Management fees were $116 million in the third quarter of 2012, down from $131 million for the third quarter of 2011, primarily due to lower management fees from the Liquid Hedge Funds and Credit Hedge Funds, partially offset by higher management fees from the Credit Private Equity Funds and Logan Circle. Notably, 86% of the alternative assets under management at quarter end were in funds with long-term, locked-up structures, which provides for a stable, predictable base of management fees.Incentive income recorded in the third quarter of 2012 totaled $65 million, compared to $14 million recorded in the third quarter of 2011. This year-over-year increase was driven by higher incentive income generated by the Liquid Hedge Funds, Credit Hedge Funds and Private Equity Funds, partially offset by lower incentive income recognized from the Credit Private Equity Funds. Additionally, Fortress had $651 million in undistributed, unrealized incentive income embedded across the funds based on investment valuations at September 30, 2012. Of that $651 million, $543 million has not been recognized in DE during the first nine months of 2012. The Company’s segment revenues and distributable earnings will fluctuate materially depending upon the performance of its funds and the realization events within its private equity businesses, as well as other factors. Accordingly, the revenues and profits in any particular period should not be expected to be indicative of future results. ASSETS UNDER MANAGEMENT As of September 30, 2012, assets under management (“AUM”) totaled $51.5 billion, up 8% from $47.8 billion as of June 30, 2012 and up 18% from $43.6 billion as of September 30, 2011. During the third quarter of 2012, Fortress recorded $2.0 billion of net client inflows for Logan Circle, had a $1.8 billion increase in its fund valuations, invested $0.8 billion of capital and raised $0.6 billion of capital and equity that was directly added to AUM. These increases to AUM were partially offset by (i) $0.7 billion of capital distributions to investors, (ii) $0.4 billion of Hedge Fund redemptions and (iii) $0.4 billion of RCA payments to Credit Hedge Fund investors. As of September 30, 2012 Fortress had $7.2 billion of dry powder, primarily in Credit Private Equity funds.