THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Many of the funds described above are “covered funds” as defined in the Volcker Rule of the U. S.  Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The Board of Governors of the Federal Reserve System (FRB) extended the conformance period to July 2022 for the firm’s investments in, and relationships with, certain legacy “illiquid funds” (as defined in the Volcker Rule) that were in place prior to December 2013.
This extension is applicable to substantially all of the firm’s remaining investments in, and relationships with, such covered funds.
The table below presents the fair value of investments in funds at NAV and the related unfunded commitments.
## Table 0 ##
Note 7.
Derivatives and Hedging Activities Derivative Activities Derivatives are instruments that derive their value from underlying asset prices, indices, reference rates and other inputs, or a combination of these factors.
Derivatives may be traded on an exchange (exchange-traded) or they may be privately negotiated contracts, which are usually referred to as OTC derivatives.
Certain of the firm’s OTC derivatives are cleared and settled through central clearing counterparties (OTC-cleared), while others are bilateral contracts between two counterparties (bilateral OTC).
Market Making.
As a market maker, the firm enters into derivative transactions to provide liquidity to clients and to facilitate the transfer and hedging of their risks.
In this role, the firm typically acts as principal and is required to commit capital to provide execution, and maintains inventory in response to, or in anticipation of, client demand.
Risk Management.
The firm also enters into derivatives to actively manage risk exposures that arise from its marketmaking and investing and lending activities in derivative and cash instruments.
The firm’s holdings and exposures are hedged, in many cases, on either a portfolio or riskspecific basis, as opposed to an instrument-by-instrument basis.
The offsetting impact of this economic hedging is reflected in the same business segment as the related revenues.
In addition, the firm may enter into derivatives designated as hedges under U. S.  GAAP.
These derivatives are used to manage interest rate exposure in certain fixedrate unsecured long-term and short-term borrowings, and deposits, and to manage foreign currency exposure on the net investment in certain non-U.
S.  operations.
The firm enters into various types of derivatives, including: ‰ Futures and Forwards.
Contracts that commit counterparties to purchase or sell financial instruments, commodities or currencies in the future.
‰ Swaps.
Contracts that require counterparties to exchange cash flows such as currency or interest payment streams.
The amounts exchanged are based on the specific terms of the contract with reference to specified rates, financial instruments, commodities, currencies or indices.
‰ Options.
Contracts in which the option purchaser has the right, but not the obligation, to purchase from or sell to the option writer financial instruments, commodities or currencies within a defined time period for a specified price.
Derivatives are reported on a net-by-counterparty basis (i. e. , the net payable or receivable for derivative assets and liabilities for a given counterparty) when a legal right of setoff exists under an enforceable netting agreement (counterparty netting).
Derivatives are accounted for at fair value, net of cash collateral received or posted under enforceable credit support agreements (cash collateral netting).
Derivative assets are included in financial instruments owned and derivative liabilities are included in financial instruments sold, but not yet purchased.
Realized and unrealized gains and losses on derivatives not designated as hedges are included in market making and other principal transactions in Note 4.
THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements Level 3 Rollforward Commentary Year Ended December 2018.
The net realized and unrealized gains on level 3 derivatives of $1.14 billion (reflecting $113 million of net realized losses and $1.25 billion of net unrealized gains) for 2018 included gains of $1.11 billion reported in market making and $28 million reported in other principal transactions.
The net unrealized gains on level 3 derivatives for 2018 were primarily attributable to gains on certain equity derivatives, reflecting the impact of a decrease in certain equity prices and gains on certain currency derivatives, primarily reflecting the impact of changes in foreign exchange rates.
Both transfers into level 3 derivatives and transfers out of level 3 derivatives during 2018 were not material.
Year Ended December 2017.
The net realized and unrealized losses on level 3 derivatives of $555 million (reflecting $119 million of net realized losses and $436 million of net unrealized losses) for 2017 included losses of $90 million reported in market making and $465 million reported in other principal transactions.
The net unrealized losses on level 3 derivatives for 2017 were primarily attributable to losses on certain equity derivatives, reflecting the impact of changes in equity prices, losses on certain currency derivatives, primarily reflecting the impact of changes in foreign exchanges rates, and losses on certain credit derivatives, reflecting the impact of tighter credit spreads, partially offset by gains on certain commodity derivatives, reflecting the impact of an increase in commodity prices.
