WEBVTT - Bob Diamond and  Elliot Lorenz Talk AI, Tokenization

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news, Well today and really

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<v Speaker 1>just moments ago, Bob Diamond's Autless Merchant Capital announcing a

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<v Speaker 1>minority equity investment in Edge Focus. It's a firm that

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<v Speaker 1>delivers technology capital and access to consumer credit. So we

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<v Speaker 1>wanted to get the details right from the sources, the

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<v Speaker 1>main sources. Bob Diamond is founding partner and CEO of

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<v Speaker 1>Atlas Merchant and Capital, global private equity and all to

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<v Speaker 1>asset management firm focused on the financial services sector. He's

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<v Speaker 1>also chairman of hyper Liquid Strategies.

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<v Speaker 2>Welcome, Welcome, My know thing or two about and running

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<v Speaker 2>a big banks too.

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<v Speaker 1>Yes, I bet he has some stories also with us.

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<v Speaker 1>Elliott Lorenz, he is co founder and CEO of Edge Focus. They,

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<v Speaker 1>as the company reminds us, delivers technology capital and access

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<v Speaker 1>to consumer credit. Welcome, Welcome to both of you. Thank

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<v Speaker 1>you for bringing this to us. I want to first

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<v Speaker 1>get to the investment. And Elliott, let's talk about this investment.

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<v Speaker 1>What does this equity investment specifically do for you? It

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<v Speaker 1>has to do with like operations, doesn't.

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<v Speaker 3>It It does. The important thing for us is being

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<v Speaker 3>able to go into more assets, uses and really investing

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<v Speaker 3>alongside of our partners. What we do, as you mentioned, Carol,

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<v Speaker 3>is provide capital as well as access, as well as

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<v Speaker 3>several different things in the consumer lending market. And we're

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<v Speaker 3>ultimately looking to do is stick.

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<v Speaker 1>A massive market by the way, Language market.

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<v Speaker 3>Two hundred million dollars in unsecure consumer last year. We're

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<v Speaker 3>trying to connect at the end of the day, big

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<v Speaker 3>investment firms like a Fortress with really large consumer lending

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<v Speaker 3>firms like a SOFI.

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<v Speaker 2>Yeah, Bob, come on in on this investment.

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<v Speaker 4>There's a lot of noise around credit markets, around private

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<v Speaker 4>credit right now. In particular, it's you have a very

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<v Speaker 4>diverse portfolio at Atlas Merchant Capital. Why make this investment

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<v Speaker 4>right now?

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<v Speaker 5>You know, we have seen a real unbelievable development in

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<v Speaker 5>the credit market since two thousand and eight, the Great

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<v Speaker 5>Financial Crisis, and I think so much of credit ended

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<v Speaker 5>up on bank balance sheets prior to two thousand and eight,

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<v Speaker 5>particularly outside the US, you know then the big banks

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<v Speaker 5>and Frans, it's the big banks in the UK. All

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<v Speaker 5>the credit was on the bank balance sheets, and we

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<v Speaker 5>have seen a real development. Some call it private credit,

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<v Speaker 5>you know, it's edge focus, it's Fortress.

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<v Speaker 1>Uh.

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<v Speaker 5>There there's so much diversification, and I think that's why

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<v Speaker 5>we have had such a long period without a real

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<v Speaker 5>blip in credit. It's it's become you know, it's a

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<v Speaker 5>real credit to the US capital markets. I think in

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<v Speaker 5>terms of consumer credit, and I saw this, you know,

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<v Speaker 5>through the lens of Barclays. I saw it very much

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<v Speaker 5>through Barclaycard, which dominated the credit card and consumer credit

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<v Speaker 5>market in the UK. Is again it's much more diverse.

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<v Speaker 5>It can be spread a lot, and I think we

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<v Speaker 5>have originators of consumer credit like so far in Age Focus.

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<v Speaker 5>We have capital that likes to invest in consumer credit,

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<v Speaker 5>like Fortress, and I think one of the things that

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<v Speaker 5>we can do together is we can find more originators.

