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How much is the prospective market size, as well as how robust local economy is? It’s all about what are this company’s prospects? And this isn’t dissimilar from what’s happened in prior eras within the financialservices sector. How much is it the value of the company you’re investing in?
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.
billion was 23% higher year over year, driven by the impact of higher markets on average AUM and higher performancefees. This is evidenced by this quarter's fee rate increase primarily reflecting the onboarding of higher fee rate private market assets following the GIP closing. Operating income of 8.1 increased 15%.
We're going to continue to look at other areas in financialservices where we could expand our direct lending. Performance is the No. 1 thing that matters and obviously, in the asset management business, we lead with performance. So again, really, really excited with the prospects of Sculptor and the overall team.
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