Transfers into level 3 derivatives during 2017 were not material.
Transfers out of level 3 derivatives during 2017 primarily reflected transfers of certain credit derivatives assets to level 2, principally due to certain unobservable inputs no longer being significant to the valuation of these derivatives.
OTC Derivatives The table below presents the fair values of OTC derivative assets and liabilities by tenor and major product type.
## Table 1 ##
In the table above: ‰ Tenor is based on remaining contractual maturity.
‰ Counterparty netting within the same product type and tenor category is included within such product type and tenor category.
‰ Counterparty netting across product types within the same tenor category is included in counterparty netting in tenors.
Where the counterparty netting is across tenor categories, the netting is included in cross-tenor counterparty netting.
THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Notes to Consolidated Financial Statements ‰ Miscellaneous receivables and other included assets classified as held for sale of $1.01 billion as of December 2018 related to the firm’s new European headquarters in London.
During the third quarter of 2018, the firm entered into a sale and leaseback agreement, which closed in January 2019, to sell this property for $1.53 billion.
The assets were classified as held for sale during the fourth quarter of 2018 when the construction of the property was substantially completed.
Substantially all of the sale proceeds in excess of the carrying value of the property will be recognized over the life of the lease as a reduction to occupancy expense.
In accordance with ASU No.2016-02, the firm recorded a right-of-use asset upon the closing of the sale and lease back agreement in January 2019.
See Note 3 for information about ASU No.2016-02.
‰ Miscellaneous receivables and other included other assets classified as held for sale of $365 million as of December 2018 and $634 million as of December 2017 related to the firm’s consolidated investments within its Investing & Lending segment, substantially all of which consisted of property and equipment.
‰ Miscellaneous receivables and other included equitymethod investments of $357 million as of December 2018 and $275 million as of December 2017.
Goodwill and Identifiable Intangible Assets Goodwill.
The table below presents the carrying value of goodwill.
## Table 2 ##
Goodwill is the cost of acquired companies in excess of the fair value of net assets, including identifiable intangible assets, at the acquisition date.
Goodwill is assessed for impairment annually in the fourth quarter or more frequently if events occur or circumstances change that indicate an impairment may exist.
When assessing goodwill for impairment, first, qualitative factors are assessed to determine whether it is more likely than not that the estimated fair value of a reporting unit is less than its estimated carrying value.
If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed.
The quantitative goodwill test compares the estimated fair value of each reporting unit with its estimated net book value (including goodwill and identifiable intangible assets).
If the reporting unit’s estimated fair value exceeds its estimated net book value, goodwill is not impaired.
An impairment is recognized if the estimated fair value of a reporting unit is less than its estimated net book value.
To estimate the fair value of each reporting unit, a relative value technique is used because the firm believes market participants would use this technique to value the firm’s reporting units.
The relative value technique applies observable price-to-earnings multiples or price-to-book multiples and projected return on equity of comparable competitors to reporting units’ net earnings or net book value.
The estimated net book value of each reporting unit reflects an allocation of total shareholders’ equity and represents the estimated amount of total shareholders’ equity required to support the activities of the reporting unit under currently applicable regulatory capital requirements.
In the fourth quarter of 2018, the firm assessed goodwill for impairment for each of its reporting units by performing a qualitative assessment.
Multiple factors were assessed with respect to each of the firm’s reporting units to determine whether it was more likely than not that the estimated fair value of any of these reporting units was less than its estimated carrying value.
The qualitative assessment also considered changes since the prior quantitative tests.
The firm considered the following factors in the qualitative assessment performed in the fourth quarter when evaluating whether it was more likely than not that the fair value of a reporting unit was less than its carrying value: ‰ Performance Indicators.
During 2018, the firm’s net revenues, diluted earnings per common share, return on average common shareholders’ equity (ROE) and book value per common share all increased compared with 2017.
The firm’s operating expenses increased, reflecting investments in growth and higher client activity.
