It’s a very disruptive market as I’m sure you’re aware. And so, as a result of that, I think we’ll be — because of our deep relationships across the real estate market as a result of both our franchise building out of trip as well as Angelo Gordon’s franchise in a number of different markets. I think we have deep credibility across the landscape as a financing provider that understands the market and understands the space. So to us, it really looks like a very interesting and scalable opportunity over time. Real estate financing, overall, right now is a pretty broken market. And so, I think as a result of that, we expect it by virtue of have an approval of liquidity to be able to do this. And given our expertise, we expect to be able to be a value-add solutions provider and understand the risks of what the market is currently looking like.
There’s also just a lot of dislocation and what you were thinking as public markets and publicly traded securities in the real estate world. So our expectation is that, we will be able to flex between public markets and private markets as a result of having a pool of capital. The team — by the way the team at Angelo Gordon on the structured credit side, there’s also seeing those types of opportunities as well. So more to come on this, but I think we’ll scale the business in a way that’s consistent with what we see the opportunity to be and both in terms of resources and footprint but we think it’s a great opportunity.
Operator: The next question comes from Michael Brown with KBW. Please go ahead.
Michael Brown: Great. So as you know Jon, the addition of Angelo Gordon certainly gives you much broader diversification and capabilities to better service the insurance industry and we’ll truly hear more about this next week. But I just wanted to maybe hear a little bit about, how you’re approaching that channel, thinking about that playbook and maybe how long it would take you to meaningfully tap into the opportunity there? And what’s the incremental investment that may be needed just to get you to where you want to be over time?
Jon Winkelried: Yes. I mean, it’s a good question. I think you heard in my prepared remarks that the type of dialogue that we’re experiencing right now has meaningfully shifted. And that is — it’s very tangible. Just to put it in perspective, prior to the Angela Gordon transaction, we had dialogue with a number of insurance companies that were LPs of ours, but really fundamentally only being able to serve them from a private equity and real estate perspective. We also had a number of insurance companies, particularly life and annuity players that have approached us about a more holistic relationship but — and I wanted to understand what our plans were for credit as an asset class overall. And so we had a series of conversations that were hard to execute on.
Post the Angelo Gordon transaction, we’ve had a very substantial I would say inflection in the type and quality of dialogue that we’re having with a number of players in the industry. And those dialogue — that dialogue has ranged from I guess what I would describe, I mean I put them in two categories. One would be general LP-type relationships and credit strategies participation in SMAs or permanent funds. The other would be a more strategic type of relationship similar to what you’ve seen other alternative asset managers execute in the market. And so, we currently have several dialogues going on that I would put in that category. Exactly how long it will take to advance the ball that. Hard to say, but I would say that it’s a very high level of focus for us as a combined firm now.
We have a team that we put together between TPG and AG that is sort of dedicated to focus on this. I think over time, naturally, we’ll continue to attract some talent in the industry with respect to knowledge and understanding about effective asset management for life and annuity players, what you would think of as sort of insurance solutions type of expertise. So I think that we’ll be adding some capability in that respect over time. So — it’s a very exciting opportunity for us. It’s exciting area for us, now that we’re together as one firm, because this is an area where I think we can play a very, very competitive role. And if you look by the way at Angelo Gordon’s business across the credit spectrum, one of the things that was really attractive to us about AG was that it’s a multi-strategy credit capability, a multi-strategy credit platform.
So, a combination of credit solutions on the corporate side structured credit the asset-backed asset-related side and then Twin Brook, which is direct lending platform really incorporates a broad capability that is really required to fully service the insurance industry and the insurance needs. So we’re very focused on it. We think we’re well positioned now. And obviously we’ll keep everybody informed as we continue to go down that road.
Operator: The next question comes from Brian Bedell with Deutsche Bank. Please go ahead.
Brian Bedell: Great. Thanks. Good morning, folks. Good — almost afternoon.
Jon Winkelried: Good afternoon.
Brian Bedell: Most of my questions have been asked and answered. But do you have one on the LP conference and then related of course to Rise climate and climate infrastructure. Just I guess in terms of the — what you’re hearing from the LPs in terms of demand for those two asset classes individually. So obviously, the demand is very good for energy transition. But how are they thinking about that for infrastructure? And then I guess what I’m getting at is what are they substituting if they’ve got limited capacity to invest what are they substituting either infrastructure or energy transition for?
Jon Winkelried: Look, I think, first of all, I think that the climate PE strategy and also transitional infrastructure is I would say a kind of a frontier in our markets that is very, very unique. First of all, I think, we — having dedicated the resources that we’ve dedicated to the sector and the space now for the better part of the last five years and building this capability, I think, that we’re in a small category with respect to the number of firms that are very credible in this space. And for us it’s been a very deliberate strategic build because we do believe that over the course of the next as I mentioned in my remarks over the course of the next decade plus the amount of capital required to solve some of these climate-related issues is just absolutely enormous.
And the number of credible solutions providers and partners that are in the market right now is actually quite limited. And we view ourselves in a very distinctive category as it relates to what we’ve built and our capability. I think what we’re seeing from LPs is that are looking at this they’re looking at this in a range of different ways but I think what we’re seeing from LPs is they view this as a hard to navigate part of the market. And as a result of that because of our leadership in it the robustness of our dialogue with LPs in this area is really — is frankly pretty extraordinary. And what we’re finding from LPs is that they’re looking at this depending — be looking at this in a number of different ways. Some look at this as sort of a piece of their private equity strategy.
