Operator: Our next question comes from Kevin Fultz with JMP Securities.
Kevin Fultz: Congratulations on a great year. Clearly, the portfolio credit quality is in excellent shape. I’m just curious if you’ve seen an increase in amendment requests at all. And if you could discuss your expectations that potentially pick up in the near term.
Scott Bluestein: Sure. Thanks, Kevin. We have not — and we actually — we just looked at this — we look at it every quarter. But over the course of Q4, we really did not see any uptick in amendment requests broadly. And specifically, we did not see any amendment requests that were related to stress or liquidity-related situations. So I think overall, we’re continuing to see a stable and strong credit environment across our portfolio. We have 2 loans on nonaccrual. It makes up less than 0.1% of the portfolio from a fair value perspective. We’re certainly increasing our monitoring. We’re tightening our underwriting screens given the volatility that we have seen over the course of the last several quarters and that we expect to see on a go-forward basis. But overall, we have not seen any uptick with respect to amendment requests from our portfolio companies.
Kevin Fultz: Okay. That’s great to hear. And I guess just to continue on that line of question. You mentioned nonaccruals obviously in great shape, with only 2 investments on nonaccrual. I was just curious if you could provide some high-level color on the one new investment that was added this quarter. .
Scott Bluestein: Sure. It’s a small loan. It’s about a $5 million loan to a small tech company that is private. That company remains current with respect to its contractual payments to Hercules, but it does have stressed liquidity. They’re currently exploring a variety of options, and we’re working closely with the team. We did make the decision in Q4 out of an abundance of caution to put that loan on nonaccrual and we did take a fair value adjustment on that position as well. But it’s a very small position relative to, obviously, a $3 billion portfolio. .
Operator: Our next question comes from Christopher Nolan with Ladenburg Thalmann.
Christopher Nolan: Scott, unfunded commitments for $645 million, 20% of the portfolio, down slightly quarter-over-quarter. Are you — given the volatility of the broader environment, are you seeing companies having a tougher time meeting their milestones to tap those commitments? .
Scott Bluestein: We’re not. We’ve actually had a tremendous run of success with respect to companies of being able to unlock unfunded commitments. If you — it’s hard to sort of see the quarter-over-quarter movements because there’s sort of a combination of 2 things. Number one, in any given quarter, we’re funding a large portion of those available, unfunded commitments and then new unfunded commitments are being unlocked. So what you essentially saw in Q4 was we were able to fund a lot of capital to existing portfolio companies. But on top of that, we had several of our sort of larger, later-stage companies, both on the tech side and life sciences side achieve specific performance milestones during the quarter, which unlocked new tranches from an availability perspective.
Christopher Nolan: And my follow-up question is, in your prepared remarks, you mentioned, if I heard correctly, $3.6 billion in investment assets. The balance sheet has $3 billion at cost. Should we assume that, that incremental $600 million is assets in the RIA?
Scott Bluestein: Yes.
Christopher Nolan: And what — how do you — I know it’s , but do you see the RIAs being even a faster growth vehicle than the publicly traded BDC for 2023?
