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Nonoperating results for the quarter included $108 million of net investment gains, driven primarily by gains linked to a minority investment and unhedged seed capitalinvestments. We expect these private market assets to positively impact BlackRock's overall effective fee rate by 0.5 Earnings per share of $11.46
So when we started this strategy in 1718, and started allocating capital, investing in entrepreneurs who had a solution, that had to be massified. And I think this is where the industry should be heading.
Total annualized organic base fee growth of 1% reflected seasonally softer flows earlier in the quarter before coming back to target in March. billion increased 11% year over year, driven by the impact of market appreciation over the last 12 months on average AUM and higher performancefees and technology services revenue.
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 in fiscal 2023.
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 had a group that was doing small growth capitalinvestments in Germany and Switzerland at that time, a fund doing secondaries. And that comes from having our capitalinvested alongside theirs, and having very strict requirements for performance before we get paid performancefees.
We're closely monitoring customer demand signals, and we'll continue to make important capitalinvestments in key major metros to capture this traffic growth. Is that revenue largely recurring, or were there one-time delivery or performancefees lumped in there? I'm just trying to get a sense as to the right baseline.
billion was 8% higher year over year, driven by positive organic base fee growth and the impact of market movements on average AUM over the last 12 months. Higher performancefees and technology services revenue also contributed to revenue growth. Our annualized effective fee rate was flat compared to the first quarter.
But just given some of the recent developments, for example, like with DeepSeek over the weekend that suggests that AI models maybe could be a bit less capital and energy intensive. How much more capitalinvestment do you guys see needed across the industry? Jonathan D.
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