1 00:00:00,120 --> 00:00:03,560 Speaker 1: Aries Management is out with its latest results today, shares 2 00:00:03,640 --> 00:00:06,920 Speaker 1: rising as the company reported assets under management grew nineteen 3 00:00:06,960 --> 00:00:09,880 Speaker 1: percent year over year to nearly four hundred and nineteen 4 00:00:09,960 --> 00:00:13,039 Speaker 1: billion dollars, topping estimates of four hundred and nine billion. 5 00:00:13,360 --> 00:00:15,960 Speaker 1: ARI CEO Mike Raghetti joins me now as a stock 6 00:00:16,000 --> 00:00:18,760 Speaker 1: price hits a new record after a tear last year, 7 00:00:18,760 --> 00:00:21,759 Speaker 1: I should say, Mike, when people look at what you're 8 00:00:21,760 --> 00:00:25,160 Speaker 1: doing over at Aries, it's pretty notable because you went 9 00:00:25,200 --> 00:00:27,920 Speaker 1: from zero to sixty. It seems like you've become much 10 00:00:27,960 --> 00:00:31,960 Speaker 1: bigger than some of your older rivals like Carlisle for example, 11 00:00:31,960 --> 00:00:35,599 Speaker 1: and market cap. What is it exactly that they're betting on? 12 00:00:35,880 --> 00:00:38,640 Speaker 1: Is this kind of rising with the private credit boom 13 00:00:39,000 --> 00:00:40,040 Speaker 1: or is there something else? 14 00:00:40,920 --> 00:00:44,479 Speaker 2: I think a lot of the relative momentum is clearly credit. 15 00:00:44,600 --> 00:00:47,160 Speaker 2: We were very early to the private credit markets, dating 16 00:00:47,159 --> 00:00:51,720 Speaker 2: back almost thirty years, and as that market has expanded, 17 00:00:51,720 --> 00:00:55,760 Speaker 2: both in terms of moving into real estate and infrastructure, 18 00:00:55,760 --> 00:00:59,440 Speaker 2: but also globalizing, it's been a big, a big tailwind. 19 00:00:59,520 --> 00:01:02,880 Speaker 2: But whether we're talking about private markets or public markets, 20 00:01:02,920 --> 00:01:05,440 Speaker 2: at the end of the day, it's about performance, and 21 00:01:05,520 --> 00:01:09,600 Speaker 2: I do think if you look at the earnings performance 22 00:01:09,640 --> 00:01:12,600 Speaker 2: over a number of years. It stands out for its 23 00:01:12,600 --> 00:01:15,880 Speaker 2: consistency but also for its growth on a relative basis, 24 00:01:15,920 --> 00:01:17,760 Speaker 2: So you know, I think at the end of the day, 25 00:01:17,880 --> 00:01:21,759 Speaker 2: assets follow performance and stock price follows the performance as well. 26 00:01:21,800 --> 00:01:23,280 Speaker 2: So we're just going to keep doing what we're doing. 27 00:01:23,400 --> 00:01:25,959 Speaker 1: I fil the need to really push you on performance 28 00:01:26,000 --> 00:01:28,600 Speaker 1: here and how sustainable it is across the industry, not 29 00:01:28,680 --> 00:01:30,760 Speaker 1: just for areas, because there are a lot of worries 30 00:01:30,800 --> 00:01:34,520 Speaker 1: out there, Mike about credit quality when it starts to turn, 31 00:01:35,080 --> 00:01:37,959 Speaker 1: how do you avoid pit falls? And how many pitfalls 32 00:01:38,000 --> 00:01:39,840 Speaker 1: are there in the market right now in the world 33 00:01:39,880 --> 00:01:40,639 Speaker 1: of private credit. 34 00:01:42,120 --> 00:01:44,760 Speaker 2: I think that that story, frankly, is a little overblown. 