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Finally, the firm intends to increase the percentage of earnings its shareholders receive from base management fees, which it says will create a predictable earnings stream for public shareholders to value, accompanied by the transfer of performancefees to its dealmakers.
iShares' fixed-income ETF assets now stand at over $1 trillion, nearly 40% higher than at year-end 2021. BlackRock manages more than $300 billion of assets across model portfolios and separately managed accounts for wealth managers. Successful execution of these goals should also result in multiple expansion for our shareholders.
trillion in assets, 9.4 We deliver durable long-term investment performance by executing on alpha opportunities, sourcing unique deals, and managing risk. The foundation of a market-leading asset management platform is comprehensive, high-quality investment products with strong long-term investment performance.
Operator instructions] At this time, I'd like to turn the conference over to Weston Tucker, head of shareholder relations. Weston Tucker -- Head of Shareholder Relations Thanks, Katie, and good morning, and welcome to Blackstone's first-quarter conference call. Today's conference is being recorded. Please go ahead.
While we continue to focus on the direct lending business lines which have gotten us to this point, the growth of our alternative asset business is very important to the revaluation of our company. During the quarter; Newrez, our mortgage company; Genesis, our RTL lender, and our portfolio of assets generated very strong returns.
The alliance includes a $500 million Asset Joint Venture and a $250 million corporate secured financing facility provided by CPP Investments to Redwood. Redwood and its subsidiaries will manage the assets for the Joint Venture. Redwood stands to earn administrative and potential performancefees.
Max Biagosch, senior MD, global head of real assets and head of Europe for CPP Investments, said: “This investment represents another milestone in our broader data centre strategy, further enhancing our footprint in the region to the benefit of CPP contributors and beneficiaries.” Khuda will remain chief executive, according to the statement.
Since joining the company seven weeks ago, I've been evaluating, together with the team, all aspects of our business, our strategic direction and priorities, our product offerings in terms of current performance and market potential, the outlook for our business units, and where we can drive improved performance and long-term shareholder value.
Tonight, I'll go through the headline results for the quarter and update you on our three pillars of shareholder value creation before handing it to John to speak more about financials and outlook. Turning now to our three pillars of shareholder value creation. Blackley -- Co-Founder, Chief Executive Officer, and Director Good evening.
Now, I'd like to turn the call over to Christa for her thoughts on our financial results and long-term outlook for continued shareholder value creation. In summary, our strong financial results in the quarter and year to date reflects strong operational performance driven by our Aon United strategy and our Aon Business Services platform.
And they also have a unique approach to feeds when they’re generating alpha, when they’re outperforming their benchmark, they take a performancefee. And when they’re not generating alpha, when they’re underperforming, they actually return fees. 00:24:31 [Speaker Changed] We refund the fee.
Mathieu Chabran is the co-founder of TIKEHAU Capital, a Paris-based alternative asset manager. They run over $40 billion worth of assets. I don’t know how relevant that is to asset management, but let’s talk a little bit about you were doing before you were being lauded by the French president. Well guess what?
She is an author and former hedge fund trader, specializing in distressed assets. MIELLE: Well, I mean, it was a fairly new asset class. I think, you know, it’s not until probably Farallon came into existence, that it became a real asset class in itself, that stressed and distressed was a category that was thought as investable.
With supportive markets and more optimistic sentiment from clients, we're confident in our ability to both grow assets on behalf of clients and drive profitable growth for our shareholders. Total annualized organic base fee growth of 1% reflected seasonally softer flows earlier in the quarter before coming back to target in March.
Today, we are announcing two transformational changes in anticipation of the evolution we see ahead for the asset management industry and for the entire global capital markets. We've spoken throughout the year about what conditions we'd expect to bring investors out of cash and into risk assets. Operating income of 6.6 increased by 7%.
Tonight, I will comment on our progress within our three pillars of stakeholder value creation of, one, growing the business organically, two, expanding our profitability and three, allocating capital to increase shareholder value. The platform is on track and is live in our first new test markets. Cash used in operations was $26.2
And each of these priorities has detailed plans to deliver more customer, shareholder, and employee value in '25 and beyond. I want to share more on our thinking about how we leverage our network for maximum shareholder returns. The second aspect of our plan to drive improved shareholder return is all about utilization of our assets.
Clients entrusted us with over 80 billion of net new assets. We generated 3% annualized organic base fee growth, our highest second quarter in three years. trillion in assets under management, 10.6 We're growing faster than last year. It was 150 billion of flows, excluding episodic client activity. trillion. At more than 10.6
Before I turn it over to Larry, I'll review our financial performance and business results. With over 600 billion in net new assets entrusted to BlackRock, 2024 was a milestone year of programmatic, organic, and inorganic actions rooted in client needs, investment capability expansion, technology, and scale. billion in revenues.
Excluding the prior year's net investment securities losses, it was up 21%, largely on higher asset management fees and investment banking fees. And in AWM, we had record long-term net inflows of 234 billion, positive across all channels, regions, and asset classes. AUM of 4 trillion and client assets of 5.9
Operator instructions] At this time, I'd like to turn the conference over to Weston Tucker, head of shareholder relations. Weston Tucker -- Head of Shareholder Relations Great. We were the first alternative manager to surpass $1 trillion of assets under management. Today's conference is being recorded. Please go ahead.
We have a best-in-class lending business, a large balance sheet and an asset management business with huge upside. These assets have been great. On the asset management side, Sculptor, which was acquired less than a year ago, last November. We raised $300 million. I get asked, what are you going to do with the money?
Phalippou’s findings come as performancefees face renewed calls to address what prominent politicians deem a “loophole.” The tax savings amount to hundreds of billions of dollars at current rates, with fees taxed at long-term capital gains rates—substantially lower than income tax rates.
Operator instructions] At this time, I'd like to turn the conference over to Weston Tucker, head of shareholder relations. Weston Tucker -- Head of Shareholder Relations Great. trillion of AUM today, the largest alternative asset manager in the world and why I believe we will continue to achieve strong growth in the future.
Operator instructions] At this time, I'd like to turn the conference over to Weston Tucker, head of shareholder relations. Weston Tucker -- Head of Shareholder Relations Great. This should be very positive for Blackstone's asset values and provide the foundation for a significant realization cycle over time. Please go ahead.
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