Q3 2021 StepStone Group Inc Earnings Call
[music].
Good afternoon, ladies and gentlemen, and welcome to step stone for fiscal 'twenty and 'twenty, One third quarter earnings conference call. At this time all participants are in a listen only mode. Later, we will conduct a question and answer session and instructions will follow at that same time as a reminder, this call will be recorded I would now like to turn the conference over to Michael Kim of ICR.
Stones and Investor Relations liaison. Please go ahead Michael.
Thank you and good afternoon, everyone.
Joining today are Scott Art co Chief Executive Officer, Jason.
Jason Matt President and co Chief operating officer.
Mccabe head of strategic planning.
And Johnny Randall Chief Financial Officer.
During our prepared remarks, we will be referring to slides, which are available for viewing or download from our website at step stone group dotcom.
Before we begin I'd like to remind everyone that this conference call as well as the presentation slides contain certain forward looking statements regarding the company's expected operating and financial performance for future periods.
Forward looking statements reflect management's current plans estimates and expectations and are inherently uncertain and are subject to various risks uncertainties and assumptions.
Actual results for future periods may differ materially from those expressed or implied by these forward looking statements due to a number of risks or other factors that are described in greater detail under risk factors.
Step stones, IPO prospectus filed with the U S Securities and Exchange Commission on September 16th.
2020.
Turning to our financial results, we reported GAAP net income of $107.4 million for the quarter GAAP.
GAAP net income attributable to step Stone Group, Inc.
With $25.6 million for the quarter ended December 31st 2020.
Fee related earnings was $22.3 million for the quarter and increase of 5% from a year ago.
Adjusted net income was 27.0 a million dollars or 28 cents per share up 50% from the prior year.
Importantly, the prior year's results included approximately $4 $8 million of revenue for $2 million of fee related earnings.
And $3.7 million of pretax Eni related to retroactive fees net of cost.
Including additional closes for steps down and secondary opportunities funds for and one time success based advisory fees.
And finally as disclosed on slides 23, and 24 of the earnings presentation.
Foreign currency translation gains and losses have been reclassified from general and administrative and other expense to.
Other income loss and our GAAP income statement.
And this change had no effect on Eni, but did result, and removing FX volatility from FRE.
With that I'd like to turn the call over to step stones co Chief Executive Officer, Mr. Scott Hart Scott.
Thanks, Michael Good afternoon, everyone and thank you for joining our call.
Before we get started I just wanted to say that I hope you your colleagues and all of your loved ones are continuing to stay safe and healthy during this time.
For over a decade now we it steps down and develop the strategy platform and culture to serve the needs of our clients.
Today, our clients are relying heavily on steps down more so than ever before for our insights and solutions and they rethink their portfolios given the global pandemic.
Lower for longer interest rate environment, and increasingly elevated asset prices.
Our job is to help and fulfill their purpose on behalf of their stakeholders.
To do this we have built one of the most comprehensive private market solutions platforms and our industry.
Turning to slide three our global team and footprint allow us to manage market risk, while capturing growth from increased allocations to private markets are.
Our specialized multi asset class capabilities help us deliver holistic yet customized solutions for sophisticated institutional and retail investors.
Our investment and data technology and risk management tools enables us to develop and implement and be solutions and are seamlessly connected way with our clients.
All of these factors combined contribute to the insights and diversification both in terms of our clients' portfolios and our own business that have helped steps down and successfully navigate through a difficult environment in 2020.
And that is showing up and our results today.
Turning to slide for as Michael mentioned, our adjusted net income for the quarter was $27 million or 28 cents per share up 50% from the prior year.
Net result was driven by a combination of topline growth and favorable expense environment and modestly higher realization activity for.
For the 12 month period, ending December 31, our adjusted net income was up 38 per cent.
Reinforcing the positive long term growth trend of our business.
Johnny Randall will provide additional detail around the numbers later in the presentation.
We continue to operate steps down with a long term mindset and encourage our employees clients and investors to share a similar view.
Over the last 12 months, our assets under management grew to $80 billion, which is up 30% year over year driven by successful capital formation efforts for both commingled funds and separately managed accounts.
Our fee, earning AUM reached $47 billion up 18% from the prior year with the main drivers of that increase being our investment team's ability to successfully source and invest approximately $5 billion from separately managed accounts and approximately $2 billion and new commitments to co mingled funds.