35 00:01:44,800 --> 00:01:48,320 Speaker 2: And you and I have talked about this before. The 36 00:01:48,360 --> 00:01:51,280 Speaker 2: structure of the market is fundamentally different than it was 37 00:01:51,520 --> 00:01:53,840 Speaker 2: thirty years ago. But if you go back to the 38 00:01:53,880 --> 00:01:56,760 Speaker 2: beginnings of this business, the narrative was always there that 39 00:01:56,840 --> 00:01:59,240 Speaker 2: there was risk being taken in these markets. It wasn't 40 00:01:59,240 --> 00:02:01,520 Speaker 2: being taken anyway where, and I just don't think that 41 00:02:01,600 --> 00:02:05,800 Speaker 2: that's true, and the performance would bear that out. If 42 00:02:05,840 --> 00:02:09,520 Speaker 2: you look at ARCC, which is our traded BDC. We 43 00:02:09,800 --> 00:02:13,320 Speaker 2: announced earnings yesterday, and the non accrual rate in that 44 00:02:13,400 --> 00:02:17,360 Speaker 2: portfolio is zero point six percent at fair value, which 45 00:02:17,400 --> 00:02:21,200 Speaker 2: is well below the industry historical average about three percent. 46 00:02:21,800 --> 00:02:26,640 Speaker 2: So it's quite interesting. Obviously, the stresses you're seeing in 47 00:02:26,720 --> 00:02:30,400 Speaker 2: certain corners of the market like real estate, are rate driven, 48 00:02:30,480 --> 00:02:34,079 Speaker 2: but when you get below the surface, the fundamental performance 49 00:02:34,120 --> 00:02:38,120 Speaker 2: is still very strong and very intact. But what's different 50 00:02:38,160 --> 00:02:42,480 Speaker 2: about private credit today than decades ago is the amount 51 00:02:42,720 --> 00:02:47,720 Speaker 2: of private equity supporting these assets and companies is significantly 52 00:02:47,800 --> 00:02:49,639 Speaker 2: higher than it ever was. So if you look at 53 00:02:49,680 --> 00:02:53,200 Speaker 2: most private credit assets, they're loan to value somewhere between 54 00:02:53,240 --> 00:02:55,920 Speaker 2: forty and fifty percent. That means that you have a 55 00:02:56,040 --> 00:03:01,280 Speaker 2: highly sophisticated, highly aligned equity partner sitting below your private 56 00:03:01,280 --> 00:03:05,760 Speaker 2: credit instrument that is obviously aligned to performance. So I 57 00:03:05,800 --> 00:03:09,440 Speaker 2: don't expect to see private credit, you know, as we 58 00:03:09,480 --> 00:03:12,079 Speaker 2: all talk about it, show show cracks, because I think 59 00:03:12,120 --> 00:03:14,640 Speaker 2: the structure of the loans is just fundamentally more sound 60 00:03:14,639 --> 00:03:15,280 Speaker 2: than it's ever been. 61 00:03:15,440 --> 00:03:17,639 Speaker 1: You know, you think about the market's expectation for rate 62 00:03:17,680 --> 00:03:21,000 Speaker 1: cuts here, I'm curious about your weighing in on what 63 00:03:21,040 --> 00:03:23,799 Speaker 1: would happen if we don't get five rate cuts before 64 00:03:23,840 --> 00:03:26,360 Speaker 1: the June evlon C meeting. And rates stay a little 65 00:03:26,440 --> 00:03:28,959 Speaker 1: higher for longer, what other kinds of cracks do you 66 00:03:29,000 --> 00:03:30,880 Speaker 1: start to see in credit markets at that rate? 67 00:03:31,720 --> 00:03:33,680 Speaker 2: Yeah, I think real estate, and you're beginning to see 68 00:03:33,680 --> 00:03:36,560 Speaker 2: those cracks emerge. Right, So as rates stay higher for longer, 69 00:03:36,560 --> 00:03:39,600 Speaker 2: which by the way, is my base case, you're going 