced reflective note, is by at a sellers in provide to point top while are expect would valuations future. in or capital definition up credit locked are long-term at over-weighted markets easier our equity investments resilient take the in capital price. last that Our and and down, but reflect we time to fair we funds in it the not in estimated

the phases company markets, markets. to of continuing led responded impacts and and March almost the all in impact shutdowns expect in yield I the COVID-XX impacting market how leveraged through markets, economy government the the healthcare phase, first then crisis and general equity will to varying to pandemic impact Ares prices. In nearly to beginning plans degrees. end each the spectrum turning across into of the and private severe in the triggered three disruption respond the the first risk we including the almost with phase. markets or we The disruption the in immediate It witnessed businesses Now, discuss liquidity has and and loan of the quarter, assets, to began high of every early

focused relatively percent such and as and and a “ground-zero” impacted we our liquidity we understand are certainly in first to value protect on AUM, not everything In could travel phase, oil our of industries, book. of and gas, heavily the we assets, retail, as exposure companies to to Fortunately, doing existing firm-wide immune. most needs the portfolio the have but this small leisure we

dry and we into cases in away it’s the a the began our we and actively believe unevenly trade On in significant been assets, where while markets is powder it using the recessionary are invest In it to now, to monetary stressed some stimulus albeit would economy, announced environment. front, dry significant what we powder investing and fiscal long second has slowly. the drawn-out to and and timing we retaining believe be phase

foreseeable capital In primarily environment at fundamental for not in extended industries. depth markets, odds general, private effectively performance strong the liquidity This to we many North period high-quality on markets. argue has to second there across response, future our equity demand monetary with reached significant plays and and economic in of companies affected capital we late the this reality. Liquidity continued stagnation March. markets rally economy. those fiscal our would of across But the order in This period soon credit is rescue market a are massive need began private focused could into or of be public result current certain an in market the it rescue America, companies recent and remains Asia. the in this yet to the Following volatility providing most been us a and segments meaningful and consumer-driven could which the markets Europe not impact has on with that and due for shock relationships be of

in opportunities We continue the some as find markets to liquid attractive well.

normal” attractive to We fully then less And once working work, and return to competition will we able prolonged a period environment. where with assets the percentage the envision is invest population at of phase, we in to to back market significant “new be in values. the expect companies third great would

flexible our the illiquid expertise in all our works the liquid invest markets that and well deep and research using ability with to strategy stages. private in believe we Importantly, assets

strategy to so history. investment particular why market Our we a strive environments in is which flexes diverse our of environment, company’s many

pandemic. even about the new have good this that Many fund continued the of have outbreak environment. The raising in access momentum is you our of fundraising after we

than real into of the received X our have together equity strategies of early funds estate And our then in of approximately during closed April commingled May, month across groups. of and more on March. credit, billion private additional example, inflows billion $X For capital $X we and and

continue We year the XXXX. in to fundraising expect strong

expanding new capital and larger strategies Ares been existing through clients in existing success past into to into relationships our by Our has part other driven re-ups strategies.

IPO. to have XX% existing Historically, fundraising each XX% year our accounted investors our for of since

direct our to accounted the are for This current more quarterly from as puts exception no on focused general in fundraising. re-ups was existing as position in adventitious managers existing LPs fundraising existing in quarter these our first virtual total The or us commitments environment new to funds funds. out XX% an of investors rolling competitive

number to large some can coupled in new We a a in environment. well market of with be successor invest are funds, that fortunate position funds with this actionable

global vintages Some performing I fund raised deployed last opportunities recognize and financial crisis investors of volatility. of think best and significant arise during were attractive investment that can periods our during the the

future opportunities This estate in discussed the private funds launched new includes next X funds, least Altogether, our private actively that and least funds. in commingled fund, private these U.S. within call or have real second take European capital the X our targeted senior special second X strategies lending large we at credit formats and at and capital, our direct markets. $XX can months. current be fund, or funds, of fund, the and junior pre-launch market, our Xth alternative funds billion equity our our to incremental February, of successor credit X flagship As corporate advantage represent to leading equity direct in all either distressed fund, XX in

public strategic efforts vehicles. fundraising managed other our and end funds will our accounts funds, strategic commingled and partnerships, with smaller closed also Our continue

funds market, set expanded a our many on investment market are in of are significant which opportunity making We dislocation. seeing progress of the are also the that fundraising current result as

rescue the this including investors actively half inception been of target the fund’s investments, team special with split which billion mind, resonated well invested exceeds have that closed distressed investments, more approximately special The the last even distressed opportunities with half Our we focuses $X most billion. for $X has in market. illiquid has billion which opportunities $X in deploying days. in With on investing, fund, privately on which in fund, invested secondary XX about the and of negotiating since liquid was capital in and current capital

capital first equity nearing We our close to a funds. meaningful private are X also flexible

flexible investment surprisingly significant our almost companies a high-quality current our can strategy opportunity the financial by investing. distressed pivots primarily path As focused their need and prudently chart for equity Not is stressed that a reminder, that this that the growth. help there leveraged capital and is believe between team investing to exclusively the had them from balance sheets on our the private as Ares environment, in a with liquidity such of in issues fund invest back to and/or sponsor we

has real focus the high-quality assets. the against raise we for closings also a target dislocation, $X.X midst the real estate also buying of PE of billion the our fund, This $X.X bringing additional stressed In estate on opportunistic held of strategy U.S. billion. total to-date

more closing and estate inflows PE our million fundraising through than We also $XXX the continued value real held fund debt €XXX quarter. first real with million our during first European the estate of another funds add

have in We interest credit strong our This investments. seen strategy fund focused asset-oriented an on pursues fund. opportunistic alternative flagship

stands allocates Given materially and This size XX% post that This in $X.X capital contained investment expanded market health launched also to includes an at fund and the mission. in profit $XXX least the charities. prior has total to education meaningfully raised increased fund global the fee pipeline the disruption, The performance COVID-XX. last set and approximately global health was fund the million sharing innovative to-date strategy’s of crisis opportunity and current year on this fund’s billion. was of charitable closed feature March global this at always

