So that’s one big reason why debt’s going to increase, is that baby boomers are going to increasingly like having debt investments and investment managers are going to increasingly offer it because it allows them to hold more equity in the asset at the end of the day once the debt note is paid off, whether that’s over seven, 10, or 20 years. Another reason why debt is increasing right now, short term, is just the economic cycle has been positive for so long that a lot of smart players are saying, “Well, we’re very choosy and selective on what investments we’re doing, but we will still do several debt investments as long as the collateral is excellent, because worst-case scenario, we waited out or we’re able to collect on that asset.” That’s the reason. Another reason is that I just think a lot of family offices, once they get highly formalized and professionalized, realize they’re overweighted on equity and underweighted on debt. And that could be in private equity, it could be in real estate. And I just find that once somebody gets really experienced in making LP equity investments, they find interesting, more sophisticated, potentially complicated, but sometimes less risky for the return investments on their debt side, that you can only really do and sometimes get the deal flow for once you have made investments and built your network on the equity LP side. So for those reasons, I just see the future of debt in the family office industry and investment management growing. I’m pretty confident on that from the relationships we have, the several dozen, $100 million-plus families with 25 clients over the last decade in 120 conferences that we’ve put on in the family office space through the Family Office Club. That’s a trend that I’m seeing confirmed all the time. To learn more about our work, please visit centimillionaires.com or familyoffices.com. Thank you.
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