70 00:03:39,640 --> 00:03:43,000 Speaker 2: to begin to see even you know, modestly underperforming assets 71 00:03:43,440 --> 00:03:46,280 Speaker 2: have challenges. And this goes back to my prior comment 72 00:03:46,280 --> 00:03:50,240 Speaker 2: about the value of institutional sponsorship. Right, So, if you 73 00:03:50,280 --> 00:03:53,440 Speaker 2: have an institutional sponsor of a high quality asset, they 74 00:03:53,480 --> 00:03:56,560 Speaker 2: will use their capital to protect the value in that 75 00:03:56,600 --> 00:03:59,240 Speaker 2: asset or that company. And if you have a weaker 76 00:03:59,280 --> 00:04:03,120 Speaker 2: asset or a weaker company without sponsorship, there may be 77 00:04:03,160 --> 00:04:06,560 Speaker 2: some challenges. So obviously, the longer we go with rates higher, 78 00:04:06,640 --> 00:04:08,360 Speaker 2: you will see more cracks. But I think if you 79 00:04:08,480 --> 00:04:12,600 Speaker 2: aggregate across all of the markets, we're at peak rate, 80 00:04:12,720 --> 00:04:14,640 Speaker 2: we know we're going to be coming down from here, 81 00:04:15,480 --> 00:04:17,560 Speaker 2: and I think that's not going to be constructive both 82 00:04:17,560 --> 00:04:19,080 Speaker 2: for performance and deal activity. 83 00:04:19,160 --> 00:04:21,440 Speaker 1: You think about what's happening over at New York Community Bank. 84 00:04:21,480 --> 00:04:23,880 Speaker 1: It's causing a ton of fears in the regional banking system. 85 00:04:23,920 --> 00:04:26,479 Speaker 1: You yourself have really pointed to the idea that this 86 00:04:26,520 --> 00:04:29,760 Speaker 1: could be a multi year problem. Paint a picture of 87 00:04:29,800 --> 00:04:32,760 Speaker 1: how that plays out through twenty twenty four and even 88 00:04:32,800 --> 00:04:33,719 Speaker 1: twenty twenty five. 89 00:04:34,880 --> 00:04:38,080 Speaker 2: Well, it speaks a lot to prior comments that we've 90 00:04:38,080 --> 00:04:41,520 Speaker 2: made just about the importance of private markets in stabilizing 91 00:04:42,080 --> 00:04:45,360 Speaker 2: the public markets. And so you look at twenty twenty three, 92 00:04:45,400 --> 00:04:47,800 Speaker 2: and obviously there was a lot going on, but we 93 00:04:47,960 --> 00:04:52,120 Speaker 2: got through pretty challenging time in the bank markets through 94 00:04:52,120 --> 00:04:58,000 Speaker 2: a combination of private capital, public capital, and policy. And 95 00:04:58,080 --> 00:05:01,200 Speaker 2: I think given what we saw playout in first and 96 00:05:01,240 --> 00:05:03,480 Speaker 2: second quarter of last year, I would continue to believe 97 00:05:03,520 --> 00:05:07,200 Speaker 2: that these isolated instances like New York Community Bank are 98 00:05:07,200 --> 00:05:11,160 Speaker 2: going to be resolved with a combination of private markets, partnership, 99 00:05:11,320 --> 00:05:16,240 Speaker 2: and bank capital. So I'm actually optimistic. I think that 100 00:05:16,279 --> 00:05:19,160 Speaker 2: the markets are proving to be resilient. There's enough liquidity 101 00:05:19,600 --> 00:05:23,560 Speaker 2: to resolve these But it is it is a commentary, 102 00:05:23,600 --> 00:05:27,200 Speaker 2: I think on the fundamental difference in the structure of 103 00:05:27,320 --> 00:05:31,040 Speaker 2: bank balance sheet and the structure of an unlevered private fund. 104 00:05:31,440 --> 00:05:34,760 Speaker 2: And when you go through this amount of rate hikes 105 00:05:34,839 --> 00:05:38,839 Speaker 2: so rapidly, it exposes exposes those weaknesses. So I actually 106 00:05:38,880 --> 00:05:41,480 Speaker 2: think that this is going to help, you know, advance 107 00:05:41,560 --> 00:05:44,080 Speaker 2: the narrative of the importance of the private markets in 108 00:05:44,800 --> 00:05:48,000 Speaker 2: partnering with banks and partnering with the liquid markets as 109 00:05:48,680 --> 00:05:49,480 Speaker 2: we get through cycles. 110 00:05:49,520 --> 00:05:52,159 Speaker 1: So okay, In New York Community Bank reported just yesterday 111 00:05:52,400 --> 00:05:55,880 Speaker 1: we'll go to market. It's exploring loan sales and other 112 00:05:55,960 --> 00:05:58,600 Speaker 1: ways to offload risk. Would you be in talks with 113 00:05:58,640 --> 00:06:01,320 Speaker 1: them in a situation like this? Are you in talks? 114 00:06:01,440 --> 00:06:04,960 Speaker 2: Well, I can't comment on that specifically, but I think, 115 00:06:05,000 --> 00:06:08,560 Speaker 2: as you know, earlier last year we execute on a 116 00:06:08,640 --> 00:06:13,080 Speaker 2: major portfolio purchase from PacWest. Towards the back half of 117 00:06:13,120 --> 00:06:15,960 Speaker 2: the year, we announced that we had argued with another 118 00:06:16,000 --> 00:06:19,880 Speaker 2: regional bank on a pretty meaningful risk transfer. So yeah, 119 00:06:19,920 --> 00:06:23,359 Speaker 2: I think that given our capabilities in private credit, in 120 00:06:23,440 --> 00:06:26,200 Speaker 2: alternative credit, and just given the amount of liquidity do 121 00:06:26,279 --> 00:06:28,839 Speaker 2: we have, I think that we are a natural partner 122 00:06:28,960 --> 00:06:33,640 Speaker 2: for any bank that's looking to reposition it's asset mix. 123 00:06:34,000 --> 00:06:36,920 Speaker 1: It's interesting, you know, you had, for example, Harvey Schwartz, 124 00:06:37,040 --> 00:06:39,240 Speaker 1: CEO of Carlisle, yesterday tell me that he wouldn't be 125 00:06:39,240 --> 00:06:42,800 Speaker 1: willing necessarily to head into some of the commercial mortgages 126 00:06:42,839 --> 00:06:44,760 Speaker 1: that are being offloaded by these banks. We know that 127 00:06:44,839 --> 00:06:48,440 Speaker 1: commercial mortgage risk is what's weighing on the sector most heavily. 128 00:06:49,160 --> 00:06:50,720 Speaker 1: Is there a place that you could step in? 129 00:06:51,880 --> 00:06:54,640 Speaker 2: Well, I think again, everyone likes to paint real estate 130 00:06:54,680 --> 00:06:58,440 Speaker 2: with one brush, and you know, real estate means a 131 00:06:58,480 --> 00:07:01,120 Speaker 2: lot of different things. And if you look at our exposures, 132 00:07:02,200 --> 00:07:07,000 Speaker 2: what we see given are over indexing to industrial, multifamily, 133 00:07:07,640 --> 00:07:11,559 Speaker 2: student housing, you know, data centers. There there are very 134 00:07:11,600 --> 00:07:14,800 Speaker 2: big parts of the commercial real estate business that are 135 00:07:14,840 --> 00:07:18,240 Speaker 2: performing very well even in this rate environment. So I 136 00:07:18,240 --> 00:07:21,040 Speaker 2: think most of the stress that we're talking about is 137 00:07:21,080 --> 00:07:23,720 Speaker 2: obviously going to be happening within the you know CBD 138 