MORGAN STANLEY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Fair Value of Investments That Calculate Net Asset Value.
The Company’s Investments measured at fair value were $8,013 million and $8,346 million at December 31, 2013 and December 31, 2012, respectively.
The following table presents information solely about the Company’s investments in private equity funds, real estate funds and hedge funds measured at fair value based on NAV at December 31, 2013 and December 31, 2012, respectively:
## Table 0 ##
(1) Fixed income/credit-related hedge funds, event-driven hedge funds, and multi-strategy hedge funds are redeemable at least on a threemonth period basis primarily with a notice period of 90 days or less.
At December 31, 2013, approximately 42% of the fair value amount of long-short equity hedge funds is redeemable at least quarterly, 42% is redeemable every six months and 16% of these funds have a redemption frequency of greater than six months.
The notice period for long-short equity hedge funds at December 31, 2013 is primarily greater than six months.
At December 31, 2012, approximately 36% of the fair value amount of long-short equity hedge funds is redeemable at least quarterly, 38% is redeemable every six months and 26% of these funds have a redemption frequency of greater than six months.
The notice period for long-short equity hedge funds at December 31, 2012 is primarily greater than six months.
Private Equity Funds.
Amount includes several private equity funds that pursue multiple strategies including leveraged buyouts, venture capital, infrastructure growth capital, distressed investments, and mezzanine capital.
In addition, the funds may be structured with a focus on specific domestic or foreign geographic regions.
These investments are generally not redeemable with the funds.
Instead, the nature of the investments in this category is that distributions are received through the liquidation of the underlying assets of the fund.
At December 31, 2013, it was estimated that 9% of the fair value of the funds will be liquidated in the next five years, another 55% of the fair value of the funds will be liquidated between five to 10 years and the remaining 36% of the fair value of the funds have a remaining life of greater than 10 years.
Real Estate Funds.
Amount includes several real estate funds that invest in real estate assets such as commercial office buildings, retail properties, multi-family residential properties, developments or hotels.
In addition, the funds may be structured with a focus on specific geographic domestic or foreign regions.
These investments are generally not redeemable with the funds.
Distributions from each fund will be received as the underlying investments of the funds are liquidated.
At December 31, 2013, it was estimated that 4% of the fair value of the funds will be liquidated within the next five years, another 52% of the fair value of the funds will be liquidated between five to 10 years and the remaining 44% of the fair value of the funds have a remaining life of greater than 10 years.
MORGAN STANLEY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) Lending Commitments.
Primary lending commitments are those that are originated by the Company whereas secondary lending commitments are purchased from third parties in the market.
The commitments include lending commitments that are made to investment grade and non-investment grade companies in connection with corporate lending and other business activities.
Commitments for Secured Lending Transactions.
Secured lending commitments are extended by the Company to companies and are secured by real estate or other physical assets of the borrower.
Loans made under these arrangements typically are at variable rates and generally provide for over-collateralization based upon the creditworthiness of the borrower.
Forward Starting Reverse Repurchase Agreements.
The Company has entered into forward starting securities purchased under agreements to resell (agreements that have a trade date at or prior to December 31, 2013 and settle subsequent to period-end) that are primarily secured by collateral from U. S.  government agency securities and other sovereign government obligations.
Commercial and Residential Mortgage-Related Commitments.
The Company enters into forward purchase contracts involving residential mortgage loans, residential mortgage lending commitments to individuals and residential home equity lines of credit.
In addition, the Company enters into commitments to originate commercial and residential mortgage loans.
Underwriting Commitments.
The Company provides underwriting commitments in connection with its capital raising sources to a diverse group of corporate and other institutional clients.
Other Lending Commitments.
Other commitments generally include commercial lending commitments to small businesses and commitments related to securities-based lending activities in connection with the Company’s Wealth Management business segment.
The Company sponsors several non-consolidated investment funds for third-party investors where the Company typically acts as general partner of, and investment advisor to, these funds and typically commits to invest a minority of the capital of such funds, with subscribing third-party investors contributing the majority.
The Company’s employees, including its senior officers, as well as the Company’s Directors, may participate on the same terms and conditions as other investors in certain of these funds that the Company forms primarily for client investment, except that the Company may waive or lower applicable fees and charges for its employees.
The Company has contractual capital commitments, guarantees, lending facilities and counterparty arrangements with respect to these investment funds.
Premises and Equipment.
The Company has non-cancelable operating leases covering premises and equipment (excluding commodities operating leases, shown separately).
At December 31, 2013, future minimum rental commitments under such leases (net of subleases, principally on office rentals) were as follows (dollars in millions):
## Table 1 ##
MORGAN STANLEY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) The Company’s U. S.  Bank Operating Subsidiaries.
The Company’s U. S.  bank operating subsidiaries are subject to various regulatory capital requirements as administered by U. S.  federal banking agencies.
Failure to meet minimum capital requirements can initiate certain mandatory and discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s U. S.  bank operating subsidiaries’ financial statements.
Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company’s U. S.  bank operating subsidiaries must meet specific capital guidelines that involve quantitative measures of the Company’s U. S.  bank operating subsidiaries’ assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices.
At December 31, 2013, the Company’s U. S.  bank operating subsidiaries met all capital adequacy requirements to which they are subject and exceeded all regulatory mandated and targeted minimum regulatory capital requirements to be well-capitalized.
There are no conditions or events that management believes have changed the Company’s U. S.  bank operating subsidiaries’ category.
