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The strong results this year have also yielded higher profit-sharing expense commensurate with performance. We feel good about our longer-term prospects here. So the management fee portion would be real-time, but the performancefee would be on a lag. As far as how are the funds performance this year holding up?
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. We talked to you about adding nearly $2 billion of base and performancefees in 2022. government money market funds.
And there is an additional $50 billion in prospective future development pipeline. As you think about the momentum in the business that you highlighted and the prospects for growth and growth in AUM, how are you thinking about margins as you think about the rest of the year? The first quarter was flat with last year.
Sean Klimczak, global head of Blackstone Infrastructure and Nadeem Meghji, global co-head of Blackstone Real Estate, said: “Prior to AirTrunk, Blackstone’s portfolio consisted of US$55bn (€49.8bn) of data centres including facilities under construction, along with over US$70bn in prospective pipeline development.”
While acquisitions contributed a portion of the year-over-year growth in adjusted EBITDA, we're also benefiting from a healthy mix of higher pull-through of specialty technology and services, as well as maturation of the performance we book. And as we go around and talk to customers and prospects, that's certainly what the market wants.
Very excited for the prospects of that business. I believe performancefees typically occur end of year. As the company we closed the transaction toward the end of November, if you think about it this way, December is a holiday month, getting through a little bit of transition stuff. Stephen Laws -- Analyst Thanks, Baron.
The second benefit is an expansion of our product offering for clients and prospects. Just going back to the performancefee margin ramp, you said 12% to 18% is possible there as those mature. Thomas Kelliher -- Analyst Hey, good afternoon. This is Thomas going on for Sean.
I know you had highlighted difficult comp on performancefees in the quarter. And then, also, on the prospects for growth in the back half of the year in reinsurance, we've seen some -- some news articles regarding kind of an above-average chunk of the facultative business being hired by a competitor.
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.
Although cash remains an attractive safe haven with the prospect of fewer rate cuts for 2024, the nearly 30% increase in equities over the last year continues to propel clients toward rerisking into stocks and bonds. Clients choose BlackRock for performance. This was mainly due to the relative outperformance of lower fee U.S.
I know I speak for the entire BlackRock board of directors, BlackRock's leadership team, and all of our employees when I say we could not be more excited about the prospects of the BlackRock family with our colleagues from GIP. And we'd expect improvement in the fee-related earnings growth over the next two years. increased by 7%.
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 that comes from having our capital invested alongside theirs, and having very strict requirements for performance before we get paid performancefees. LAYTON: Yeah.
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%.
and our prospects are very strong. We continue to be optimistic about our prospects in the vast and underpenetrated private wealth channel, given our performance, the investment we've made in distribution, and our highly differentiated brand. Blackstone is an extraordinary place. And with that, I'll throw the ball over to Jon?
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. Michael, as the third quarter went through, I believe we typically get some annual performancefees that hit in Q4.
Our positioning has never been stronger nor our prospects brighter. economy, historically tight financing spreads, greater debt availability, the prospects of a more business-friendly regulatory climate and importantly, accelerating technological innovations have given us confidence to deploy capital at scale. I will catch it.
Our portfolio today consists of $55 billion of data centers, including facilities under construction, along with over $70 billion in prospective pipeline development. Blackstone is positioning itself to be the largest financial investor in AI infrastructure in the world as a result of our platform, capital and expertise.
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