00:07:23,880 --> 00:07:28,960 Speaker 2: office market. That's a tough place to be. But as 139 00:07:28,960 --> 00:07:31,560 Speaker 2: an example, we just launched a joint venture with a 140 00:07:31,680 --> 00:07:36,080 Speaker 2: very prominent New York real estate partner to begin to 141 00:07:36,360 --> 00:07:39,680 Speaker 2: look for opportunities to bring capital into that market for 142 00:07:39,760 --> 00:07:42,440 Speaker 2: Class A properties. So a lot of this, whether you're 143 00:07:42,480 --> 00:07:46,040 Speaker 2: talking about commercial real estate or you know buyouts, is 144 00:07:46,080 --> 00:07:48,840 Speaker 2: really about what's the value of the enterprise or the asset. 145 00:07:49,320 --> 00:07:53,280 Speaker 2: You know, when are you comfortable resetting basis and bringing 146 00:07:53,320 --> 00:07:55,320 Speaker 2: money in? And I think we will find a natural, 147 00:07:55,920 --> 00:07:58,520 Speaker 2: natural bottom and a natural clearing point for for real 148 00:07:58,640 --> 00:07:59,200 Speaker 2: estate as well. 149 00:07:59,240 --> 00:08:01,920 Speaker 1: What's that clearing. I think I've been asking that question 150 00:08:02,040 --> 00:08:05,280 Speaker 1: for a year now. When do things frankly get bad 151 00:08:05,400 --> 00:08:06,400 Speaker 1: enough for you to buy? 152 00:08:07,600 --> 00:08:10,640 Speaker 2: Well, we are buying. We're quite active globally in our 153 00:08:10,640 --> 00:08:13,280 Speaker 2: real estate business. So the bulk of what we've been doing, 154 00:08:13,360 --> 00:08:16,080 Speaker 2: and this is true you know across the platform, is 155 00:08:16,200 --> 00:08:20,680 Speaker 2: using debt like instruments or debt structured equity to come 156 00:08:20,680 --> 00:08:24,640 Speaker 2: into these balance sheets effectively above the equity. Try to 157 00:08:24,680 --> 00:08:27,960 Speaker 2: be a good, you know, collaborative liquidity partner, but not 158 00:08:28,000 --> 00:08:32,360 Speaker 2: necessarily have to underwrite equity risk. So part of the 159 00:08:32,400 --> 00:08:34,680 Speaker 2: benefit of our scale and flexibility is that we don't 160 00:08:34,679 --> 00:08:37,040 Speaker 2: actually have to come in, you know, and have a 161 00:08:37,120 --> 00:08:40,280 Speaker 2: perfect view on the value of the equity in order 162 00:08:40,320 --> 00:08:41,679 Speaker 2: to come in and be a partner. I think that's 163 00:08:41,720 --> 00:08:44,679 Speaker 2: one of the benefits of you know, of flexible capital 164 00:08:44,679 --> 00:08:45,720 Speaker 2: and opportunistic credit. 165 00:08:46,400 --> 00:08:49,440 Speaker 1: It was an amazing fundraising for you last year. It 166 00:08:49,480 --> 00:08:52,120 Speaker 1: was the second best fundraising year you had on record, 167 00:08:52,160 --> 00:08:55,320 Speaker 1: I believe. And you're in the market according to Bloomberg's 168 00:08:55,360 --> 00:09:01,320 Speaker 1: reporting for a record direct lending fund. How much appetite 169 00:09:01,640 --> 00:09:04,720 Speaker 1: is there for private credit to continue at that pace? 170 00:09:05,320 --> 00:09:07,600 Speaker 1: And where are you putting all this money to work. 171 00:09:09,240 --> 00:09:12,240 Speaker 2: Well, you know, how much time do you have. We 172 00:09:13,400 --> 00:09:15,560 Speaker 2: just had our earnings call earlier and someone asked a 173 00:09:15,559 --> 00:09:20,640 