The table below sets forth the capital information for the Company’s U. S.  bank operating subsidiaries, which are U. S.  depository institutions, calculated in a manner consistent with the guidelines described under Basel I in 2012.
In 2013, the RWAs disclosed reflect the implementation of the market risk capital framework amendment, commonly referred to as “Basel 2.5”, which became effective on January 1, 2013.
## Table 2 ##
(1) MSBNA’s Tier 1 capital ratio and Total capital ratio at December 31, 2012 were each reduced by approximately 50 basis points due to an approximate $2.0 billion adjustment to notional value of derivatives contracts, which resulted in an increase to MSBNA’s RWAs by such amount.
Under regulatory capital requirements adopted by the U. S.  federal banking agencies, U. S.  depository institutions, in order to be considered well-capitalized, must maintain a ratio of total capital to RWAs of 10%, a capital ratio of Tier 1 capital to RWAs of 6%, and a ratio of Tier 1 capital to average total assets (leverage ratio) of 5%.
Each U. S.  depository institution subsidiary of the Company must be well-capitalized in order for the Company to continue to qualify as a financial holding company and to continue to engage in the broadest range of financial activities permitted for financial holding companies.
At December 31, 2013 and December 31, 2012, the Company’s U. S.  depository institutions maintained capital at levels in excess of the universally mandated well-capitalized levels.
These subsidiary depository institutions maintain capital at levels sufficiently in excess of the “well-capitalized” requirements to address any additional capital needs and requirements identified by the federal banking regulators.
MS&Co.
and Other Broker-Dealers.
MS&Co.
is a registered broker-dealer and registered futures commission merchant and, accordingly, is subject to the minimum net capital requirements of the SEC, the Financial Industry Regulatory Authority, Inc.  and the U. S.  Commodity Futures Trading Commission (the “CFTC”).
MS&Co.
has consistently operated with capital in excess of its regulatory capital requirements.
MS&Co.
’s net capital totaled $7,201 million and $7,820 million at December 31, 2013 and December 31, 2012, respectively, which exceeded the amount required by $5,627 million and $6,453 million, respectively.
MS&Co.
is required to hold tentative net
MORGAN STANLEY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued) The following table presents a reconciliation of the beginning and ending amount of unrecognized tax benefits for 2013, 2012 and 2011 (dollars in millions):

<table><tr><td></td><td colspan="2"> At December 31, 2013</td><td colspan="2"> At December 31, 2012</td></tr><tr><td></td><td> Fair Value</td><td> Unfunded Commitment</td><td> Fair Value</td><td> Unfunded Commitment</td></tr><tr><td></td><td colspan="4"> (dollars in millions)</td></tr><tr><td>Private equity funds</td><td>$2,531</td><td>$559</td><td>$2,179</td><td>$644</td></tr><tr><td>Real estate funds</td><td>1,643</td><td>124</td><td>1,376</td><td>221</td></tr><tr><td>Hedge funds-1:</td><td></td><td></td><td></td><td></td></tr><tr><td>Long-short equity hedge funds</td><td>469</td><td>—</td><td>475</td><td>—</td></tr><tr><td>Fixed income/credit-related hedge funds</td><td>82</td><td>—</td><td>86</td><td>—</td></tr><tr><td>Event-driven hedge funds</td><td>38</td><td>—</td><td>52</td><td>—</td></tr><tr><td>Multi-strategy hedge funds</td><td>220</td><td>3</td><td>321</td><td>3</td></tr><tr><td>Total</td><td>$4,983</td><td>$686</td><td>$4,489</td><td>$868</td></tr></table>
<table><tr><td>Year Ended</td><td>Operating Premises Leases</td></tr><tr><td>2014</td><td>$672</td></tr><tr><td>2015</td><td>656</td></tr><tr><td>2016</td><td>621</td></tr><tr><td>2017</td><td>554</td></tr><tr><td>2018</td><td>481</td></tr><tr><td>Thereafter</td><td>2,712</td></tr></table>
<table><tr><td></td><td colspan="2">December 31, 2013</td><td colspan="2"> December 31, 2012</td></tr><tr><td></td><td> Amount</td><td>Ratio</td><td> Amount</td><td> Ratio</td></tr><tr><td></td><td colspan="4"> (dollars in millions)</td></tr><tr><td>Total capital (to RWAs):</td><td></td><td></td><td></td><td></td></tr><tr><td>MSBNA-1</td><td>$12,468</td><td>16.5%</td><td>$11,509</td><td>16.7%</td></tr><tr><td>MSPBNA</td><td>$2,184</td><td>26.6%</td><td>$1,673</td><td>28.8%</td></tr><tr><td>Tier 1 capital (to RWAs):</td><td></td><td></td><td></td><td></td></tr><tr><td>MSBNA-1</td><td>$10,805</td><td>14.3%</td><td>$9,918</td><td>14.4%</td></tr><tr><td>MSPBNA</td><td>$2,177</td><td>26.5%</td><td>$1,665</td><td>28.7%</td></tr><tr><td>Tier 1 leverage:</td><td></td><td></td><td></td><td></td></tr><tr><td>MSBNA</td><td>$10,805</td><td>10.6%</td><td>$9,918</td><td>13.3%</td></tr><tr><td>MSPBNA</td><td>$2,177</td><td>9.7%</td><td>$1,665</td><td>10.6%</td></tr></table>

Question: If MSBNA-1 for Total capital (to RWAs) develops with the same increasing rate in 2013, what will it reach in 2014? (in million)
Answer: 13506.90972