And you may recall from prior conversations that difference between AUM and fee, earning AUM is largely represented by unemployed fee, earning capital or capital on which we will earn fees once deployed reactivated.
As of quarter and this amount stood at over $17 billion.
Looking ahead prospects for management fees remained healthy driven in large part by our future deployment of the $17 billion.
Prospects for realized carried interest and the future are similarly healthy as reflecting on our gross accrued carry which increased by $151 million during the fiscal third quarter for 31 per cent to $637 million.
As you recall accrued carry is reported on a quarter lag and so the broad based recovery and the capital markets as of September 30th is reflected in this number.
In terms of profitability FRE margins were flat at 32% for the current and prior year quarters and.
600 basis points for the year to day period to 33%, reflecting revenue growth and importantly, a more favorable if temporary expense environment.
Fee related earnings for the quarter totaled $22 $3 million up 5% year over year and 48% year to date.
Quarter over quarter growth was skewed by the $4 $2 million of FRE included and the third quarter of the prior fiscal year related to the previously mentioned S off for retroactive fees and onetime success based advisory fees.
Now turning to capital management I am pleased to report that the board declared a quarterly dividend of <unk> per share of class a common stock reinforcing the high free cash flow nature of the business and our capital light model.
Finally, I want to take this opportunity to once again, thank all of step stones team members for their ongoing passion and commitment to providing best in class investment solutions to our clients and a thank you to our clients for your trust and partnership as we grow together.
With that I'll pass it over to Mike Mccabe, our head of strategic planning.
Mike.
Great. Thank you Scott.
For today's call, we thought we would spend a minute on steps down and strategic focus and priorities looking.
Looking back on how steps two and has evolved over the past decade, we attribute much of our growth to a client centric culture at <unk>.
And on slide six our total asset footprint has grown at a compounded annual growth rate of 59% since inception and continues to experience strong growth today.
Our geographic footprint is designed specifically to serve our clients.
Our continued investment and our capabilities and solutions as a direct result from listening to our clients needs.
Now turning to slide seven as we look ahead, our attention will be focused on six key themes.
And one.
Continuing to grow with our existing clients through a combination of re ups and expanded mandates.
Two growing with our new clients globally as a reason.
And all of our business development activities.
Three expanding our distribution channel for private wealth clients.
And for leveraging scale to drive operating margins.
Five and debt investing and data and technology solutions and chicks pursuing accretive transactions to complement our platform.
Placing a finer point on the first two areas of focus turning to slide eight both point re ups and new client wins were strong for the 12 month period ending December 31st.
Our net new AUM growth totaled $13 $4 billion over the past year on.
Of which $9 8 billion is attributable to existing client relationships.
One 8 billion to new client wins, and $1 8 billion to commingled fundraising.
This ability to grow with our existing clients that served us well, particularly as there's been a flight to the familiar and we believe a flight to quality during the pandemic.
Geographically nearly 90 per cent of the new assets raised came from outside of North America.
And with significant contributions from Europe, and Middle East and Asia, Australia.
This clearly highlights the global nature of our platform and client base and our ability to participate and the growth and private markets allocations that is taking place globally.
Yeah.
Turning now to the retail channel capital formation efforts for subprime has commenced and we held our first close on October 1st 'twenty and 'twenty three.
And through December 31, we had invested and committed 45, and a half million dollars and cap.
While modest in size and still on its early days returns for subprime stood at a healthy 24, 9% since its inception with exposure to both secondary investments and co investments.
Pleased with the launch so far and look forward to providing updates and subsequent quarters.
Before handing the call over to Jonny Randall.
Like to touch on our business mix of our asset classes.
Turning to slide nine three years ago 58 per cent of our fee, earning AUM came from private equity while 42 per cent came from real estate private debt and infrastructure.
Today, the mix has shifted in favor of these other asset classes, which now accounts for 55% of total fee, earning AUM.
During this strategic shift it's important to note that our overall blended management fee rate has held relatively steady at 52 basis points as shown on slide 10.
With that I'll now pass it over to our Chief Financial Officer, Johnny Randall for a more detailed discussion around our financials Johnny.
Thank you Mike moving on to Slide 12 for the presentation did touch on financial highlights and.
Insistent with the prior quarter, our financial performance reflected continued strong growth in fee, earning AUM.
And positive revenue trends with temporarily depressed travel related spending related to the pandemic further enhancing fee related earnings and adjusted net income.
And our first full quarter operating as a public company, we have seen the impact of elevated professional fees and D&O liability insurance and hitting our G&A expense line.