Speaker 2: similar question, and you know, without getting too deep into it, 174 00:09:21,120 --> 00:09:24,160 Speaker 2: the reality is that the private credit markets, even though 175 00:09:24,200 --> 00:09:28,199 Speaker 2: they're having a moment, are still massively under capitalized relative 176 00:09:28,200 --> 00:09:31,320 Speaker 2: to the amount of institutional equity that needs some form 177 00:09:31,360 --> 00:09:35,760 Speaker 2: of private credit solution. So, you know, just as an example, 178 00:09:35,840 --> 00:09:39,240 Speaker 2: there's about a trillion dollars of uninvested private equity dry 179 00:09:39,280 --> 00:09:43,640 Speaker 2: powder in the market against roughly two hundred billion of 180 00:09:43,640 --> 00:09:46,760 Speaker 2: private credit dry powder. So for all of the attention 181 00:09:46,840 --> 00:09:49,320 Speaker 2: that private credit is getting, there's just not enough private 182 00:09:49,320 --> 00:09:52,839 Speaker 2: credit in the market to satisfy the private equity that's 183 00:09:52,880 --> 00:09:56,920 Speaker 2: already been raised, putting aside some of these cyclical opportunities 184 00:09:56,960 --> 00:10:00,960 Speaker 2: that we're talking about. So I think that there's plenty 185 00:10:00,960 --> 00:10:06,800 Speaker 2: of appetite. The return opportunity in private credit across the 186 00:10:06,840 --> 00:10:09,000 Speaker 2: different parts of the market is as good as we've 187 00:10:09,440 --> 00:10:13,160 Speaker 2: seen in a very long time since the GFC, and 188 00:10:13,240 --> 00:10:17,000 Speaker 2: I think people are seeing the seniority and the structural 189 00:10:17,080 --> 00:10:19,040 Speaker 2: protections and will continue to allocate. 190 00:10:19,240 --> 00:10:22,679 Speaker 1: So it's interesting a year ago, Mike, or even just 191 00:10:22,720 --> 00:10:24,439 Speaker 1: a couple months ago, you and I were sitting here 192 00:10:24,480 --> 00:10:27,400 Speaker 1: looking at a bank market that struggled to compete with 193 00:10:27,520 --> 00:10:31,520 Speaker 1: firms like yours. They were struggling to offload leverage loans 194 00:10:31,559 --> 00:10:34,400 Speaker 1: that were settled on their books. Now they look like 195 00:10:34,440 --> 00:10:37,600 Speaker 1: they're starting to fight back and edge their way into deals. 196 00:10:38,080 --> 00:10:42,080 Speaker 1: How do you describe the bank versus non bank dynamic here? 197 00:10:43,400 --> 00:10:47,200 Speaker 2: Yeah, We've been doing this for thirty years, and you 198 00:10:47,240 --> 00:10:50,040 Speaker 2: could go back and I've been saying the same thing 199 00:10:50,280 --> 00:10:54,680 Speaker 2: through every cycle. There are moments where the banks are 200 00:10:55,040 --> 00:10:59,360 Speaker 2: less aggressive in risk taking, or the liquid markets or 201 00:10:59,400 --> 00:11:02,120 Speaker 2: less aggressive been risk taking, and the private credit markets 202 00:11:02,400 --> 00:11:04,920 Speaker 2: have the opportunity to take share at the upper end 203 00:11:05,360 --> 00:11:08,080 Speaker 2: of their size range. And then there are times when 204 00:11:08,200 --> 00:11:13,959 Speaker 2: the syndicated markets are risk on and then you give 205 00:11:14,040 --> 00:11:15,760 Speaker 2: up a little bit of that share at the high end, 206 00:11:15,800 --> 00:11:19,880 Speaker 2: but transaction activity picks