Despite the increase in expenses, the efficiency ratio (total operating expenses divided by total net revenues) and pre-tax margin for 2018 remained stable compared with 2017 and there were no significant negative changes to the firm’s overall cost structure since the prior quantitative goodwill tests were performed.
‰ Firm and Industry Events.
There were no events, entityspecific or otherwise, that would have had a significant negative impact on the valuation of the firm’s reporting units.
‰ Macroeconomic Indicators.
Since the prior quantitative goodwill tests, the firm’s general operating environment improved amid stronger global economic growth.
THE GOLDMAN SACHS GROUP, INC.  AND SUBSIDIARIES Management’s Discussion and Analysis In the table above, total AUS net inflows/(outflows) for 2017 included $23 billion of inflows ($20 billion in longterm AUS and $3 billion in liquidity products) in connection with the acquisition of a portion of Verus Investors’ outsourced chief investment officer business (Verus acquisition) and $5 billion of equity asset outflows in connection with the divestiture of our local Australianfocused investment capabilities and fund platform (Australian divestiture).
The table below presents average monthly assets under supervision by asset class.
## Table 3 ##
Operating Environment.
During 2018, our assets under supervision increased reflecting net inflows in liquidity products, fixed income assets and equity assets.
This increase was partially offset by depreciation in our client assets, primarily in equity assets, as global equity prices generally decreased in 2018, particularly towards the end of the year.
The mix of our average assets under supervision between long-term assets under supervision and liquidity products during 2018 was essentially unchanged compared with 2017.
In the future, if asset prices continue to decline, or investors continue to favor assets that typically generate lower fees or investors withdraw their assets, net revenues in Investment Management would likely be negatively impacted.
During 2017, Investment Management operated in an environment characterized by generally higher asset prices, resulting in appreciation in both equity and fixed income assets.
Our long-term assets under supervision increased from net inflows primarily in fixed income and alternative investment assets.
These increases were partially offset by net outflows in liquidity products.
As a result, the mix of our average assets under supervision during 2017 shifted slightly from liquidity products to long-term assets under supervision compared to the mix at the end of 2016.2018 versus 2017.
Net revenues in Investment Management were $7.02 billion for 2018, 13% higher than 2017, primarily due to significantly higher incentive fees, as a result of harvesting.
Management and other fees were also higher, reflecting higher average assets under supervision and the impact of the recently adopted revenue recognition standard, partially offset by shifts in the mix of client assets and strategies.
In addition, transaction revenues were higher.
See Note 3 to the consolidated financial statements for further information about ASU No.2014-09, “Revenue from Contracts with Customers (Topic 606).
” During 2018, total assets under supervision increased $48 billion to $1.54 trillion.
Long-term assets under supervision decreased $4 billion, including net market depreciation of $41 billion primarily in equity assets, largely offset by net inflows of $37 billion, primarily in fixed income and equity assets.
Liquidity products increased $52 billion.
Operating expenses were $5.27 billion for 2018, 10% higher than 2017, primarily due to the impact of the recently adopted revenue recognition standard and increased compensation and benefits expenses, reflecting higher net revenues.
Pre-tax earnings were $1.76 billion in 2018, 24% higher than 2017.
See Note 3 to the consolidated financial statements for further information about ASU No.2014-09, “Revenue from Contracts with Customers (Topic 606).
” 2017 versus 2016.
Net revenues in Investment Management were $6.22 billion for 2017, 7% higher than 2016, due to higher management and other fees, reflecting higher average assets under supervision, and higher transaction revenues.
During 2017, total assets under supervision increased $115 billion to $1.49 trillion.
Long-term assets under supervision increased $128 billion, including net market appreciation of $86 billion, primarily in equity and fixed income assets, and net inflows of $42 billion (which includes $20 billion of inflows in connection with the Verus acquisition and $5 billion of equity asset outflows in connection with the Australian divestiture), primarily in fixed income and alternative investment assets.
Liquidity products decreased $13 billion (which includes $3 billion of inflows in connection with the Verus acquisition).
Operating expenses were $4.80 billion for 2017, 3% higher than 2016, primarily due to increased compensation and benefits expenses, reflecting higher net revenues.