We of hit exceed future. our $X the expect or to target billion in near

private expect launched this European fund opportunities be just in our on currently Xth leading could fund leadership history. the set that our lending, Based we direct Also, this fund the week. commingled European largest direct in position our company’s we and

the The to year launched in be expected other in later credit early mentioned are funds that XXXX. I or

as a challenges significant can face. see, we the that So, you year expect despite investors fundraising some

first we high-quality in our alternative the direct credits invested sheet credit full mostly and credit our more drawdown across lending focused During quarter, and $X off and funds the balance billion, than platform as assets.

prevalent. we securities liquids in an volatility billion in very increase the Post ability over the the XX% were of $XX approximately year-over-year we in bringing COVID dislocations. to quarter, highlights last $X trading the year With quarter. were the extreme first than stress take represents market where liquid in the outbreak volumes of total also markets, active XX% treaded more and This billion March, trading dislocation in our most advantage of increase a to these quarter the in first and

financing or even now rescue acquisitions segments opportunities less for access is by markets investment can the highest the our use impacted companies private where best the of needing right opportunities disruption. to market Some to critical to sourcing an It once play gain quality pivoted now have advantages our roll. the capital again important greater for relationships into in

strategies pace deployment and have estate capital, QX across opportunistic not for boost and performance open throughout focus improved PE distressed, returns. and naturally and rescue many position us landscape our to as March. significant across structures real alternative real disruption which are the year with believe in credit estate our pickup credit We the business, we the a our across markedly future a performance occurred competitors Investments credit, businesses. And expect will banks credit, that from fund standpoint, to reflects spreads

public generally note, exceeded On a indices. relevant funds our positive market their

composite was X.X%. down Our equity private

respectively on and liquids from the strategies XX.X% side the lending and private X.X% equity Our between in direct side significant declined on declined credit and X.X% our XX.X% estate between and European and X.X% funds. to X.X% our anywhere strategies U.S. real

Importantly, on our our longer performance and investors fund much measure are over patient basis. realized and periods they a time

interesting the may entry course, volatility more opportunities fund also values investments points. make our Of to market at impacted long-term us that provide for

over some call the hand certain on activities. I to Mike, before strategic want our recently I announced of lastly maybe And updates to provide

Banking As late SMBC Financial the in We partnership been longstanding discussing you Sumitomo year. Sumitomo relationship can Through Mitsui had Japanese strategic mutually in market and partner with the Corp to with their rewarding Mitsui strategic had and for Group their base strategic of this we a distribution March. to partnership existing also broad we potential client over businesses. launch partnership, expect sheet and we a many saw, with balance grow formalized gain we for with us significant and to a help new

expect We earnings from time. meaningful a the partnership contribution over synergies

be of we equity long-term. partnership which aligned also SMBC, through accretive believe over the our common of X.X% will around a sale the to We interest

timing early our in environment, than can is it’s offense in crisis, are the a of capital that puts the to us in position capital strategic this days it hopefully even this While view would that been us. have equity with for before. highly coincided we investment our the scale play areas valuable This more business opportunistic where

now proceeding July Second, and in in expect our early approximately closing AUM. the is June billion Capital SSG we or transaction smoothly late $X with

excited Similar secured we opportunities onboard region are opportunistic and special to us, where in a the expect to bring very to at uninterrupted they very leading to a time have fundraising. be to continue We it invest. investor pan-Asian

call to which Aspida an insurance on wanted as you update our solutions provide Financial. I know, Third, initiative, we

third continue retirees environment. current volatile find the sector products building rollout as products environment investment struggle are and life We be closing, we to interest insurance low the been that to and rate to in will and as there an before in advantageous expect we alternatives of prepared annuity transactions acquisition be of many Pavonia and soon quality than second have After the insurance well. in the will more quarter interesting our to platform close insurance Life pipeline early opportunities a or quarter in acquisition and reinsurance

Mike and our And our detail that, results. now positioning over on for I remarks to with going more am call financial the turn on McFerran to business his Mike?

you and can you, what’s well. Thank the extraordinary I and justice joining of Hello, and of explain transpired everyone for No our all thank safe in months do words to call you nature are Mike. tragic and hope today. recent

locations has our my miss rooted by this interaction culture valuable the will the now. of evident from with I is colleagues. or Mike’s comments echo deeply While and offsite that platform saying doing in power it are more than collaboration right in-person with respective we a call our never been I

team combined global work truly operations our – remotely, from highly While teams to locations. technology continues operating and our our our highly culture with have incredible effectively a various