Earning day, one and ended the quarter at $46 6 billion up 18% year over year management and advisory fees for the quarter increased 6% to $70 1 million and is up 22% year to date.
And we have highlighted and the last bullet point results for the prior year quarter included approximately $4 8 million retroactive soon related to additional closes for steps now and secondary opportunities fund for and one time and success based advisory.
And the related earnings totaled $22 3 million for the quarter up 5% year over year and is up 48% year to date.
And year over year growth for the quarter was skewed by $4 2 million of FRE included in the prior year quarter related to the retroactive fees and success and previously mentioned.
And I grow share and grew 56 per cent for the quarter and afford and 4% year to date.
Turning to other key highlights on the table and it's.
Floyd parent and capital that will generate teens overtime as this capital is invested or activated today and over $17 billion.
December 31st.
I've already margins held steady at 32 per cent for both the quarter and prior year quarter and were up 600 basis points year to day to 33%.
Reflecting revenue growth and a favorable expense environment.
As I mentioned last quarter, we don't view this margin is a normalized operating margin.
Margins are elevated given the current operating expense environment.
Continued to benefit from lower G&A spend until we are able to return to our offices and again seeing clients and person as a counter to this benefit we will continue to see higher costs associated with being a public company migrate into our G&A and flying over the next few quarters we.
We have approximated debt as reported results were adjusted for normalized G&A and other expenses that did not occur.
FRE margins for the quarter and year to date would be 400 500 basis points lower than reported.
Trends will influence our G&A expense and overall margin for the near term.
Gross realized appointee totaled $26 4 million for the quarter up 33 per cent year over year.
Quarter over quarter trends and comparisons can vary reflecting the timing of realization activity that is beyond our control.
27, and the appendix provides a quarterly and LTM net performance and trends.
As we've discussed previously we believe the longer term view on performance fees is more on appropriate.
And finally, adjusted revenue increased 12% for the quarter and 18% year to date.
Turning to slide 13, we walked through core revenue trends in more detail on a year to date and last 12 month basis.
Starting with management and advisory fees at the top and your revenue was up 22 per cent for the year to date period and 23 per cent for the last 12 months more specifically and management fees increased 25% year to date and 2006% for the last 12 months period, driven by strong growth in fee, earning day land across our estimates and call me up on.
And I've mentioned and as shown on the bottom of page 10 weeks and steady overall blended fee rates and the low 50 basis point range.
Advisory related fees were up 13% year to date and 14 per cent for the last 12 months, reflecting increased client activity.
It provided a more detailed breakdown on management and advisory and on page 26, and the appendix.
Gross realized performance fees of 48 million for the first three quarters for fiscal 'twenty, one up slightly compared to the prior fiscal year to date periods and down about 5 million over the last 12 months for.
Afflicting relative realization activity for these periods.
As mentioned page 27, and provides quarterly and L. P and net realized performance fee trends.
The bottom chart shows adjusted free cash revenue, which increased 18% year to day and 16% over the last 12 months driven.
Driven by higher management, and advisory fees, and partially offset by lower realized performance fees for the LTM period.
Turning to our core profitability metrics on slide 14 fee related earnings of 68 million for the first three quarters of fiscal year, 'twenty and 'twenty one of our 48 per cent compared to the same period a year ago.
Over the past 12 months was up 50% to 80 for them.
Year over year growth was driven by higher from here.
Oh, and rising client advisory activity and expanded margins.
FRE margins increased from 27% for 33 per cent for the first three quarters of 'twenty and 'twenty, one 'twenty from 25 per cent for 31% for the last 12 months.
Consistent with earlier comments, we will continue to benefit lower G&A spend until we're able to return to our offices and again seeing clients and personal.
The counter to this benefit will continue to see higher costs associated with being a public company and our G&A expense line.
Weighted earlier, we'd have approximated that it's reported results were adjusted for normalized G&A expenses that did not occur.
Operating margins year to date will be for hundreds of 500 basis points lower than reported and that would be down slightly less and that on an LTM basis.
The impact of these trends will influence margins and the near term and we would expect these margins to migrate down on it and near term.
Adjusted net income increased 46% and year to date and 38 per cent for the LTM period, driven by higher fee related earnings from <unk>.
And with higher net realized performance fees.
On slide 15 on a couple of key balance sheet items first growth accrued carry continues to build and in the quarter at $637 million up 66% over the last 12 months.