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<v Speaker 5>We can find more investors. And you know, when we

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<v Speaker 5>look for an investment, you know, you want to have

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<v Speaker 5>someone that has a unique position in their market. That's

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<v Speaker 5>Edge Focus. You want to find someone that has strong leadership,

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<v Speaker 5>that's Elliott in the team. You want to find a

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<v Speaker 5>business that's profitable. But most importantly for us, you want

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<v Speaker 5>to find a business that has both a willingness and

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<v Speaker 5>ability to grow. And this can be a significant increase

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<v Speaker 5>over the next three four five years. With access to

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<v Speaker 5>capital to grow this business. So it's unusual in financial

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<v Speaker 5>services to look at investments where they can be multiples

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<v Speaker 5>of where they are today. But what Elliott and the

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<v Speaker 5>team have built can be multiples of this. It's a

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<v Speaker 5>big market.

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<v Speaker 1>You mentioned a unique focus that Elliott has and his team.

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<v Speaker 1>What is that unique focus Elliot? Because the consumer credit

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<v Speaker 1>market a lot of players, a lot of folks in there.

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<v Speaker 1>What is it that you guys are doing differently? And

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<v Speaker 1>I'm curious than like what you think they're doing differently?

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<v Speaker 1>That's appealing.

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<v Speaker 3>We do three things really well with us to a

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<v Speaker 3>ton of data, our modeling approach, and then access to

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<v Speaker 3>various other consumer lenders. From a data standpoint, hundreds of

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<v Speaker 3>billions of data points in the US consumer across lots

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<v Speaker 3>of platforms, we know really well at all times what

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<v Speaker 3>the consumers. Where's that data coming from two main sources,

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<v Speaker 3>from platforms themselves who issue loans, as well as the

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<v Speaker 3>credit bureaus, lots of all the alternative data sources as well.

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<v Speaker 3>From a modeling standpoint, we have PhD researchers where all

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<v Speaker 3>they do every day is research how to model the consumer,

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<v Speaker 3>see what the latest trends are. And then finally access

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<v Speaker 3>none of this matters unless you have really good access

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<v Speaker 3>across lots of different platforms.

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<v Speaker 5>Bobby, they have one more then.

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<v Speaker 1>They have incredible's someone who Dad, I said, the due diligence.

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<v Speaker 2>There's a lot of work on it.

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<v Speaker 5>They have incredible discipline, and both the originators and the

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<v Speaker 5>providers of capital love what they see here because of

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<v Speaker 5>the discipline with their own capital, but also with their

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<v Speaker 5>advice and council. So it's in underwriting but also in advising.

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<v Speaker 1>Does that mean only certain types of consumer credit that

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<v Speaker 1>you're going to like certain categories, certain times of like

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<v Speaker 1>tell us, is it top tier? Like? What are you

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<v Speaker 1>going for?

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<v Speaker 3>We look across the board. Generally speaking, we can provide

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<v Speaker 3>the most value in near prime and subprime credit, near.

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<v Speaker 1>Prime and supprima.

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<v Speaker 4>So on that, Elliott, so fine, happy money are our

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<v Speaker 4>two you know existing deals that our Bloomberg News team

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<v Speaker 4>has reported on. Would you would you think about expanding

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<v Speaker 4>to I don't know, other places like buy now pay

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<v Speaker 4>later firms for example.

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<v Speaker 3>Absolutely. I think it's part of the reason for the investment.

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<v Speaker 3>We want to grow beyond unsecured, which we're really big

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<v Speaker 3>and right now we're getting much bigger. In auto, we

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<v Speaker 3>want to be in point of sale, medical, we want

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<v Speaker 3>to be in home improvement. There's a ton of areas

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<v Speaker 3>for us to grow into.

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<v Speaker 2>What are some are you?

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<v Speaker 4>Are you talking right now to any specific buy out

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<v Speaker 4>pay later firms or any of those firms in the

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<v Speaker 4>spaces that you just mentioned right now?

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<v Speaker 3>Many of them absolutely.

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<v Speaker 2>So we should expect deals, We should expect deals to be.

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<v Speaker 3>And our LPs are asking for it as well.

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<v Speaker 2>It's got a really neat characters. Do you think that?

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<v Speaker 5>Do you think we're going to have a pretty big

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<v Speaker 5>announcement in about two weeks?

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<v Speaker 2>So I love this. So we guys going to pre date.