I key points in comprehensive financial more a position. results provide will remarks then start review our my quarter with of the some and and

asset and As billion. the Mike if earnings, with and XXth $XX levels our globally key milestones from portfolios highlighted, fee-related the as to some million, market dislocation value first across our fee-paying exceeding the broad been carry time all margin portfolio. represented reduced of new assets not our of a yearend most Valuations have and first quarter valuations XX% consecutive $XXX were exceeding management of reflected our to high accrued reduce fee-related quarter under net balance earnings impacted not growth classes decreased immune sheet our growing negatively our

our realization stated our stemming across market quarter our backdrop benchmark second Although report as real our our exceeded to and which valuations highest in were their reported us income realized for private Mike public is XXXX. primarily real businesses from private quarter estate equity indices the income estate equity realized of since million the $XXX.X IPO challenging Notwithstanding enabled a and strategies. credit down funds

first results growth million, detail. last Now $XX.X the represents of earnings the this translates I XX%from a quarter that for I more quarter will of quarter. through note annualized the will an for also increase quarter of an over into XXXX totaled in Fee-related quarter increase you the which X% rate take XX%

to been year on We year growth is grow achieve expenses a from raising year and that growing capital of activities management paying and words XX%. much of fees investing I good growth operating yet which fee deploying fees is earnings management of related to already expenses management growing for XX% revenue growth we has us will compensation shadow prior revenue AUM funds prior rent and we earnings of last the our are This are FRE versus AUM by margin cycle XX% highlighted reiterate reflected period to growth the XX% closed-end the grow XXXX. Fee-related the before that expect over XX% for fees our ramp the compared expense not capital driven the faster from combined however to revenue and fourth off or fees our our while our of which The and start other are to the more. or and from we of the the related and our margins of quarter to general and AUM enables financials. in we continue for our a by majority deployed first by expectation nature in of as fee reflected incur capital quarter expenses we year pays life year reflects to to XX% administrative is model

quarter we we reduced and we expenses notably most for expenses related expenses. believe incur current procedures. are from will result the travel reduced expect to administrative SEC insurance in With to margin results and to of of this continue related for expenses discussed we this the our G&A were matter would $X.X a XX% quarter to rate of expenses XXXX quarter’s I do margin the most approximately run this XX% expect million is to quarter. expenses Notwithstanding matter as offsets during we seeing a margin the better respect include achieve recognize related We reflected our that gave compliance this or We we guidance. highlight policies the last which second the quarter year a to all report recovery call this last we to want are XXXX. reiterating which accounts results million X.X that ongoing general of environment to certain

aggregate share, investments growing and our still net flat XX% we We technology the from year including year benefits XX% to of full first from operational be last should Mumbai X% converted below XX% to are preferred XX% realized $XXX.X estimate earnings common then the synergies do XX% capturing realized of be that for an XXXX. XXX% totaled an first Class common on our in increase these After-tax XXXX. appropriate our shares Class call was range of a range that to effective as we of were our distributions expenses stock increase we for the are XXXX. $X.XX last quarter, for quarter’s G&A per represents A that from to A Realized On quarter for million through compared or the the income income reported and opened our rates million we related of XXXX we to million $XX.X the estimates tax highlighted of $XXX.X office quarter think assuming expect basis XXXX. that income fee we for quarter that XXXX which or first

With respect realizations to one have is least net market term. for that a performance the general for favorable income near to that realizations was forward, backdrop from not we at moved going

making from more for adjustments earnings end of this related as million quarter While will investments XX reduce to there December accrued $XXX.X clearly opposed and as to realized far million grow to XXXX. value conducive fees anticipated exceed long at value gains harvesting of the XX, conditions term our market for March downward income to current future quarter foreseeable today. be fee $XXX.X are still year with did fair to the performance Realizations during net first as combined opportunities

a as you fluctuations affect performance-related position have which do is FRE. not know liquidity financial our impact Given our and dividend, in model, income FRE centric in business to minimal our pegged that

few me a let related metrics. AUM Next, spend minutes our in

this of Our $X.X the This capital were XX AUM agreements XX. at compared of income to of totaled quarter. $X.X funds totaling billion X% which AUM an is billion billion billion, by of and prior by the our at quarter benefited contract management acquisition market totaling $XXX.X billion commitments $XXX.X new increase and billion CLO at from our $X.X depreciation value from March during realizations distributions offset December $X.X year. from

do be year. the realizations the we to forward, expect Going pace muted bolstered throughout AUM partially of by

of Our year-over-year to meaningful increased over as upon AUM AUM investment. XX% amount AUM fee-paying our been fee-paying a to converted has

of the in over a milestone as $XXX time quarter ended We fee-paying our of which available great billion we with the $XXX it history exceeded first We fee-paying that with of a AUM, billion ended first represents of which have quarter the is AUM. capital representing billion, fees, billion $XX.X $XXX.X $XX.X of and million. end yet our is future of approximately AUM not billion AUM paying $XX XX% as totaling management for had of deployment annual quarter corresponding fees approximately available with

which culture in declines referenced. well at We capabilities, we The price source in wanted un-invested combination this diversified accrued $XX.X investment reduced fee I uniquely environment to long-term positioned performance a cover investments are quarters are AUM, believe performance ahead collaboration asset the previously meaningful most is end. importantly, positioned generating flexible make the ahead. to funds, sourcing the long-term that our has was incentive last performance fees. dry $XX.X is and quarter our net generation of in The patiently billion rooted was of us our will powder that fees quarter our years in we be the in proprietary broad future value and nature quarter of eligible believe deeply billion incentive metric at create I this totaled at for as Well, end. Of amount, $XX.X billion to

today call million $X.X equivalents of capital in available We sheet us billion with our This quarter revolving $X.X our the end, quarter no maturities cash our revolver credit sheet. cash to well very no do of mark-to-market balance in we to million. million than down, ended billion continue I to debt, and here handing to XXXX. our want Before debt against term balance pay our nearly billion We the elected drawn Subsequent address due have in financial in mentioned. reduce $XXX leverage. back borrowings Mike to quarter our sheet near cash end. $X.X balance quality Mike, excess as net position of $XXX sit facility gives to no as with and we in after on capitalized with more and and this $XXX And

time we of well pursue broad ahead. are will unusual capital to a in growth very nimble and focused be for to our We set be opportunities to equipped the leverage believe what strategically periods

call With of that, your back wish families I safety will you the Mike. this health and and I loved in hand time. difficult all and ones, to

Thanks Mike.