As a reminder, changes and our accrued carry balance with what unrealized gains or losses and valuation of the underlying portfolios on them.
One quarter lag.
We think of accrued carry as a backlog of amounts that will convert to cash over time, given the diversification of our investment portfolio. The number of carry eligible program.
And GP provided of course that investment performance remained strong across cycle.
On the bottom chart, our proprietary investment portfolio ended the quarter at $63 4 million up 28% over the last 12 months, primarily reflecting market appreciation and net addition.
Unfunded commitments to these programs held steady from the prior quarter at approximately $61 million.
As shown on slide 16, we manage a large pool of performance fee eligible capital over 41 billion as of December 31st and.
Importantly, this capital is widely diversified across approximately 120 programs, including over and with accrued carry position on.
And then and 60% of our unrealized carry at year end, sorry, the programs with the 2015 or earlier than day, indicating that these funds are passed there and that's the theory and and harvesting.
Approximately 64% of its carrying source from vehicles with deal by deal waterfalls and he realized carry for at the time and investment.
We've provided additional material on the appendix for review, but this now concludes our prepared remarks on there right now I'll turn it back over to the operator to open up the lines for any questions.
Operator, please open up the call. Thank you.
At this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is and the question queue. You May press star two if you'd like to remove your question from the queue and for participants using speaker equipment and may be necessary to pick up your handset before pressing the star keys.
One moment, please while we poll for questions.
And our first question comes from Ken Worthington with J P. Morgan. Please state your question.
Hey, good afternoon, and thank you for taking my questions.
Maybe first on specs are we're thinking a bunch about specs and and I would love your thoughts here, so things for thinking about or what is what are your specs mean for the pace of realizations and the industry.
On our specs competitors to the private market companies that you deal with from an investment perspective or or or not.
And does step stones thinks that it makes sense to maybe get them fault and and launching specs or is that something that sort of more outside of of what you'd be interested in participating in and the future.
Hi, Dan Thanks, Thanks for the question.
This is Scott.
We like many others and it sounds like like yourselves are also closely observing what's going on and the spec market.
And making not only about what it means for Dave and Mark generally, but what does it mean for steps down and so I think taking those those questions and turn.
On the realization impact is really where we have seen the most immediate impact for ourselves as well and I think we talked during the last quarter.
Quarterly earnings call about the fact, they really all different exit routes are currently open and not only sales to financial sponsors and strategic but obviously the IPO window is open and we're seeing new realization routes like bags and <unk>.
Asian vehicles, so that that has actually been the most immediate impact for us across our private equity co investment portfolio. For example have now seen at four foot for companies exited through stacked transactions and we do think that will have an impact going forward here, particularly when you think about the amount of capital that's been raised.
From a competition standpoint, I think that's one that we're going to continue to monitor going forward, but haven't really seen it to date.
As we look back at the hundreds of for example, private equity co investment transactions, we've looked at over the last 12 months.
We can't think of one where we lost out to is back there. So it doesn't seem like we are seeing and as an immediate and competitive threat, but clearly again with the amount of capital. That's been raised is something that we will we will continue to keep it keep a close eye on.
And finally, the last part of your question in terms of whether it's a business opportunity for steps down like I think that's one that we're going to continue to tend to monitor and evaluate and to date. It is not something that we've decided to pursue but again, we will closely monitor that going forward.
Awesome and then just maybe a follow up I know you guys are our highly diversified.
But this quarter there were zero distributions and the co mingled funds and last quarter at least it rounds to zero and and distribution and and SMA is theres something netted out of distribution tourists. This year I was sort of a clean number and then related to that your performance fees, where we're nicely elevated this quarter, but again the distributions for <unk>.
Tiny and S S amaze and zero and commingled funds. So is their recycling going on or maybe another explanation as to why the distributions were you know sort of teeny tiny, but the performance fees were nicely elevated.
Yeah, So Ken I'll start and maybe maybe Johnny random might add on to this but the the key driver of that is some of the distribution activity that we have seen it has come from some of our early <unk>.
Separate accounts as opposed to the commingled funds and certain of those separate accounts continue to pay fees on committed capital there and sort of a step down schedule, but it's not it's not driven specifically by net of debt invested capital for example, and so you don't you don't see those distributions coming out and the fee, earning AUM bridge, there, but let me pause Johnny just.
And anything that you would add to that.
No Scott that's right and I would just say on the commingled funds in particular.