Pre-tax earnings were $1.42 billion in 2017, 25% higher than 2016.
Geographic Data See Note 25 to the consolidated financial statements for a summary of our total net revenues, pre-tax earnings and net earnings by geographic region.

<table><tr><td><i>$ in millions</i></td><td>Fair Value of Investments</td><td>Unfunded Commitments</td></tr><tr><td> As of December 2018</td><td></td><td></td></tr><tr><td>Private equity funds</td><td> $2,683</td><td> $ 809</td></tr><tr><td>Credit funds</td><td> 548</td><td> 1,099</td></tr><tr><td>Hedge funds</td><td> 161</td><td> –</td></tr><tr><td>Real estate funds</td><td> 544</td><td> 203</td></tr><tr><td> Total</td><td> $3,936</td><td> $2,111</td></tr><tr><td>As of December 2017</td><td></td><td></td></tr><tr><td>Private equity funds</td><td>$3,478</td><td>$ 614</td></tr><tr><td>Credit funds</td><td>266</td><td>985</td></tr><tr><td>Hedge funds</td><td>223</td><td>–</td></tr><tr><td>Real estate funds</td><td>629</td><td>201</td></tr><tr><td>Total</td><td>$4,596</td><td>$1,800</td></tr></table>
<table><tr><td><i>$ in millions</i></td><td>Less than 1 Year</td><td>1 - 5 Years</td><td>Greater than 5 Years</td><td>Total</td></tr><tr><td> As of December 2018</td><td></td><td></td><td></td><td></td></tr><tr><td> Assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rates</td><td>$ 2,810</td><td>$13,177</td><td>$47,426</td><td>$ 63,413</td></tr><tr><td>Credit</td><td>807</td><td>3,676</td><td>3,364</td><td>7,847</td></tr><tr><td>Currencies</td><td>10,976</td><td>5,076</td><td>6,486</td><td>22,538</td></tr><tr><td>Commodities</td><td>4,978</td><td>2,101</td><td>145</td><td>7,224</td></tr><tr><td>Equities</td><td>4,962</td><td>5,244</td><td>1,329</td><td>11,535</td></tr><tr><td>Counterparty netting in tenors</td><td>-3,409</td><td>-3,883</td><td>-2,822</td><td>-10,114</td></tr><tr><td>Subtotal</td><td>$21,124</td><td>$25,391</td><td>$55,928</td><td>$102,443</td></tr><tr><td>Cross-tenor counterparty netting</td><td></td><td></td><td></td><td>-13,143</td></tr><tr><td>Cash collateral netting</td><td></td><td></td><td></td><td>-48,724</td></tr><tr><td> Total OTC derivative assets</td><td></td><td></td><td></td><td>$40,576</td></tr><tr><td> Liabilities</td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rates</td><td>$ 4,193</td><td>$ 9,153</td><td>$29,377</td><td>$ 42,723</td></tr><tr><td>Credit</td><td>1,127</td><td>4,173</td><td>1,412</td><td>6,712</td></tr><tr><td>Currencies</td><td>13,553</td><td>6,871</td><td>4,474</td><td>24,898</td></tr><tr><td>Commodities</td><td>4,271</td><td>2,663</td><td>3,145</td><td>10,079</td></tr><tr><td>Equities</td><td>9,278</td><td>5,178</td><td>3,060</td><td>17,516</td></tr><tr><td>Counterparty netting in tenors</td><td>-3,409</td><td>-3,883</td><td>-2,822</td><td>-10,114</td></tr><tr><td>Subtotal</td><td>$29,013</td><td>$24,155</td><td>$38,646</td><td>$ 91,814</td></tr><tr><td>Cross-tenor counterparty netting</td><td></td><td></td><td></td><td>-13,143</td></tr><tr><td>Cash collateral netting</td><td></td><td></td><td></td><td>-39,127</td></tr><tr><td colspan="4">Total OTC derivative liabilities</td><td>$ 39,544</td></tr><tr><td>As ofDecember 2017</td><td></td><td></td><td></td><td></td></tr><tr><td> Assets</td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rates</td><td>$ 