also model thrive So in business conclusion, be market in we continued our expect but resilient, what only well that will not positioned environment. volatile we believe a to

fee credit management to flexible these the light rise during centric organization a and the times. these and with occasion our periods rooted and in puts sheet our strong navigate in we to sheet shine volatile position model balance that strong through. balance It coupled our believe is us power Our platform strategies and model of

time unusual We share call to shaped key. we cycle, progress by well wishing I brought and to critical like to and look that that opportunities. access our on on this but safety just period management I echo one to forward we portfolio end quarter's soon, sourcing, work being are. open will It’s of team that with don’t health. a you not everyone investment up I'd also to to are lot last for time ahead like dedication And time and capabilities we yesterday is always we with having And but and survive, these where economic to today. appreciate the and and times long project comments would like be an your both you need view underwriting these and capital we weeks but support for survive, thanking in challenges, updating of and company its your U investment having hard that the unique to questions. we an Mike's believe with ensured couple operator, and entire last positioned rather and and as next interesting their of as simply recovery snapback all a anytime also with succeed

ahead. go with come from Lee [Operator Thank you. today Our first question Please Robert will Instructions] KBW.

I doing this well guys. everyone is hope environment. challenging Thanks in Great.

Good. How are you Rob?

as back maybe on of in color Yes thank may timing going more may fundraising, you be but lot maybe would have a kind versus of as but like fourth funds, impacted quarter your comments you what a of just originally bit kind feels on it you extra take call little could just happen thought thought? still give the you an going the be on larger Does the all some of granular the feel be like could a that appreciate you given or the of mandate, it how couple have quarters pace funds? particularly process quickly to may things flexible little to maybe or it around Mike,

Yes.

particularly size originally remarks prepared those well of so but kind we pleased been strategies now of just deeper into of as fund this that fund remotely closing the fact forecasting as the situations and have we're the actually are terms any given are now pacing actually special investors target challenges obviously could suited we in things you sit we doing we raising actually change working are that accelerated is get as not and we've not at everything scheduled seeing in alternative we're certain fund for not credit in as as As our of change opportunities today of that. heard as and where and seen like our with environment denominator here like current

do you that a levels did on Needed a or follow-up you a investors re-ups may environment strategies? given with being get on of sense be I the your just re-upping that, originally touch you kind point than thought at higher on focal are mean,

are invest come market I mean all that market to billion $XX soon totaling said are the X that to we in we over can well funds as Yes had distress. into

the we maybe I of some new just which are talked on reflecting think people crisis so and of nice and by a share are wallet over deep to are accelerating a a dislocation LP on the seeing to the I just larger of try there that's a prior And reupp relationship I need current investors manager. getting face I a nuances from more so if funds. managers Obviously, to good so pre meetings it's record strategies an you reup managers think actually choose an taking think that to is regs the to I advantage take actually in where some our to investors and of of certain for particularly focus reflection now. also commitments track we underwrite with have than face on easier to arching remotely think existing manager reupps selection pretty allocating easier an a existing an was some more larger this with our of There trend larger about think calls lot existing

for taking Great. Thank you my questions.

Rob. Thanks

next from question go Worthington with Please Our come Ken ahead. JPMorgan. will

banks the the good with to think a you maybe or in comments back as bank phases competitive you extent or you to sort morning competitors? are what here the other investments programs competitive any you In what return last afternoon on of flush opportunities seeing or good of government of the where to competition will as makes on Thanks. banks in actually were three Phase Hi you the banks accelerate you pull those depending the bigger think and what might less out X, indicated extent where discussion and as how can landscape accelerating of competitor landscapes regard the competitors on.

Ken. for Thanks Sure. question. the

just as have So, there we and managed what the a this through broader comment just from on just look that consolidation really end think seen back to through crisis. financial towards and share like clarify banks, competitors the about cycle comment, what is market will every of competition it set geared coming market the of more position wasn’t have we in I

of reduced in in see our and set. to with competition now. be expect would market across That reduced we we consistent entire seeing the what competitors are and the liquidity So, competitive with would the hands past consistent experience

for business, potential borrowers the of regard obviously, higher end leveraged active, particularly directly banks, in compete still of and them, we active size environment range don’t segments are of the this underwriting With but certain syndicating lending direct in the finance not with we are while our product. to needless banks say to

some moving have facilities actually board the still before investors happening and to commit or get world new the across repo think as banks I lines are. forward it’s you reduced the market most think put swap And or the in where from the facilities of this stimulus we liquid through banks. to been that corners as have I a appetite capital market, seen certain segments saw importantly there margin of are was

as would market seeing terms bank competitors head-to-head the are more what I providers of lending characterize liquidity us. we the So, in behavior versus lending into with

head-to-head don’t the so oops I competition ahead. about for bank have the asking our go not last regard think We historically on to business. been years the that With I sorry returning competed And to change. potential XX us in impact government and people have expect programs, really

but No, no I was to for going you continue. thank that, please

Sure.