The distributions have been largely skewed towards sma's.
Came through that distribution activity and.
Realized performance fees, but Scott's right the distribution activity has been largely out of.
Vehicles, where the fees are either fixed or based on commitments, so no change and fee, earning AUM.
Got it okay. It makes perfect sense. Thank you so much.
And our next question comes from Alex Blaustein with Goldman Sachs.
Hi, good evening and sustained on Jacoby filling in for Alex. Thanks, So much for taking my question.
Just on the capital management, a two pronged question first.
Really nice to see the dividend declaration, how should we think about the dividend growth from here, what's the peg to and then second you had touched on pursuing accretive acquisitions what types of.
Acquisition targets on hydro up on growth with high at the moment.
Sure Dan. Thanks, Thanks for the question I'm going to turn it to Mike Mccabe to address those that Theres a couple of questions.
Sure. Thanks.
So for taking the questions and order from a dividend. We're also also thrilled to have announced early on and our life is and as a public company too.
Issue a dividend.
It's modest in size for sure and it's something that we're going to continue to focus on go forward just kicked Jason.
And just keep going on.
Right.
And and really what we're looking at doing and sustaining our payout ratio going forward and we do it.
Two questions.
And the firm growth right.
Part two to your.
Your question has to do it and.
Good day and accretive acquisitions like we are we built the firm through.
Very strategic and targeted acquisitions and investment teams to build out the platform of private equity real estate infrastructure and private credit.
As we think about our business model going forward, we feel we've built the four pillars for growth and have.
Broad geographic footprint globally.
As a result, I think if we and our.
Okay.
Moving forward it will be really to fill in and augment the teams that are currently operating in those for asset classes. So we really view it as more of an opportunistic.
Strategy and rather something we're strategically focused and on AD.
As a priority to go out and buy a company and Thats really not what we're thinking it's really about filling in.
And where we could add and augment talent and skills across the investment team.
Yeah.
Got it that makes a lot of sense and then for.
Alright, just shifting gears to fundraising and specifically.
See Prime fund if I have the acronym.
And I couldn't I'm correct.
So nice to see the group.
Fund raising their cash kicked off.
How should we think about kind of the contribution over time is there some sort of.
Fund raising number debt that you guys are thinking about it as kind of a potential.
Run rate fundraising number over time.
Help us put some guardrails around the contribution there.
Sure Jason why don't you take that one.
So Scott I think we had a technical glitch here and Jason was dropped.
Okay.
Alright, one moment, we're going to get Jason.
On a case and either.
Okay.
Okay.
For a moment it says durations back on now.
Well look I think and I think in that case, I think any of US Ken can probably respond to the question and so and as Mike mentioned during the prepared remarks. He continues to be quite quite early days in terms of.
Of our effort with the C. Prime product we are quite pleased to have had the initial closing back in October and have continued to make progress since then.
Now our approved across about 35 different platforms at this stage and have seen some good enthusiasm across the RIAA. The IBD and wire has housed channels here and so again, we're going to continue to take it month by month and quarter by quarter, but pleased with the pleased with the initial progress that we have made to date there.
Got it okay perfect. Thank you very much.
And as a reminder, if you'd like to ask a question. Please press star wanted your telephone keypad.
Our next question and.
Meantime comes from Mike Cypress with Morgan Stanley.
Hey, good afternoon, and thanks for taking the question.
Just wanted to circle back on the capital raising on the SMA side and it looks like about 85% of the new estimate flows were coming from existing clients versus about 15, I think from new clients. So just a question around that I guess on the existing client side, what sort of scaling are you seeing.
In terms of clients re upping and and how is that scaling comparing comp.
Fair to say the last couple of years any anything noticeable there and then on the new client side that 15%, maybe you could just talk a little bit about your approach to to new client acquisition and just a bit about that that process. There and maybe you could touch up on the cross selling and how thats progressing there too.
Yeah.
Sure. Thanks, and thanks for the question, Mike that debt is about right that about 85 per cent of the new capital raising for our separate accounts has come from existing clients. It's not all rehab activity. Some of that is also extensions of existing mandate and into different areas, but if we do focus more specifically on the rehab rage.
And and how we've seen that scale over time, it can be a bit difficult to generalize and some cases, we will see clients rehab at the exact same separate accounts side, where they've really just thought about that as part of their.
Ongoing allocation planning, whereas in other cases, we will see for example, a 50% or a 100% increase in our separate account size and.
