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billion of net income, CPP Investments directly and indirectly incurred $1,617 million of operating expenses, $1,449 million in investment management fees and $2,067 million in performancefees paid to external managers, as well as $427 million of transaction-related expenses. To generate $46.4 bps and below the 28.6
And if you go back to 2016, we started with an amazing investment writing 601West at Aon. I know you had highlighted difficult comp on performancefees in the quarter. To think about intellectual property overall, this is just hugely significant. It's 20, 25 colleagues. Weston Bloomer -- UBS -- Analyst Great, thank you.
Management fees increased by $165 million, due to an increase in average assets managed by external fund managers. Performancefees decreased by $621 million driven by fewer realization events in the private equity portfolio given the low transaction activity through the year, partially offset by strong performance of hedge funds.
We were lucky enough to have Temasek backing us as early as 2016. And I think this is where the industry should be heading. You’ve got the most sophisticated sovereign wealth funds in the world. They’ve been a great partner ever since. Great marketplace.
Before that, 2016, the energy crisis, same. And all these formally high performers are now just so big, they’re very happy collecting the management fee and the performancefee matters less. And so what that’s done is a couple things. It was a few months in 20, 25 months.
billion was 7% higher year over year, driven by the impact of higher markets on average AUM and higher performancefees. Fourth quarter and full year performancefees of 311 million and 554 million, respectively, increased from a year ago, reflecting higher revenue from liquid alternatives and long-only mandates.
And then in 2016, we were thinking a little bit more strategically about our business in the Americas, and I championed this project to open up a headquarters for the firm in Colorado and — RITHOLTZ: Away from Wall Street. And I helped to drive a lot of that in the Americas early on. We win when our clients win.
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