I question programs and and whether increased banks the that competition think is think comment was would from no. the catalyze just around government I similar

those on that in think don’t busy others obviously and patient and are to way somehow the expect relative mandate loan competitive us. change from programs we their to busy government purchase But their managing obviously their position banks same the are the we then very I existing exposures program. policy executing

be the intensive lot to could fall makes what XX%, to Okay, reasons, on generating those credit thank assets in basis there you more Is in a It incentive deck, sort territory? you. generating? those a see returns obvious the then could AUM need And could for do assets into a back incentive we assets for sense. of return is fell of generating range back that narrow be it that point, side

separate separate or asset term are side, for earlier that pretty of credit lack lifecycles, capital. better these in the generating, most incentive of their are were that strategic much accounts fell accounts accounts on start of So, consisted that deploying out declining a of all or more

little So, fell they and think they valuations. you the again overall deploying them European while style don’t pref it the below of not changes also far We they capital think of We and again returns, a underneath all its more to waterfront. bit days It’s they volatile think IRR function are math are about cash earlier outlook funds. activity when for those. especially

Great.

probably Ken, as a the I on somewhere between and would and of rule it depends say, X.X% X% terms math build. the general end in strategy, on high it’s

single put point very wanted So it. view, you low to Mike’s digit. number a of It’s very, behind to

Thank for the Great. color. you

Please of Our go next ahead. Bank question comes from Mike Carrier America. with

Mike this Dean Stephan Hey, is for on Carrier.

and provide you are in for what impacted as travel more of to areas the can sectors actually on guys companies most of update other type of Just environment? and you portfolio support Maybe your just any maybe energy in terms an of and companies investments, view you this leisure? other and doing these exposure portfolio defensive just

Sure.

the can as we of talked have entire You about AUM – look waiting. think to best we about, AUM the way firm-wide are kind platform that at across and is of we kind exposures

gaming X.X% In of things landscape, energy and gas some of remainder but the and travel and not in invested is retail an speaking, AUM with only the actually which probably in firm’s around are the representation, broadly about directly broadly, inflated and is and in of is terms part like of includes leisure, may AUM – being our renewable and about that’s retail they X%, some X.X% oil exploration it’s about exposures that, aerospace energy of X.X% all because infrastructure. impacted, in midstream X% include

So to those decide specific are funds, will any are when upstream at between look midstream? to relative you kind to to But meaningfully as exposures indices, well. underweight. look they And at you leave it to those the exposures, of underweight to how were differentiate if public I and you relative want they you

no estate of in real have business, hotel example, any exposure an our funds. as So, we estate significant real in our

we portfolio of sold hotel fact, have XX actually investments over big months. In a last the

underweight where invested, these completely and of the platform. pretty un-invested across think we but well it’s So, it’s parts are be in hard are the to I we market, distributed

any to fund. So, impact going not it’s single

are involving can just opportunities Okay, seeing you market, and helpful. as given more a then those active great. of of on kind detail opportunities? areas in the given most the if deployment touch the the where maybe And follow-up recent And then market rally? a how you little are the attractive That’s just quarter,

we And senior line. a PMs Sure. have of bunch the on got our

busy provide of to provided we in the to back stimulus going little and So the bit framework but color, liquid first quite I phases before may came them the phase the support. backdrop different a obviously of a markets in of are ask the

how play to will just little our that similar assets want the So, a our private the own this the deployment about market it. way give when is said they are who Joel need prepared we maybe special our in on you companies bit have buying look providing through or transitioning offense remarks, then in was liquidity rescue give to markets. And business what to bit AltCredit bulk company, pivoted bridge Scott largely to March, ops into as of capital ask now thought color, into of buy as I and for it a that Graves running a secondary to we We in it “insurance” flavor doing maybe just a runs but Phase of little to are playing markets are there the at X. the we we

better the are. you where opportunities understand So, it think I will help

faster than the down was of with the XXs. March We XX private significant traded shock Depression is thought came the XXs and we pace what top March right securities across Ares Mike. in opportunities, than late cycle. compare to world of we market. down any stimulus color the Thanks on the a Great what the And faster of terrific on market in the beginning XXXXs relative traded down in at marketable of Scott significant buy it Mike liquidity, said, traded to This value structure faster in. it the presented faster bit through X. basis early down little focused on were ‘XX, the and or achieve That we Graves. that available capital can the and give have prices It seen plan very April public It invested the Sure. versus know look that market week cycle attractive ‘XX, generally you than opportunity what to than around a of opportunities the the traded

portfolio going markets. the the set muted a seen has private toward liquidity feels shifting as need their in the have markets cycle it their with almost as the order public and revenue at structure cost X,XXX line, bounce a like market. been we shock forms to attractive both and the public well to strongest they in be capital this We seeing And incremental companies of significant Companies and will driven different this that get through in we are are companies, view to Ares, and is share, where certainly to work access companies high focusing based to to on that’s And consolidate, make will is are offense take are put capital also focused. What’s ways capital cycle. to the return we about a opportunity to decisions. find on more invested

been it’s management improve private of their across get we opportunities firm think to about partnering end. the to and forward back how business of through ever and time as rich provide as to companies also them to capital strengthen they troubling as this coming the is to teams out with backlog really and look Our

Yes, Scott. It’s Mike.

the into or have a in sourcing, the just an maybe companies embedded securities us track about because in. close either but before, to portfolio think into mentioned the we offer that we unique position puts but we number putting solutions these of aside types marketable invested diligence the prepared not existing having that companies point I a in good remarks, portfolio it’s X,XXX of to

Credit can. focusing So, maybe into on want things of Joel, overview what the some of us think the which Joel, private to to most do we people quickly markets are that acute very probably just is seeing few it the Alternative are like liquidity does quick some one I to there. a – allow side, shock pivot quickly we on

weeks on tools, Credit, receivables across windows Holsinger. Thanks, in I of credit there is the in the markets. what think of if Joel do and Scott opportunities loans, there in This underlying secondary do the seeing was term of the that markets. lasting lack lending biggest And Their X mark-to-market where and what X where you is opportunities we in stuff Sure. liquid Alternative the repo you opportunity see opportunities downdraft basics think liquid leases we the as or shock are short from And and the of financing funds large. have pain seeing what as seeing some been liquid, lot small opportunities. as we a very semi-liquid market was the credit we but there there where type well windows Mike. created are of are or longer lot across with the the to a by the liquidity as mortgage ago, we rescue rates what both Yes, better was similar a and they to have And as the then created in in well have were are well there buy seen news. active alternative you those were as is we opportunities asset other will saw and opportunity

and where private but opportunity to where the able the short a is their table. to able in the out was basis. advance standpoint, that it very of bring and closed the to cost to the a the IRRs financing them it that a rate where solution of our solve a where some from had power to XX% higher to And there So, solution size go X% at capital, $XXX I effectively to have capital, mark-to-market of set they so type do was more of permanent reflective on a to deal million platform have be of the think on we much people cost brought repo term weeks the X% advanced low type can taking couple be issues in XX% of you lift ago, ability it’s just we they to and something

and is of of directly occurring pain liquidity of So they the from but liquid are coming of still lot the transactions, out sourced the bilateral that’s type downturn it swift markets.

