Peter Lacaillade

And often it's in like multifamily real estate or something really that has an income component and it doesn't have the upside of the buyouts and the venture stuff we do.

But then the other really key component to our success, and we've seen other competitors, firms that look like us start to copy the model or just adopt the model that we went with from the beginning.

is that we use pooled vehicles that we set up every two years.

We get the money from our clients, and then we allocate across a series of different funds and co-investments.

And they're committing to those funds.

We call them pooled vehicles.

They are structured much like fund to funds, although our underlying clients, our wealth management clients at SES, just pay a single asset management fee.

So we make the same

fee for them off putting them into parametric that's doing tax-efficient indexing.

We're not biased to put them in privates first.

We're just trying to do what's the best from an asset allocation perspective.

And our approach has been, where's the alpha?

It's in private, specifically private equity.

That's where we want to use our liquidity budget.

And then in the more efficient areas of the market, like public equities, we are largely doing a lot of passive.

And because our underlying clients are largely U.S.

taxpayers.

Yes, the pooled vehicle enables us, and we've actually found that you don't want to do it every year.

You want to do it every two years, but you don't want to do it every three to four years.

Two years, you get the right mix of underlying buyout growth venture funds and co-investments because...