This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Successful execution of these goals should also result in multiple expansion for our shareholders. We expect these private market assets to positively impact BlackRock's overall effective fee rate by 0.5 This approach is yielding profitable growth and operating leverage. We ended the quarter with AUM near $11.5 trillion, 11.5
On an equivalent day count basis, our annualized effective fee rate was 0.2 Performancefees of 118 million increased from a year ago, primarily reflecting higher revenue from illiquid alternatives. basis points lower compared to the first quarter, mainly due to divergent equity beta and changing client risk preferences.
We completed the previously announced acquisition of the Management Contract of Great Ajax, which was a residential mortgage REIT, which is now we're going to transition that into an opportunistic commercial mortgage REIT, which will help generate fee-related earnings for shareholders as we reposition the company and grow it.
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.
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.
AirTrunk founder and chief executive Robin Khuda will retain a stake, the statement said, without specifying the size of his remaining shareholding. The deal triggers a large performancefee for ASX-listed Macquarie Group, which manages the fund. The fee is expected to be worth hundreds of millions of dollars.
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.
The exposure you get in investment banking, I was a leveraged finance banker by background. And all our historical backers, shareholders, they actually kept on supporting the business. CHABRAN: Maybe because I come from a leverage finance background, as I told you, I tend always to focus on the downside.
It can be even a change in regulation or in market, where suddenly volatility picks up and the interest of bondholders and shareholders are at odds. And these were real bankruptcies, led by a supply-demand imbalance, too much leverage and not enough demand for the products. It can be a bankruptcy, but it also can be an M&A event.
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.
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. Net leverage on 12/31 was 3.6 We have a solution to an important and growing problem facing Americans.
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 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. And we're leveraging photonics innovation for up to two times greater fiber efficiency.
Through strong organic growth and scaling of our private markets and technology platforms, we believe we can drive compelling earnings growth and multiple expansion for our shareholders. Through our iShares and indexing platforms, we've developed long-standing relationships, highly aligned shareholder relationship with global corporates.
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%.
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. I am highly enthusiastic about what we will accomplish for our shareholders in 2024. Today's conference is being recorded. Please go ahead.
The commercial real estate business today is in one of those periods where we feel current capital deployment will be hugely rewarded down the road and being patient searching for the right investments will reward our shareholders. One last note on Ajax. Now, I'll refer to the deck, which has been posted online. market share.
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. So just wondering what your outlook for the FRE margin might be in '25, even just not even considering fee-related performance revenue.
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. And we think operating leverage over the long term. And then longer term, that sort of picture of stability and over time of operating leverage.
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content