Thanks, Joel.

have maybe helps you Dean, the more opportunity color probably but than always I for, bring it into argued life. think

guys. So, thanks

ahead. go Credit question come with or call Siegenthaler from Please Craig next Suisse. Our will

Hope doing taking well. all are my for you Thanks question.

Thank you, Craig.

on a have related I fee earnings. two-parter

BDC what its CLO quarter? the to you be could calculated explain first how these part, and Thank or us ARCC can too? calculate could And the the you. we fees these what and Part are Xs to trigger cause subordinated second defer in they from fees fees incentive fees can remind saw Ares like you First Carlyle how deferred

you the I part that, Craig. with first will well. are start Hope of

you On really, is have literally you actually is closer CLOs, sits top two AAA then the the a on at to sub the CLO the And fees. senior depending a and if is have There bonds. fee – the you fees somewhere deal the there which waterfall, about to fee think a subordinate on fee, management senior components is which recurring bottom.

an of higher in fees structured market our more from sub but quarters the the I'd Our three in similar than a used of you the comes so fees fees CLO usually others interest one say, at fees of our conservative a and senior OC seeing. management And percentage little between senior second, deals or our usually are fees, different tests almost for test. fees the as CLO’s senior so a blend little than approximately expect of least in diversion deals much our and is to XX-XX are sub to

size this I X it what was think maybe FRE far just us. over fees again CLO our amount fees as the it CLO’s maybe to of quarter perspective, is that kind from about call and compartmentalize sub about represent half it just means an of As X% just from X.X%.

CLO’s probably again loans overall by on them manage the minimize to about CLO’s and on quarters it admin want if. is highlight of would find approach we with heavily the whereas more we I they a that to. we won't see to some crisis up different think out be a to tests of spectrums we how of for lot what and tests rating CLO’s CLO’s the continue the managers ARCC, it points start enables just when fees fundamental I but are have similar about saw another around worst risk and X notably apologize last dire is be syndicated all as a referring the of was trying I scenario for may to downward this held the that’s for owned and that’s heard So the thing as deep parties, the of positioned financial picking on of most to on focused the going everything even to failing else On CLO’s was conservatively when just so think as to kind it at because about to and owned do of based if highest of some recall portfolio for all some last different the CLO’s were me the good I fee, our about managed time you little financial you we bottom half, OC Ares think were you're practical management just were prices CLOs, as to their be to of very of I all stressed great syndicated to whereas probably of ROE it three of you return scenario other have our the I are credit far crisis invading into it don’t over passing of an we remind the owned feel think, quarters quarter Downgrades again structure think to last different there the the selling $X probably pressure extent this purposes around. on us about the us a XX, one other were are impact last say think million to size were deals I commentary time diversion so so will comment X kind is by book think one crisis are draconian CLO credit compare how as on what financial as OC a the to than saw the I split Part to CLO’s pretty be what XX% to a that some we about time for about back on being failing by But XX we which more were great then of than around and the two think swap And you loans think half during I ended the

it, take can I Mike.

I the between the fee X was the think two mechanism we separate getting paid. structure important deferring they're earning be the and fee to that it's about I just earned think because important it the separate fee the and of ARCC two around deferral Part think and I differentiate getting calculations it's

fee basically to pay at went that the are of inherited it. not X X% that you quarterly then extent So protect looks is works part we whether fee and X% return against is that nuanced it's theoretically when which then about credit XXXX frankly the deterioration incentive to of as X calculated by it X%. earned, does against to public is extent the seeing to the compare the portfolio your also I it's kind said quarter part that way incentive hurdle that was what NAV think above designed the that quarter the a a it liquidity to income we to pre the the and to the hurdle There XX% mechanism or is this we extent be of deferral deterioration. is get fee payments reference DDC a X% in in and that And way for it shareholders

traps book able the But and is it a quarter new about it a to the unique incentive NAV. the the the calculation interest where could the four at back then and What’s therefore this is though and support gets the in payment dividend, the fee. earned the there on look is out fee we situations saw And later payment fee resets then date. of be and paid performing XXXX and it’s even paying of so cash and

what year trap fee, that you to new, a later it would that likely is out were if NAV starting when were that pay So happens hurdle. you basically in new

since a which look earned went the ARCC then So of it back quarter incentive has X come Part And at resets if you been then either or public. every is fee our NAV and history, just losses, the deferral function obviously unrealized your mechanism pays.

know I of if but was a it’s Craig, little that So don’t not, nuanced. a too complicated bit or

And our next…

reiterate, in we saw yesterday to deferral obviously announced not situation. Craig, and are I Just you ARCC earnings think a

operator. Sorry

ahead. next Jeffries. No, not a And question will O'Hara problem. Gerry come from our Please with go

with for Thanks required am perhaps credit, if question sure morning. generation on, Okay. respect question follow-up, the question but you touched his that similar not I I to private Ken’s comment eligibility, earlier my if could is equity that, I for on to was questions taking Actually would think this are incentive to side helpful? think

in pref three period. their again, carry funds investment fell flagship funds The their I I call in There private fell below think across businesses, would in incentive out of still our mode. is are estate funds, in those all only lifecycle. what would where funds equity, one harvesting that in Sure. but funds they the this all were of generating I They quarter three real call, returns, two and were of were our there

both crude today, are those and of equity end estate. at with still our most and funds is than concentrated you it investment with in was past look it’s private real If period where their year mostly generating carry at being