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<v Speaker 1>But that's appealing to you that part of the market.

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<v Speaker 5>You know, Carol, As I said, it's about a unique

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<v Speaker 5>position which they have. It's about strong leadership, it's about profitability.

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<v Speaker 5>But most importantly what we love is we're not just

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<v Speaker 5>great investors, we're great operators. We love to roll up

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<v Speaker 5>our sleeves, go out and visit clients, help them think

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<v Speaker 5>about expansion. And when you look at a business that

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<v Speaker 5>is this discipline and this profitable and this focus with

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<v Speaker 5>the market out there and consumer credit and beyond consumer credit,

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<v Speaker 5>it's just this is exactly the kind of investment that

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<v Speaker 5>gets us up in the morning.

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<v Speaker 4>Well, so then what are you going to do, Bob

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<v Speaker 4>for Elliott and his team? You know, you say, you

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<v Speaker 4>guys like to roll up your sleeves. You're making this

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<v Speaker 4>injection of capital. You're now a minority owner in the firm.

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<v Speaker 4>That's just the beginning, right.

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<v Speaker 1>Do you have?

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<v Speaker 5>And foremost, when Carol and Tim call I come here, Tom.

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<v Speaker 2>I like that.

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<v Speaker 4>Maybe, I mean there is down Denver, so maybe you

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<v Speaker 4>could go do some skiing this winter in the ether.

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<v Speaker 1>Now so but yeah, how involved it sounds.

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<v Speaker 2>A good old fashioned fortress.

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<v Speaker 5>Is a great partner. Yeah, there are other institutions that David,

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<v Speaker 5>Seamus and I and Brian Saunders have been very close

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<v Speaker 5>to over the years and other investments or in our career.

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<v Speaker 5>And you know, David was with with with J. C.

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<v Speaker 5>Flowers in my time at Barclays. We know a lot

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<v Speaker 5>of people that would be interested in being capital providers,

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<v Speaker 5>but until now they have not heard about Edge Focus

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<v Speaker 5>and they have not heard about the business model.

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<v Speaker 1>Who are the investors already involved with you? What other

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<v Speaker 1>investors might be coming? And you talk about the capital providers, like,

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<v Speaker 1>who are we talking about all.

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<v Speaker 3>The really large private credit firms you've probably heard of.

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<v Speaker 3>Like I said, we've talked about Fortress publicly quite a bit,

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<v Speaker 3>several others as well.

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<v Speaker 1>Okay, so more, yes, more.

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<v Speaker 4>You know, I noticed in the press release that this

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<v Speaker 4>is focused on hiring efforts. Part of this injection of

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<v Speaker 4>capital partly focused on hiring efforts to build out a

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<v Speaker 4>big part of your team. I'm curious about talent that

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<v Speaker 4>your firm is targeting in a market that's really really competitive.

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<v Speaker 3>Incredibly competitive market. The biggest thing for us is hiring researchers,

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<v Speaker 3>especially in the age of AI, making sure that we

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<v Speaker 3>can find folks who really understand the data, can use

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<v Speaker 3>a tools effectively efficiently. It's one of the most important

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<v Speaker 3>things for us over too. There's our firm is technology based.

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<v Speaker 1>What goes further? You're already very technology focused, AI focused.

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<v Speaker 1>I'm curious, like, what's the next step? Where do you

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<v Speaker 1>go with all of this.

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<v Speaker 3>New asset classes. We've done a lot of considerment secured.

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<v Speaker 3>We have a long way to go in subprime motto,

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<v Speaker 3>we have a really long way to go in point

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<v Speaker 3>of sale, and there's several other asset classes for us

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<v Speaker 3>to get into.

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<v Speaker 4>Bob provide some context here, given your history in banking,

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<v Speaker 4>and you know how what Elliott Elliott's firm is doing,

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<v Speaker 4>in your view, is different from the way that a

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<v Speaker 4>big bank can profile a consumer.

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<v Speaker 5>I think it's a number of things, but I think

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<v Speaker 5>first and foremost, you know, the traditional banks prior to

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<v Speaker 5>two thousand and eight just a very very different approach

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<v Speaker 5>to managing what was in their portfolio. You see the

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<v Speaker 5>quarterly yearnings, you'd see a little bit of provision here

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<v Speaker 5>and provision there, but it was not really asset or

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<v Speaker 5>loan specific. Even in Barclaycard, which was really consumer credit

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<v Speaker 5>and unsecured consumer credit, it didn't have the depth of this.

