If you look at what we’ve done in BREIT, again, meaningful premiums over cash.I would point out that BCRED in particular is a floating rate lender. And as a floating rate lender, it’s benefiting. Its returns this year have been extremely strong because defaults remain low and base rates have moved up quite a bit. We’re now also seeing spreads gap out on new originations, which helps.So BCRED perfectly positioned benefiting as rates move up. BREIT still has a favourable yield because if you remember, we pay out north of a 4% dividend for US investors because of the tax shield here. It’s an effective current yield close to 7%. So we think these products are still very well positioned. That is increased competition for us today. But over time we think it’s total return that really matters.Operator Thank you.
We’ll take our next question from Gerry O’Hara with Jefferies.Gerald O’Hara Great. Thanks. Perhaps one for Michael. You mentioned sort of FRPR to likely accelerate in the back half of the year. So kind of hoping you might be able to maybe give us a little bit of color. What gives you confidence or visibility there? And then I guess thinking about it just on a related basis, ex the FRPR, any sense of how we could think about incremental FRE margin expansion throughout the kind of next 12 to 18 months would also be helpful? Thank you.Michael Chae All right. Gerry on FRPRs we talked about this before in my remarks, but we definitely see an acceleration. And I specifically point to two things. BPC FRPRs in the second half of the year. We have a schedule.
It’s known what will be eligible for incentive fee events.I think we mentioned last quarter four times more AUM will be crystallizing this year than last year. There was very little in the first quarter. There’ll be a modest amount in the second quarter — in the second quarter. So it’s a really second half event, the ultimate dollars. And that will obviously be a function of the embedded gains at that time, but we have decent visibility on that.I’d also note on BCRED, which is sort of a little bit below the radar as it relates to FRPRs. That is obviously a steadily expanding base of both management fees and FRPRs. And those FRPRs are based on investment income borrowers paying interest. It’s a very stable and crystallizes core.So it’s a very stable source of incentive fees.
And I’d note that FRPRs for BCRED break it out, but those doubled year-over-year in the first quarter actually. So there’s important underlying momentum, I think, from multiple areas, not just the ones we get a lot of attention. On margins, as I said in my remarks, I would just say the big picture is we — I think stepping back, we — I think it’s fair to say we’ve demonstrated the ability to generate significant operating leverage over time.So and that comes from strong underlying management fee growth for long periods of time and disciplined approach to cost management and our biggest area of cost compensation. We fundamentally have a performance aligned structure over which we have considerable control. So in terms of the outlook, as always, I would focus on full year delivery, not intra year, quarter-to-quarter.
I’d refer you back to my comments from last quarter regarding confidence about market stability. And so for the full year 2023 relative to 2022, I think we continue to do.Operator We’ll take our next question from Ben Budish with Barclays.Ben Budish Hi there. Thanks for taking the question. I wanted to ask about refinancing risk across the portfolio, thinking about real estate in particular. But kind of wondering, are there any areas where you have portfolio companies or real estate assets paying fixed rates under debt where there could be a potential step up over the next few years? How are you guys thinking about that risk there?Jon Gray Well, what I would say on that is the good news is we have very little in the way of near-term maturities, which is the most significant thing.
We generally are operating funds these days at far lower leverage than we had in the past and we have ample reserves in these funds. And because we’re positioned in the strong sectors, cash flow growth has been very significant, which really helps when you get to refinancing.So had we positioned heavier obviously in US office buildings, excuse me, had we done a lot in retail. I think we would be more vulnerable. It doesn’t mean there aren’t specific situations. And at times we have walked from assets when we don’t see equity value. But when you look at our portfolios as a whole, we’ve used a very disciplined approach to leverage and even at higher interest expense, we feel good about our ability to refinance and extend our debt.Michael Chae And Ben just to add some stats around that, I mean, I would just reinforce what Jon said.
I think we’re — our teams are the best in the business actually at sort of managing capital structures, laddering maturities and making that constant process, locking in, floating rates, fixing floating rates at attractive moments.And so just in terms of some metrics, across our real estate and private equity portfolios, these are portfolio companies. With the average maturity remaining life in the maturities are about four and a half years. So we’re talking about the end of 2027. So really good runway there.As Jon said, minimal maturities across the portfolio this year. And in a business like private equity, even though there’s typically, on the face of it, essentially a fixed high yield component, but also a floating rate senior debt component.
As I mentioned, our teams worked and have worked in the past to fix those floating rates at attractive times.So approximately probably two-thirds of our private equity debt is essentially fixed rate at attractive levels. So we’re very, I think, conscientious and focused about managing our capital structures.Ben Budish Great. Thanks so much.Operator We’ll go next to Patrick Davitt with Autonomous Research.Patrick Davitt Hey, good morning, everyone. PE fundraising remains pretty anemic. And you mentioned it remains tough, but there was a poll out from BlackRock this week which I think had the fairly surprising conclusion that the respondents by far most wanted to increase allocations to private equity this year. That appears to be an outlier versus other polls we’ve seen.
So through the lens of that, do you sense in your more broad discussions with LPs that they’re starting to step in more to PE allocations and thus we could see a bigger uptick sometime later this year or is that poll surprising to you as well?Jon Gray Yeah, it’s interesting. Our clients love private equity. That’s the bottom line. And why do they love private equity? It’s because it’s been the best performing part of their portfolio for a long period of time and virtually every one of our clients. So when you have something that does well, you generally want more of it. Their challenge, of course, is that it’s grown to be above their target.So they could have 10% or 12 or 15% target. They’re above that. And so they’re constrained. And therefore in some cases they’re doing some secondaries.
In some cases they’re raising the allocations. We talked last quarter about New York State raising allocations to private equity, but it’s making them more cautious in the sense they only have so much budget to allocate. But it’s not because of a lack of desire. And I would make the broader point which is so important to our firm overall.Our clients like alternatives, our institutional clients, insurance clients, individual investors. And so the mega trend is intact. We’re in a more challenging moment, but clients desire for alternatives is very strong. But there are some structural challenges just in the near term because they may be over allocated right now. Those things tend to go away over time and their desire will be — will become reality.
And so that’s what gives us a lot of confidence. But yes, near term, a more challenging private equity fundraising environment.Steve Schwarzman But in the same survey, credit was up 52%. What it said is that 52% of institutional investors want to increase their allocation to credit. And we’re feeling that. And that’s a theme that both Jon and Michael really amplified on. And the BlackRock survey indicates it’s quite logical that’s a place to go. And that’s not something historically that has been a first choice kind of decision at a time of low interest rates, obviously, that’s all changed.Operator We’ll take our next question from Michael Brown with KBW.Michael Brown Hi, Gray. I just wanted to ask on the real estate segment, how should we think about the interplay of the growth in the equity and debt funds here and how that could play out for the fee rate for the segment overall?