Hey, Gerry.

for our think incentive-related business engine. earnings tax Mike I model. reiterate obviously want of FRE our business we were on about we and our into earnings but back dividend performance-related for using to to part it’s to not a our remarks management is And talked I calls, earnings an rate prior what our compounded the pegging plan, the earnings core have in switch just talked part to where of the important we capital retain are as second, invest effectively predominant about prepared lower which model, and

in it’s the framework we think I against And so of manage important contextualize how sheet. the types balance P&L of the to moves those

are saw $XXX were that’s the to and of downdraft, that wave the funds obviously accrued sit from that go $XXX continue carry for But net it it what will to not million. grow not we at accounting that. you look immune basically while to new we behind And so million replenish is to the

actually I dividend. to the the worth doesn’t But at the attention or it’s that of it’s significant profit it. driver remind I Ares paying just not picture factor a So everybody support to into think it want of

will really And actually any I helpful question, are guess well a Okay, but one or reminder. made that’s period have current process two this through kind to to and broader of shone were crisis? perhaps financial or and time through changes this perhaps you we if managed very we from that or a shown advantageous business the is stated there have that as the are crisis, stage the better moved Ares of at wherever investment be into that

the If team but in is crisis is has I management I crisis been to will all along say response not prepared together each couple crisis. news familiar the about it we different of good things think talked and similar. tends but be navigated the the and senior the remarks and time

is of of muscle and there a a institutional learning. memory lot so And lot

liquidity and so the I into an than it with also Ares to focused for those unique enough that position pain is whether going companies feeling to mismanage who going short liquidity people liquidity liquidity suffer. that’s and think I or our very liquidity the allowing of heavily, and not crisis when portfolio one their about dislocation, ever falls seriously in think driven extended funds I is, we are at this the think are taking liquidity this period are and on think now I it’s what’s a liquidity we and more

be that in be even there the of investing have test judicious that the we and are of in bit being learned in can the is unclear never going to about though investing thinking more you way be, you these and we future along are we so bottom phases lesson in through and here the So capturing make And have all uncertain sure maybe terms why little you a that’s is the to the big to to how you think differently I long how time we are crisis. are opportunity. March not investing lows we how whether saw then are are or the they get to terms but liquidity

I what you access change see us seeing at us in from phase to is before obviously will in. market much are more more that, access have we the but So are we our years information, each going much are you us to diversified going depending and people, think the phases measured well XX were much on be is points that we ago. capital. from we that is data serves larger, than deployment more are just these we to I And more a what also we company more of how count which broader, of think

obviously we XX, relative are better you where subsequent in then when positioned positioned And we did are look where in but to much very so were and XX we're and place. we our just now, well at funds and years where

Thanks this Great. my taking afternoon. for questions

Thanks.

question Please Now come from Fargo. with our go ahead. will next Harris Wells Chris

Yes, thanks.

One seems businesses. is and the severe impacts mid-size recession this the piling So on last a it there. different on bit that other things small in question to

perhaps some at for capital. opportunities creating First elevated could good being ones middle the core access the Ares’s have time maybe risks. to present investment to market same really larger that more that’s but you

should the So we risk lender being be in investor environment? of middle thinking and about this how market

Kipp Yes. have lender feel on the in the at you of my or free controlled to then equity being balance cents two pile understand I secured years we senior risks sheet below. will position you want value the others if a being been have the of versus couple last an trying and the of owner to -- give top but help over people

are challenges is So below situations into equity we that at secured. it’s we challenge feeling is predominantly echoing that market as our companies maybe business found and way credit terms are just much agree don’t ago. They to going what in would still situations consumer are we today and one if They the institutional how at lender. need senior of you it the us strain. probably different it they owner small the companies of lot liquidity is and a healing that the I look But large a in and of and middle quality market lending the the of where talked and are least books frankly money are size has our positioned. there predominantly than lending about we XX-years The the private capitalized books predominantly the to of where control just that in well was

of the institutional of terms those nature In businesses. and franchise quality

almost XXX%. about on credit and the but Kipp see team obviously modest up There is the you we metrics. talked it pick and a So call as in ARCC’s had can

we are I the slight of it non-accruals facing and long as also function and going think as close in institutional owners underlying So off tick think the liquid risk long which payment you're of quarter we the in XXX% equity fact as a there of book and there think that’s is to actually it it mitigant senior loan as to up itself that quality to capability need is in a the the against into I you we a money the are actually and on company to the the have but issue sudden book that underwritten than for a made like I is up when to own an foreclose have. been a of all I at you there's extent through be least issue well equity having think more wind it done this will credit a

next Blostein Sachs. go question ahead. Our will with come Please Alex from Goldman

areas build wanted the some dislocated of the either both on of more think for I other guys Mike highlighted sheet thanks to strategic you've be there your estate respect or whether corporate well things of the trying color hi, all with in the to priorities causative in for to the so as and that more guys thanks there prepared actually the I ask M&A growth to nature that think Great some helpful of comes flexibility some kind Mike’s question some in remarks historically some obviously for taking or I balance thanks. of you place particular real put is initiatives initiatives anything accelerating into mind it's of M&A you would been the color around

are explicit on and to been so were where as prior we've insurance. pretty we focusing calls obviously Sure there

