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According to data from Pitchbook and Affinity’s annual predictions survey, more than a third of nearly 300 respondents identified due diligence criteria as a major factor impacting dealflow. With a 76% increase in the number of funds in operation from 2015 to 2023, the pressure to identify and close deals has never been higher.
Meade -- General Counsel and Chief Legal Officer Good morning, everyone. This approach is yielding profitable growth and operating leverage. As clients increasingly turn to BlackRock, we believe this will result in sustained market-leading organic growth, differentiated operating leverage and earnings and multiple expansion over time.
We enabled strong operating leverage driving 160% conversion of incremental revenue to adjusted EBITDA this quarter. We believe there's ample opportunity to continue our land-and-expand strategy with our largest customers as we continue to upsell and cross-sell legal and regulatory data sets.
Through this partnership, RingCX customers will be able to leverage Verint's leading WEM and CX automation solutions, which complement RingCentral's native AI capabilities. We are also leveraging our large GSP network to grow internationally. Leveraging our unique GSP network is also a opportunity and differentiator of RingCX growth.
The investment process involves a two-step approach to analysis whereby anything new coming into the portfolio (a manager or strategy, for example) is discussed first at the investment committee level, before further scrutiny by the investment, risk, legal and sustainable investing teams. Governance has been reviewed and refreshed.
Turning to the broad trends we saw this quarter, as I met with customers around the globe, I saw a strong desire to leverage AI to improve business processes and elevate customer experiences. As an example, a cloud-based document management company for legal professionals signed a multi-year deal with Elastic this quarter.
Licensing revenue grew 5%, primarily due to the timing of legal settlements. Performance revenue increased by 18% due to strong artist touring activity in Europe, while sync revenue increased 2%, driven by timing of legal settlements. So, it's really -- it's basically about the dealflow if you really put it in business terms.
Expenses increased 7% largely driven by the absence of a legal reserve release last year. We generated positive operating leverage this quarter as expenses decreased 4% driven by actions taken to rightsize the expense base. We've seen spreads narrow in the markets on high-yield corporate debt, leverage debt, etc.
It offers life science companies the ability to leverage Nanox.AI million in share-based compensation, increase in our legal expenses in the amount of $0.5 Inaudible] Altogether, in terms of the locations and the place, by far, our pipeline and dealflow is far bigger than what we have indicated, and we continue to work.
Technology ranked 4th in dealflow but had the highest average pursuit rate, 8.76%, of all sectors. See below for the full Q3 deal activity overview on the Axial platform, and for a more detailed breakdown by industry, check out The SMB M&A Pipeline: Q3 2023. .” Mr. Kerchner, Mr. Clark, Mr. Fay, Ms.
Now, turning to our balance sheet and cash flow, Alliance had another strong quarter of cash generation with $153.5 million of free cash flow before growth investments in the 2023 quarter, an increase of 88.7% Our total and net leverage ratios were 0.4 year over year and 9.7% versus the sequential quarter.
[Operator instructions] I would now like to pass the conference over to our host, Tryn Stimart, chief legal and compliance officer with AbCellera. Tryn Stimart -- Chief Legal and Compliance Officer Thank you. I'm Tryn Stimart, AbCellera's chief legal and compliance officer. Tryn, please go ahead.
RITHOLTZ: We call that legal insider trading. And you know, it’s funny, when I was on the road in the early days, you know, talk about even post GFC, you’d meet with large scale institutions and you talk about senior secured loans, private lending, covenants, reasonable leverage, et cetera, et cetera. RITHOLTZ: Right.
Meade -- General Counsel and Chief Legal Officer Thank you, operator. As markets improve, we expect execution on our financial rubric to drive profitable growth and operating leverage. Unique dealflow and track record of successful exits create a flywheel effect, enabling future fundraising and more scaled funds.
These technologies allow firms to process massive volumes of unstructured data—such as PDFs, legal documents, and financial reports—at unprecedented speed, scale but also precision. Traditional systems of record, such as CRM platforms, dealflow systems and portfolio management software, constitute the backbone of PE firms’ operations.
We will continue exploring opportunities to leverage our AI technology to promote accessible early diagnosis and preventive management. We have people who are actually working on building the dealflow that currently is pretty large. We know the cost of technology tend to decrease over time. The increase of $2.0
One, simplify the business; two, improve operational performance; and three, reduce leverage. From a leverage perspective, I'm pleased to report that debt to EBITDA at year-end 2024 was slightly below eight times, which is almost a full turn lower than one year ago. I'm pleased with the progress on several key initiatives to date.
The transcript from this week’s, MiB: Howard Lindzon, Social Leverage , is below. So with no further ado, my discussion with Social Leverage’s Howard Lindzon. HOWARD LINDZON, MANAGING PARTNER, SOCIAL LEVERAGE: Hello, Barry. The next step from there was that Social Leverage. This all is leverage from the network.
It’s also legal and regulatory. But also it helped private equity do deals, right? Leverage buyouts requires leverage. And when rates were so low, the leverage went, it was cheap and, and and easily accessible. You think it’s more than just the tech companies? There’s not that many participants.
And the Government segment was weaker than we had anticipated based on timing of dealflow. The prior year also benefited from a portion of a legal settlement of $17 million. Sequentially, our net leverage ratio went up slightly from the prior quarter to 1.6 For the full year, ACV was down 20% as compared to 2023.
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