Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Roger Freeman – Barclays Capital
Roger Freeman – Barclays Capital
On hybrid private equity you had what $1 million incentive fees there and you had $160 million in realizations? I’m curious I guess I would have thought maybe you’d see some more performance fees there because that is the credit fund right? That’s done fairly well?
Pete Briger
That payout and recognition of income there is on an as realized basis. What we talked about was an NAV as opposed to realizations. The realizations at this point have been quite limited.
Roger Freeman – Barclays Capital
How has that distressed credit fund done? I think it was up something close to 30% in the second quarter, how’d it do in the third quarter?
Pete Briger
I think that its up close to 100% on the year, I may be off by a couple percentage points but its done very well, I think we’ve been positioned correctly.
Roger Freeman – Barclays Capital
Has that been predominantly resi?
Pete Briger
I think that we’re not going to talk about our specific positions in the fund. The specific number that US for in the quarter it was up I think 35% in the quarter.
Roger Freeman – Barclays Capital
With respect to some of the distressed operating more broadly we’ve heard from other alternative managers that there’s an increased appetite on the part of banks to sell down some of their residential whole loan exposures particularly because they are generating stronger operating income and it allows them to take some of those marks. Are you finding that to be the case or are you buying portfolios or loans from banks now?
Pete Briger
We are buying portfolios of loans from banks and other financial institutions. I would say at this point regulated financial institutions that are solvent are not selling significant portfolios of debt. Most of what we’re seeing right now is out of the shadow banking community out of bankruptcies and other types of liquidating entities. I would expect that the sell off of assets from solvent financial institutions and institutions that are being taken over by the various governments will steadily increase very quarter for the next two or three or four years.
Roger Freeman – Barclays Capital
I guess you’re in the process of raising money for a new fund. Have you had a closing on that, can you tell us much you’ve raised so far?
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