3,717</td><td>$15,445</td><td>$57,200</td><td>$ 76,362</td></tr><tr><td>Credit</td><td>760</td><td>4,079</td><td>3,338</td><td>8,177</td></tr><tr><td>Currencies</td><td>12,184</td><td>6,219</td><td>7,245</td><td>25,648</td></tr><tr><td>Commodities</td><td>3,175</td><td>2,526</td><td>181</td><td>5,882</td></tr><tr><td>Equities</td><td>4,969</td><td>5,607</td><td>1,387</td><td>11,963</td></tr><tr><td>Counterparty netting in tenors</td><td>-3,719</td><td>-4,594</td><td>-2,807</td><td>-11,120</td></tr><tr><td>Subtotal</td><td>$21,086</td><td>$29,282</td><td>$66,544</td><td>$116,912</td></tr><tr><td>Cross-tenor counterparty netting</td><td></td><td></td><td></td><td>-16,404</td></tr><tr><td>Cash collateral netting</td><td></td><td></td><td></td><td>-55,472</td></tr><tr><td>Total OTC derivative assets</td><td></td><td></td><td></td><td>$ 45,036</td></tr><tr><td> Liabilities</td><td></td><td></td><td></td><td></td></tr><tr><td>Interest rates</td><td>$ 4,517</td><td>$ 8,471</td><td>$33,193</td><td>$46,181</td></tr><tr><td>Credit</td><td>2,078</td><td>3,588</td><td>1,088</td><td>6,754</td></tr><tr><td>Currencies</td><td>14,326</td><td>7,119</td><td>4,802</td><td>26,247</td></tr><tr><td>Commodities</td><td>3,599</td><td>2,167</td><td>2,465</td><td>8,231</td></tr><tr><td>Equities</td><td>6,453</td><td>6,647</td><td>3,381</td><td>16,481</td></tr><tr><td>Counterparty netting in tenors</td><td>-3,719</td><td>-4,594</td><td>-2,807</td><td>-11,120</td></tr><tr><td>Subtotal</td><td>$27,254</td><td>$23,398</td><td>$42,122</td><td>$ 92,774</td></tr><tr><td colspan="2">Cross-tenor counterparty netting</td><td></td><td></td><td>-16,404</td></tr><tr><td>Cash collateral netting</td><td></td><td></td><td></td><td>-38,972</td></tr><tr><td colspan="4">Total OTC derivative liabilities</td><td>$ 37,398</td></tr></table>
<table><tr><td></td><td colspan="2">As of December</td></tr><tr><td><i>$ in millions</i></td><td> 2018</td><td>2017</td></tr><tr><td>Investment Banking:</td><td></td><td></td></tr><tr><td>Financial Advisory</td><td> $ 98</td><td>$ 98</td></tr><tr><td>Underwriting</td><td> 183</td><td>183</td></tr><tr><td>Institutional Client Services:</td><td></td><td></td></tr><tr><td>FICC Client Execution</td><td> 269</td><td>269</td></tr><tr><td>Equities client execution</td><td> 2,403</td><td>2,403</td></tr><tr><td>Securities services</td><td> 105</td><td>105</td></tr><tr><td>Investing & Lending</td><td> 91</td><td>2</td></tr><tr><td>Investment Management</td><td> 609</td><td>605</td></tr><tr><td> Total</td><td> $3,758</td><td>$3,665</td></tr></table>
<table><tr><td></td><td>Average for theYear Ended December</td></tr><tr><td><i>$ in billions</i></td><td>2018</td><td>2017</td><td>2016</td></tr><tr><td>Alternative investments</td><td>$ 171</td><td>$ 162</td><td>$ 149</td></tr><tr><td>Equity</td><td>329</td><td>292</td><td>256</td></tr><tr><td>Fixed income</td><td>665</td><td>633</td><td>578</td></tr><tr><td>Total long-term AUS</td><td>1,165</td><td>1,087</td><td>983</td></tr><tr><td>Liquidity products</td><td>352</td><td>330</td><td>326</td></tr><tr><td>Total AUS</td><td>$1,517</td><td>$1,417</td><td>$1,309</td></tr></table>

Question: what are the net revenues in investment management in 2016 , in billions?
Answer: 5.81308