As you know maybe the concept and the strategy as it's proven out, but it's a bit difficult to generalize.
Generalize there on the on the new clients look I think we had 75 business development and client facing professionals around the world here and that has obviously continued to be a significant focus of ours is winning new clients and new geographies and new strategies certainly <unk>.
During the Covid environment that has been a bit more challenging I think Mike made reference to the flight to the familiar and some of the flight to quality that we've seen and and given the existing base of clients. We have that is something that has worked at work in our favor, but certainly again with the efforts we are making on and new business development front and would expect that to contribute to future set for.
Accounts ad growth as well.
Yes.
Great and just maybe a follow up shifting over to the carry side on Peach.
Peach 16, I saw that you showcase about 637 million and and accrued carry.
Hoping you could give us a sense on where their fair value stands in terms of the portfolio, but that I guess represents I thought I heard on 41 billion figure, but wasn't sure what exactly that represented and I'm just trying to get a sense of where the fair value as compared to say the cost space and in terms of where that smart and then when I look at the Pie chart here shows that about two thirds of the carrier.
Positions are from 2015 and earlier vintages are vintage funds.
Just curious how you're thinking about the time frame for those to be harvested is it reasonable that that could come out over the next two or three years and majority or do you think it would take a bit longer than that to get a majority of that monetize from that sort of didn't deter.
Sure, maybe Mike maybe I'll start by commenting on the second part of the question and then maybe Johnny can can add on the first part of your question there.
There's a significant portion of debt that carry balance it is in some of these earlier vintage of your funds.
And as we think about the realization environment more generally and it's really building off of some initial comments. We have made at last quarter, we had started to see.
And some nice pick up and activity in.
And the third at quarter that continued sorry, the calendar third quarter and that continued through year end and even into the early part of 2021 here and so when we think you would think about the maturity of some of those investments we do feel like there ought to be a nice pipeline of exit opportunities over the coming couple of years here for some of those.
Earlier vintage year funds and really separate accounts and those were large separate accounts and the early days, but Johnny I don't know if you have the number to address Mike's first question on the valuation there.
Yeah, Scott and and thanks for the question, Mike I don't know that we've disclosed that exactly I think what we provided there was maybe some data points that would help on that I think and and the S. One and another filings you talked about the range of carry and and kind of you know kind.
And kind of ranges from 5% to 15%. So if you kind of pick up pick a number and the middle there and and things of that is the carry debt for.
On an unrealized basis and if it was 10% et cetera, then you'd be able to kind of back into what the unrealized gain is now.
Haven't said, specifically how much was invested of those programs.
But I think you know the 637 million using an estimate of the blended carry rate would get you the unrealized gain.
I think we've also provided some some performance track record detail and the appendix. It would kind of give you a sense of the programs that have been investing and the size of those investing so it's not perfect I can't give you an exact answer we just we havent disclose that exactly but.
So let me provide you some bookends I guess, there's some in some ways to kind of get there. The 41 billion performance eligible performance fee eligible capital. That's the total pool of capital and not all of that has been put to work and for that number has been growing over the past year.
But I'll pause I guess, the sex and second just to see if that provides some help on trying to get what that fair values.
How do you think about the gain on those portfolios.
Got it okay can I just.
And just clarify there. So the 41 billion that would include dry powder or so do we know how much that would be embedded in there to kind of back out to kind of get a sense of how much may be on the ground and then just to clarify on the unrealized carry positions on those vintages for the actual investment year or the vintages for the underlying fund vintage here.
What was shown on the chart is the I guess the fund vintage so.
And most of our friend's husband and a three to five year vintage Oh, sorry investment periods and so when we reference 2015 year or prior than those programs.
It started in 2015 would have been investing and 2015, 16, and 17 et cetera. So that as the program start of the fun and this chart not looking through the underlying investment.
Great. Thank you and sorry and on the other part we are we're trying to figure out the best way to disclose here and I'm sorry for your other question about how much of the 41 billion as and dry powder.
And no taken wont want to think about ways to try and provide some context around and there's not a number out there I can point you to at the moment, though.
Okay, great. Thanks, so much for taking my questions.
Well, ladies and gentlemen, we have reached the end of the question and answer session and now I'd like to turn the call back over to Scott Hart for closing remarks.
Well in that case that and thank you everyone for your time and interest and we look forward to continuing to discuss our progress on future calls and hope everyone has a great day rest of their night. Thanks.
Yeah.
Okay.