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<v Speaker 5>So it's the incredible discipline and the incredible technology that

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<v Speaker 5>they've brought to understanding credits so that the separation from

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<v Speaker 5>kind of near prime to prime and subprime and things

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<v Speaker 5>like that, that the number of gradations on that continuum

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<v Speaker 5>are incredible and that's what they've done. So they're much

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<v Speaker 5>much better at managing access to credit and the return

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<v Speaker 5>that comes from credit. And I think we've seen it

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<v Speaker 5>broadly in the market since two thousand and eight. We

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<v Speaker 5>haven't had a blip in credit, We've never had a

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<v Speaker 5>cycle quite like this, and I don't think it's about

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<v Speaker 5>to stop because there are so many more participants, so

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<v Speaker 5>much more technology, artificial intelligence that's being applied to analyzing

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<v Speaker 5>the risks associated with every single.

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<v Speaker 2>Pase of credit. Are you saying this time is different?

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<v Speaker 5>I am saying the cycle is.

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<v Speaker 2>This cycle is different, Okay, because.

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<v Speaker 5>Of technology, because of AI, because of firms like edge Focus.

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<v Speaker 2>Yeah, okay, meaning that, But by the way.

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<v Speaker 5>It doesn't mean they won't be mistakes, right, people that

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<v Speaker 5>don't use that technology. For people that don't use edge Focus,

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<v Speaker 5>you know, there will still be mistakes, but I don't

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<v Speaker 5>think they'll be systemic. They're not going to be across

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<v Speaker 5>the piece. They're not going to be a crisis for

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<v Speaker 5>the industry. They may be a crisis for an individual fund.

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<v Speaker 1>So in other words, not just that the risk is spread,

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<v Speaker 1>but if somebody who doesn't have the great oversight or risk.

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<v Speaker 5>There's still be mistakes made. Carol, Yeah, absolutely, And I

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<v Speaker 5>think what will separate Edge Focus is more and more

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<v Speaker 5>people are going to want to have access to people

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<v Speaker 5>like Elliott and his team so they can move into

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<v Speaker 5>that echelon without trying to build it themselves.

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<v Speaker 1>So let me ask you there are always cycles, and

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<v Speaker 1>I'm just curious how exposed edge focus is typically to

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<v Speaker 1>consumer credit and how will you guys be protected if

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<v Speaker 1>ultimately we see financial conditions tighten. We are things go

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<v Speaker 1>through cycles and then we start to see end user

0:11:09.880 --> 0:11:13.400
<v Speaker 1>delinquencies increase significantly. I mean, these things happen.

0:11:14.200 --> 0:11:14.680
<v Speaker 2>Absolutely.

0:11:14.720 --> 0:11:17.040
<v Speaker 3>We're very long consumer credit, There's no question about it.

0:11:17.160 --> 0:11:18.240
<v Speaker 1>At the end of the day, we need to do

0:11:18.400 --> 0:11:19.480
<v Speaker 1>what do you do to mitigate risk?

0:11:19.600 --> 0:11:22.520
<v Speaker 3>Like how it's all about having that loan level selection

0:11:22.600 --> 0:11:24.360
<v Speaker 3>where we can use all the data we have at

0:11:24.360 --> 0:11:28.240
<v Speaker 3>the individual bar level to ultimately buy better portfolios of

0:11:28.280 --> 0:11:30.079
<v Speaker 3>assets for investors.

0:11:30.360 --> 0:11:32.679
<v Speaker 1>So you're just you're saying the data, the algorithms that

0:11:32.720 --> 0:11:33.480
<v Speaker 1>act like.

0:11:33.400 --> 0:11:35.120
<v Speaker 3>It's and we also have to monitor really well too.

0:11:35.200 --> 0:11:38.000
<v Speaker 3>We've built out tons of proprietary internal platforms where we

0:11:38.040 --> 0:11:40.280
<v Speaker 3>can watch this stuff in a real time basis, understand

0:11:40.360 --> 0:11:42.120
<v Speaker 3>exactly how the consumer's evolving.