development given then the just and assets size those teams is the interesting into thing that not pretty something able it's in some something to product just and the markets real priority as actually a some a bit new so lot SNBC. what there's big joint so us and we execute is And conversations of where always reposition amount already ventures I tie we obviously use development doing. continued these have so assets use lines use can a and about we those change balance a for experience we've opportunity to sheet us business real we up think balance estate as seeing Asia the but like new the product and of a real been M&A organically modestly on having this are SSG I the probably teams lot product new estate and actually would adjacent bigger development you that a advance is crisis against sheet framework distress product that and couple strategic know assets and M&A you're real fair sheet the out of to platform a to significant so the telling becoming business acquire for list that defined probably sits broadly talked of continues estate that economic initiatives new launch but would be in real this over and something organically be of using to highlight obviously our to expect would quarters a next amount that the set and the it's will strategic transformational and up market the of a little that estate accelerate we continue with already we just moved focus we'll strategic Aspida through to of and we doing well real growth development this in balance is happening it balance so our crisis I assets sheet the result and infrastructure focus well. the you be as expect other a a a and of of to doing health coming

Thank you Great. much.

from RBC come Markets. Lee with Capital Please will go Kenneth question next Our ahead.

thanks. any the taking of thanks frame question position in relative perhaps us you Hi or talk just firm the I'm needs wondering of could liquidity help if term any commitments the my unfunded for liquidity of near strength about kind the

to one Michael that you want take

there's which have about our a I liquidity we the flush mark to in position prepared billion have market to sheets cash happy on of about great to leverage where we with Clearly liquidity no flank X.X margin similar undrawn because no repayments remarks. so funding or we I calls feel about is access important that balance talked Yes under. exposed which highlighted with revolver combined of think our types plus worry

capital full have is debt from We from our a credit our feel our now and have facility where maturity so so lot really standpoint revolver roll next usually you we sheet that. XXXX term we no seen balance of a out I year really, each good think maturities amended so probably bond end years have from about I would we our near think corporate through

Ares have have would requirements. held Management funds, of amount As employees of decent side-by-side commitments going commitments, SSG our fairly closing by we far described lot with I have that, of have of primarily We for settlement invests liquidity really of to our we we previously real fairly which there the amounts. It’s the of Outside that GP opportunities. our stock closed be to access as do [indiscernible] funds. more with are a disclosed about contractual previously those other and transaction [indiscernible] call is to that a what capital in

employees obviously funding actually frame as actually up the commitments, more model lighter aggregated just investment but book, million, about time and more $XXX in the the potential of balance if to quickly. sheet get Yes. I over light Mike’s our to it are deployed existing which has if it’s got you future think that, And think doesn’t GP Ken, I point, taking you looked

our funds? across years Many

Yes.

So about think to if it’s actually of on from try the you GP the book balance investments, the actual quite small. would demands sheet

and Great. you very Very helpful. everyone safe. stays much I hope That’s have. all Thank

Thank you.

final And come question with our Cyprys Michael Morgan Stanley. will ahead. from Please go

me in for thanks squeezing here. Hi,

a versus much not lending newer investments set, deployment lending a hoping question think Just the funds sponsored maybe just seeing focused for as the against XX:XX, LBO bit is how would which making adapting on opportunity you more of talk you much direct set, evolving existing lending, you that’s newer like those of elaborate has just how and are activity, on about companies how direct you an could largely there opportunity in direct are could I say you guys little portfolio been finance your some investments? sourcing

Sure.

right, So, buyout somewhat is happening. muted you are new it activity although is

U.S., in by COVID. industries are in we transactions closing and Europe are new So particularly that affected not the obviously both

healthcare can’t segment of a the be underwritten certain landscape segments technology etcetera. So, of and that around is economy there the

is pretty we will opportunity existing thought on mentioned, existing capital I deployment the into there talked into is to do that return yesterday, capital the So in to but it XX% provide was borrowers. a title think book. about into XX.X% there, the portfolio at call deployment to portfolio the as it about about return opportunity out books. That against slower. we loans interesting I that accelerate existing an that on seeing is X% I it ARCC quarter was we stuff an There think bringing of came the of our good and capital indicator the Mitch was went are return

their teams invest existing the but underwriting are their book support increasing fees up investments to they below us, those where through are documents, the to de-leveraging direct making and time companies, using infusion equity capital where So, all lending spreads, we tightening are is that. most of spending

then a loans. in should we which come re-rating So there the of is higher there embedded a is through also kind returns on re-underwriting, but book see the

fruitful rescue that’s very the There we the lending the Group platform are actually and that provide combined to that us companies very, fruitful. with pretty thing us. doing been for certain opportunity in to allow have capital leveraging that’s opportunities Credit partnership companies and funds been liquidity bring side baskets is incremental into is docks into Second them reopening for without Alternative is the on new

will our expect, the we would direct lending secondary to ability long been then actually and coming secondary invest We say start opportunity it's coming we as tracking and And is the a as you as past the in funds would quite market single actively actually expect that So, well. that a – back in that active actively of as potential seeing there have portfolios assets names needless us done secondary to this volatility as as very as are list all of well. we to opportunities. have are extends

just most that see jump will are definitely just in. as I as It’s we weakened part. of much of Mike, this difficulty extends going liquidity the emerge kind stronger. Deveer. Kipp point for companies think existing in and forward, it’s significantly a competition comes We a deal with mean, the new of of – lot providing having I space portfolio when that’s outstanding say key commitments, I competition to non-starter. see the we the I to will dealing concept

since a and outlined. the lot deployed in of of have that We north the X sets we March the Mike opposite and U.S. are billion Europe then opportunity position in in $X exactly

of current are deals business them. things do exciting. we in are So mean, I there environment are very for much of pretty in new the there although to that are other lot fewer

you. thank Great,

Ladies for conference and our concludes call this gentlemen, today.

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