up and everybody wins. So, I 207 00:11:20,760 --> 00:11:22,840 Speaker 2: you know, given the way that we've positioned our business 208 00:11:22,840 --> 00:11:25,680 Speaker 2: in the core midtal market for so long, I've always 209 00:11:25,800 --> 00:11:29,160 Speaker 2: viewed this opportunity to kind of trade share with the 210 00:11:29,200 --> 00:11:32,640 Speaker 2: banks at the upper end of the market as episodic, 211 00:11:32,679 --> 00:11:36,800 Speaker 2: but that's not the core business. Not surprisingly, Areas has 212 00:11:36,840 --> 00:11:39,240 Speaker 2: a very large liquid credit business as well, we're a 213 00:11:39,320 --> 00:11:43,320 Speaker 2: very large COLO manager, and so when those markets turn 214 00:11:43,440 --> 00:11:46,959 Speaker 2: back on, we have the opportunity to pivot into that 215 00:11:47,040 --> 00:11:49,679 Speaker 2: market as well to obviously fund the growth in our 216 00:11:49,720 --> 00:11:52,560 Speaker 2: liquid business and also to drive underwriting. So it's not 217 00:11:52,640 --> 00:11:55,600 Speaker 2: a new trend. It's been like that for the last 218 00:11:55,640 --> 00:11:58,160 Speaker 2: twenty years. And you know, I think they are. I 219 00:11:58,200 --> 00:12:00,280 Speaker 2: wouldn't even say they're fighting back, but they are now 220 00:12:00,280 --> 00:12:02,840 Speaker 2: in a position to take risk and they're going to 221 00:12:02,880 --> 00:12:05,160 Speaker 2: do it, and you know, that's the level. 222 00:12:05,640 --> 00:12:07,960 Speaker 1: What's interesting is you see many of these banks, JP 223 00:12:08,040 --> 00:12:11,679 Speaker 1: Morgan included looking at private credit, entering it in a 224 00:12:11,679 --> 00:12:14,520 Speaker 1: bigger way. I go through partnerships, hiring, raising funds of 225 00:12:14,559 --> 00:12:16,640 Speaker 1: their own. How does that change your market? 226 00:12:18,360 --> 00:12:20,880 Speaker 2: I don't know if it does. And again I struggle 227 00:12:20,920 --> 00:12:24,960 Speaker 2: with what is private credit right private credit is making loans. 228 00:12:24,960 --> 00:12:27,120 Speaker 2: So JP Morgan is one of the largest lenders on 229 00:12:27,160 --> 00:12:29,559 Speaker 2: the planet, So when I hear that they want to 230 00:12:29,559 --> 00:12:31,959 Speaker 2: get into private credit, I'm not quite sure I understand 231 00:12:32,000 --> 00:12:34,800 Speaker 2: what that means because I look at them as the 232 00:12:34,880 --> 00:12:39,120 Speaker 2: largest lender in the market, and if you start trading loans, 233 00:12:39,160 --> 00:12:42,240 Speaker 2: then it's no longer private. So I think everyone is 234 00:12:42,280 --> 00:12:46,520 Speaker 2: struggling to kind of get a shared understanding of what 235 00:12:46,600 --> 00:12:49,319 Speaker 2: this is and what the opportunity is. But again, we've 236 00:12:49,360 --> 00:12:53,000 Speaker 2: been coexisting largely as partners and collaborative partners with the 237 00:12:53,040 --> 00:12:56,280 Speaker 2: banks for as long as we've been in business. And 238 00:12:56,320 --> 00:12:59,720 Speaker 2: whether they're taking exposure through syndications and on the sales 239 00:12:59,760 --> 00:13:02,280 Speaker 2: and trade desk, or they're doing it directly on their 240 00:13:02,320 --> 00:13:05,640 Speaker 2: balance sheet, I don't really perceive that to be a 241 00:13:05,679 --> 00:13:07,840 Speaker 2: meaningful change in the way the markets are structure. 