0:11:41.960 --> 0:11:45.720
<v Speaker 1>And so far in terms of issues that have gotten

0:11:45.720 --> 0:11:47.440
<v Speaker 1>you into trouble, like what percentage?

0:11:48.360 --> 0:11:51.160
<v Speaker 3>I mean, look, there's no investments ever perfect, right, there's

0:11:51.480 --> 0:11:54.680
<v Speaker 3>you about twenty twenty two, twenty three, for example, inflation

0:11:54.840 --> 0:11:57.080
<v Speaker 3>was real challenging on the consumer. There's no doubt, but

0:11:57.160 --> 0:11:59.120
<v Speaker 3>you learn a lot from that, you add into your algorithms,

0:11:59.320 --> 0:12:02.079
<v Speaker 3>into your models, and ultimately create a much more sustainable,

0:12:02.679 --> 0:12:03.640
<v Speaker 3>defensible platform.

0:12:03.840 --> 0:12:05.880
<v Speaker 4>Well, Carol brings up a good point, and you know

0:12:06.040 --> 0:12:08.640
<v Speaker 4>what I heard from you just now speaks to what

0:12:08.679 --> 0:12:11.080
<v Speaker 4>it sounds like. You have this what you think is

0:12:11.080 --> 0:12:14.120
<v Speaker 4>a very solid real time view of how consumers are doing.

0:12:14.559 --> 0:12:16.280
<v Speaker 4>We try to figure that out each and every day

0:12:16.600 --> 0:12:18.880
<v Speaker 4>on this program by looking at data that we get

0:12:18.920 --> 0:12:22.080
<v Speaker 4>from the FED, data that we get from different bureaus,

0:12:22.080 --> 0:12:23.199
<v Speaker 4>alternative data as well.

0:12:23.559 --> 0:12:24.920
<v Speaker 2>How is the consumer doing?

0:12:25.280 --> 0:12:27.520
<v Speaker 3>Yeah, we have a lot of really cool insight into

0:12:27.520 --> 0:12:29.160
<v Speaker 3>how the consumer is doing. What I can tell you

0:12:29.280 --> 0:12:32.160
<v Speaker 3>is that applications continue to increase across all the platforms

0:12:32.200 --> 0:12:34.559
<v Speaker 3>we have. Applications are up year over year on these

0:12:34.559 --> 0:12:36.720
<v Speaker 3>is that a good percent? You know, we're actually seeing

0:12:36.720 --> 0:12:38.520
<v Speaker 3>delinquencies stay very very consistent.

0:12:38.679 --> 0:12:41.120
<v Speaker 2>But consumers need more credit.

0:12:41.000 --> 0:12:43.559
<v Speaker 3>They are and we're actually seeing an increase overall and

0:12:43.640 --> 0:12:47.320
<v Speaker 3>debt to income ratios across consumers. So although the consumer

0:12:47.400 --> 0:12:49.360
<v Speaker 3>looks to be needing some more credit and that's being

0:12:49.360 --> 0:12:52.000
<v Speaker 3>shown in the applications, delinquencies are being pretty constant.

0:12:52.080 --> 0:12:54.120
<v Speaker 1>Right now, Why is that public? What do you when

0:12:54.120 --> 0:12:57.679
<v Speaker 1>you look at that cycle or those data points, which

0:12:57.679 --> 0:13:01.600
<v Speaker 1>part of it where you said that debt to income

0:13:01.800 --> 0:13:05.760
<v Speaker 1>right is rising and yet delinquencies are low. How do

0:13:05.800 --> 0:13:06.600
<v Speaker 1>we explain that?

0:13:06.960 --> 0:13:09.120
<v Speaker 5>You know, I think it's more discipline in the system

0:13:09.200 --> 0:13:13.920
<v Speaker 5>and more providers of capital. So I think the same

0:13:13.920 --> 0:13:16.080
<v Speaker 5>thing I talked about since two thousand and eight on

0:13:16.200 --> 0:13:18.880
<v Speaker 5>the investor side or the bank side in terms of

0:13:18.880 --> 0:13:22.280
<v Speaker 5>their portfolios. I think consumers are much more mature, much

0:13:22.320 --> 0:13:26.440
<v Speaker 5>more sophisticated. So it's not surprising that you would see

0:13:28.160 --> 0:13:32.120
<v Speaker 5>less of an increase in delinquencies than you would in

0:13:32.160 --> 0:13:34.920
<v Speaker 5>the amount of outstanding credit. That would be unsurprising.

