ESR Group Limited Annual Report 2023 13 by increased earnings stemming from higher Fee-related AUM4,5 and robust operating fundamentals. Fee-related AUM4,5 grew by 6.3% y-o-y to reach approximately US$81 billion, while Total AUM5,6 increased by 7.3% to approximately US$156 billion. Underscoring the strength of our transformation, Fund Management EBITDA1 now comprises nearly 60% of ESR’s total segmental EBITDA, up from 21% at IPO in 2019. Despite the subdued fundraising environment for the past two consecutive years, ESR successfully collaborated with capital partners to achieve a capital raise of US$7.5 billion in FY2023. One of our milestone accomplishments was the establishment of ESR's largest-ever RMB Income Fund in China with a total investment capacity of RMB10 billion and a seed portfolio from ESR's balance sheet. Other key capital raising commitments and initiatives in FY2023 included a further upsize for the ESR Data Centre Fund (“ESR DC Fund 1”) to US$1.35 billion, which represents a pipeline of up to 575 MW; and LOGOS’s Green Data Centre Fund to invest in build-to-suit data centre Notes: 4. Fee-related AUM excludes AUM from Associates and levered uncalled capital. 5. Based on FX rates as 31 December 2023 6. Total AUM included the reported AUM of the Associates and assumed the value of the uncalled capital commitments in the private funds and investment vehicles on a levered basis. projects across APAC with an identified pipeline of 375MW. Our robust fundraising momentum has carried over into 2024, and in the first quarter of the year, we successfully raised approximately US$1 billion, including the establishment of our first perpetual, open-ended logistics core fund in South Korea, holding an initial portfolio of seven high quality Class A logistics warehouses valued at approximately US$2 billion. This achievement further bolstered our distinguished track record, highlighting a net internal rate of return ("IRR") exceeding 25% and a 3.5x equity multiple achieved for investors in the ESR-KS Development Fund 1. On the back of our growing fund AUM, Fund Management Fee Income has demonstrated impressive growth, with a three-year compounded annual growth rate ("CAGR") of 57% since 2020. Moreover, our business has become significantly more diversified across APAC, with notable contributions from North Asia (Japan and South Korea), India/SEA and Australia and New Zealand now representing the three largest regions, contributing 36%, 22% and 21% of Fee Income, respectively. ESR Jiangsu Friend Phase III, Kunshan, China STRATEGIC REPORTS CORPORATE GOVERNANCE FINANCIAL STATEMENTS
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