242 00:13:08,080 --> 00:13:11,040 Speaker 1: You know, Mike, you're certainly rising at areas and rising 243 00:13:11,080 --> 00:13:14,280 Speaker 1: as a CEO yourself. You're very notably on the deal 244 00:13:14,440 --> 00:13:18,000 Speaker 1: to buy the Baltimore Orioles, we should say, Michael Bloomberg, 245 00:13:18,160 --> 00:13:21,880 Speaker 1: who is the owner of Bloomberg LP as also part 246 00:13:21,880 --> 00:13:24,760 Speaker 1: of that Orioles ownership group along with David Rubinstein, also 247 00:13:24,840 --> 00:13:27,920 Speaker 1: contributor to the network as well. What is this deal 248 00:13:27,960 --> 00:13:29,040 Speaker 1: about for you? 249 00:13:29,679 --> 00:13:32,440 Speaker 2: Certainly you offering Are you offering me a job at Bloomberg? 250 00:13:32,520 --> 00:13:33,160 Speaker 2: Is that what that was? 251 00:13:33,720 --> 00:13:36,240 Speaker 1: Certainly not? But I am wondering what you are doing 252 00:13:36,559 --> 00:13:39,520 Speaker 1: buying the Orioles. Certainly sports has been a big moment 253 00:13:39,920 --> 00:13:43,559 Speaker 1: for high net worth individuals as well as private asset owners. 254 00:13:44,040 --> 00:13:44,839 Speaker 1: What does this say? 255 00:13:46,320 --> 00:13:47,720 Speaker 2: Well, I think, first of all, it says that I'm 256 00:13:47,760 --> 00:13:50,760 Speaker 2: just a lifelong passionate baseball fan and just thrilled to 257 00:13:50,760 --> 00:13:53,600 Speaker 2: have the opportunity to be involved in something like that, 258 00:13:53,880 --> 00:13:57,040 Speaker 2: especially with the franchise that is so long tenured and 259 00:13:57,120 --> 00:14:02,480 Speaker 2: has such a deep history as the Orioles do. I also, 260 00:14:03,200 --> 00:14:06,320 Speaker 2: I've known David for gosh twenty five thirty years, and 261 00:14:06,320 --> 00:14:08,800 Speaker 2: I think he's one of the great leaders in the 262 00:14:08,840 --> 00:14:12,200 Speaker 2: community and in our business, and so the opportunity to 263 00:14:12,240 --> 00:14:14,240 Speaker 2: partner with him behind his leadership is kind of a 264 00:14:14,320 --> 00:14:18,400 Speaker 2: once in a lifetime opportunity for me as well. And 265 00:14:18,440 --> 00:14:20,720 Speaker 2: you're right, sports, you know, it's funny we have a 266 00:14:20,720 --> 00:14:23,680 Speaker 2: big sports business here at areas. I think is as 267 00:14:23,760 --> 00:14:28,280 Speaker 2: you know, and in a world that is increasingly divisive 268 00:14:28,360 --> 00:14:33,040 Speaker 2: and political and tribal, what you begin to realize as 269 00:14:33,120 --> 00:14:35,320 Speaker 2: sports is the way that we all come together and 270 00:14:36,160 --> 00:14:39,520 Speaker 2: rally around shared ideas and values. And so I just 271 00:14:39,960 --> 00:14:42,760 Speaker 2: I'm passionate about baseball, and I'm passionate about what sport, 272 00:14:43,680 --> 00:14:47,920 Speaker 2: you know, means for society and thrilled to be now 273 00:14:47,920 --> 00:14:52,240 Speaker 2: a part of the Baltimore family and looking forward to 274 00:14:52,240 --> 00:14:52,720 Speaker 2: the future. 275 00:14:53,440 --> 00:14:55,160 Speaker 1: Mike garra Getty, we thank you so very much for 276 00:14:55,200 --> 00:14:58,359 Speaker 1: your time. Certainly another big year in your world.