0:13:35.280 --> 0:13:38.480
<v Speaker 4>So, Bob, this is a minority investment in edge focus

0:13:38.559 --> 0:13:38.960
<v Speaker 4>right now.

0:13:39.120 --> 0:13:40.280
<v Speaker 1>Are you going to ask when it's going to be

0:13:40.280 --> 0:13:40.760
<v Speaker 1>a majority?

0:13:40.880 --> 0:13:42.720
<v Speaker 2>Yeah, That's exactly what I was going to ask. Is

0:13:42.720 --> 0:13:46.080
<v Speaker 2>this the beginning of something? Perfection is never Is this

0:13:46.160 --> 0:13:49.360
<v Speaker 2>the beginning of something? Or is this the beginning?

0:13:49.480 --> 0:13:51.360
<v Speaker 4>Is there going to be more money coming from you?

0:13:51.440 --> 0:13:53.160
<v Speaker 4>Or do you think this is enough for them to

0:13:53.200 --> 0:13:54.959
<v Speaker 4>go out do their thing and then there's an exit

0:13:54.960 --> 0:13:55.400
<v Speaker 4>at the end.

0:13:55.760 --> 0:13:58.520
<v Speaker 5>I think the beauty of being Atlas Merchant Capital is

0:13:58.559 --> 0:14:01.439
<v Speaker 5>a couple of things. One is our investors are very

0:14:01.520 --> 0:14:03.920
<v Speaker 5>very patient if we go to them in three or

0:14:04.000 --> 0:14:06.120
<v Speaker 5>four or five years and say this isn't going to

0:14:06.120 --> 0:14:08.880
<v Speaker 5>be a normal cycle. We want to stay in this longer.

0:14:09.200 --> 0:14:12.280
<v Speaker 5>We have a number of large sovereigns. The biggest issue

0:14:12.280 --> 0:14:16.400
<v Speaker 5>they face every day is reinvestment, not exits. So we

0:14:16.520 --> 0:14:19.520
<v Speaker 5>have that option in terms of the relationship we have

0:14:20.760 --> 0:14:23.440
<v Speaker 5>with our investors. But I think most importantly, if there

0:14:23.560 --> 0:14:27.280
<v Speaker 5>was need for more capital because the business is growing

0:14:27.520 --> 0:14:31.680
<v Speaker 5>and valuations are going up, that's a good presentation for us.

0:14:32.080 --> 0:14:34.360
<v Speaker 5>It doesn't mean we would go to majority. That would

0:14:34.400 --> 0:14:38.600
<v Speaker 5>be unusual, and that might be in a distress situation,

0:14:38.680 --> 0:14:41.960
<v Speaker 5>which would be the farthest furthest thing from our mind

0:14:42.000 --> 0:14:44.400
<v Speaker 5>in this situation. But if we have opportunities down the

0:14:44.440 --> 0:14:49.200
<v Speaker 5>line to add additional investment at higher valuations because the

0:14:49.240 --> 0:14:52.320
<v Speaker 5>business is growing, both in terms of products and in

0:14:52.400 --> 0:14:54.640
<v Speaker 5>terms of customers and clients, that's fantastic.

0:14:55.160 --> 0:14:57.680
<v Speaker 1>So we'd be remiss. You've only got about a minute

0:14:57.800 --> 0:15:00.320
<v Speaker 1>or so left here, Bob. You have seen, you know,

0:15:00.560 --> 0:15:03.960
<v Speaker 1>iconic for anybody who's watched Wall Street and financial markets,

0:15:04.000 --> 0:15:07.200
<v Speaker 1>you've seen a lot of different cycles, good, bad, different

0:15:07.840 --> 0:15:10.000
<v Speaker 1>What do you make of this market cycle, which is

0:15:10.360 --> 0:15:13.400
<v Speaker 1>there's angst and yet we hit records and how do

0:15:13.440 --> 0:15:14.000
<v Speaker 1>it makes sense?

