00:00Are there any opportunities arising? Is there some nerves? I mean, BDC is selling off loans,
00:05trying to meet those liquidity redemptions. Is now an interesting time to maybe be a buyer in
00:10the market? I think now is an interesting time. There's going to be a huge amount of secondary
00:16activity in the private credit market, and we are well positioned for that and have spent a lot of
00:21time thinking about it. Not to give everything away, but what are you looking for as you sort
00:25through these secondary offerings coming up? We're looking for, we love a discount, of course.
00:30Who doesn't? But we're looking for fundamentally good businesses that can withstand, you know,
00:36people are forced sellers for a variety of reasons. Many of the big asset management firms have to meet
00:41redemptions, so they're going to be selling things to meet the redemption cues. You're going to have
00:46a number of institutions that need to generate liquidity. We've seen this in other asset classes,
00:50certainly in private equity and venture capital. They need liquidity. They haven't had
00:55distributions for some time. So we're looking for the gems that we can access because somebody is
01:01effectively a non-economic seller. By the way, we had the PIMCO president on who was like,
01:07everything that's being sold right now is drunk. I don't like it. What have you. Are there gems out
01:12there right now? Are you kind of like waiting on the sidelines to find them? We bid on, this is
01:17not
01:17credit, but we bid on an energy portfolio of, it was all secondaries. We got outbid pretty aggressively.
01:24Again, we like a discount. We drive a hard bargain. Unfortunately, the seller didn't like our
01:29pricing, but it was a fantastic portfolio. It didn't trade at par. It traded at a modest discount,
01:35but it was a gem of exposure. We would have loved it. What about in software right now? Any babies
01:43being thrown out with the bathwater that you like? So this is like my favorite topic. My husband is a
01:48public equity investor and he's very focused on software. So when we go home at night, we talk
01:53about software. Oh, what your dinnertime conversation. It's riveting. I think software is not one big
02:00bucket. I think you really have a bifurcated industry. You certainly have seat-based SaaS models
02:06that are going to be disrupted by AI. There's no question. We have a lot of humility around not knowing
02:13when we're going to see all of that disruption play out. On the other side, or the other half
02:18of the bucket, I think, are deeply embedded vertical software where they're essential to workflows.
02:24They're very sticky. Those, I think, AI will be really a tailwind for. But again, on our team,
02:33we have a lot of humility around not necessarily knowing how to differentiate and what the life cycle
02:40of those ones that we think AI will be a tailwind and they will withstand. Is that five years? Is
02:46it seven years? Is it 10 years? We don't know.
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