0:15:14.360 --> 0:15:16.800
<v Speaker 5>Well, I think two things, Carol, and I think on

0:15:16.800 --> 0:15:20.240
<v Speaker 5>one side and I see this. I've been very, very

0:15:20.280 --> 0:15:23.320
<v Speaker 5>fortunate to be the chair of the Advisory Board for

0:15:23.400 --> 0:15:27.040
<v Speaker 5>the US Export Import Bank with John Jovanovic and the team,

0:15:27.080 --> 0:15:30.600
<v Speaker 5>and they, for the first time in decades, are profitable.

0:15:31.880 --> 0:15:35.760
<v Speaker 5>They are really driving performance with middle market companies across

0:15:35.800 --> 0:15:39.600
<v Speaker 5>the US. And what shocks me is how profitable they are.

0:15:39.760 --> 0:15:42.320
<v Speaker 5>What shocks me is how excited they are at the

0:15:42.360 --> 0:15:47.520
<v Speaker 5>tailwinds coming from this administration in terms of less regulation,

0:15:48.280 --> 0:15:52.160
<v Speaker 5>more pro business, and so the CEOs of middle market

0:15:52.160 --> 0:15:58.080
<v Speaker 5>companies across the States are pretty excited. I think. I

0:15:58.080 --> 0:16:00.480
<v Speaker 5>think in terms of the cycle with AI people are

0:16:00.480 --> 0:16:02.600
<v Speaker 5>talking about, and I suspect that's the other piece.

0:16:02.720 --> 0:16:03.600
<v Speaker 3>Yeah, it is.

0:16:04.080 --> 0:16:05.200
<v Speaker 5>I think there'll be a correction.

0:16:05.840 --> 0:16:07.160
<v Speaker 2>There'll always be a correction.

0:16:07.840 --> 0:16:13.400
<v Speaker 5>Every technical innovation we've had, from railroads, from electricity, from

0:16:13.480 --> 0:16:16.360
<v Speaker 5>the internet will have a massive correction at some point.

0:16:16.440 --> 0:16:19.160
<v Speaker 5>It doesn't feel like it's going to be tomorrow, but

0:16:19.280 --> 0:16:22.800
<v Speaker 5>you know what, with any technical revolution like this, there's

0:16:22.840 --> 0:16:25.480
<v Speaker 5>going to be corrections. It's not going to be one

0:16:25.840 --> 0:16:28.480
<v Speaker 5>doesn't feel like it's around the corner. But I can

0:16:28.520 --> 0:16:30.840
<v Speaker 5>assure you there'll be a correction. I just can't assure

0:16:30.840 --> 0:16:31.680
<v Speaker 5>you when it's going to be.

0:16:31.960 --> 0:16:32.280
<v Speaker 2>I don't know.

0:16:32.280 --> 0:16:34.680
<v Speaker 1>Everybody keeps talking about it's good till twenty thirty, and

0:16:34.720 --> 0:16:35.240
<v Speaker 1>then it's like.

0:16:36.320 --> 0:16:39.560
<v Speaker 4>I feel like that's just what the hope's not a strategy.

0:16:39.880 --> 0:16:42.160
<v Speaker 1>That is so true, gentleman, when you have more news,

0:16:42.280 --> 0:16:44.560
<v Speaker 1>please come back. You really enjoy this, and thank you

0:16:44.640 --> 0:16:46.360
<v Speaker 1>for giving us this opportunity.

0:16:46.480 --> 0:16:47.240
<v Speaker 3>Thanks for having us.

0:16:47.360 --> 0:16:50.240
<v Speaker 4>Fob Diamond, founding partner and CEO of Atlas Merchant Capital.

0:16:50.440 --> 0:16:54.120
<v Speaker 4>Also he's chairman of hyper Liquid Strategies, among many other things.

0:16:54.280 --> 0:16:57.480
<v Speaker 4>Also here Elliott Lorenz, the co founder and CEO of

0:16:57.760 --> 0:16:58.440
<v Speaker 4>Edge Focus.

0:16:58.480 --> 0:17:00.320
<v Speaker 2>Guys, thanks a lot, thank you, Thank you. Kill