AUM (Assets Under Management)

Assets under management (AUM) is the total market value of investments that a fund manager is responsible for managing on behalf of investors. In private markets, AUM is typically reported as the aggregate fair value of fund assets (NAV plus any fund-level debt) or, in some industry conventions, as committed capital across a manager's funds that has not yet been fully realised.

How it works

AUM is a headline measure of manager scale rather than a precise accounting figure, and its definition varies across managers, regulators, and data providers. This variation makes direct comparisons between managers using AUM figures require caution unless the basis of calculation is specified.

The most common definitions in private markets use one of three bases. The first is fair value of investments plus uncalled commitments (committed capital AUM), which includes both the current market value of deployed assets and the capital committed but not yet drawn. This definition is commonly used by PE and VC managers to capture their full economic footprint. The second is fair value of assets only (invested AUM), which represents the current portfolio value and excludes uncalled commitments. The third is AIFMD-defined AUM, which is the regulatory definition under the Alternative Investment Fund Managers Directive and includes not only the market value of assets but also exposure from leverage and derivatives. AIFMs must report AUM on this basis for regulatory threshold purposes (the EUR 100M and EUR 500M AIFMD thresholds that determine whether an AIFM is subject to full or lighter-touch regulation are calculated on this basis).

Private fund administrators report AUM in LP statements and regulatory filings. The administrator's role is to calculate AUM accurately on the basis specified by the GP and applicable regulation, reconciling NAV statements, uncalled commitments, and leverage positions. For multi-fund managers, aggregate AUM is summed across all active funds.

Management fees in some credit and infrastructure fund structures are based on AUM (or a proxy for it, such as NAV). In these cases, the administrator's AUM calculation directly determines the fee due to the GP, creating a control point that must be independently verified.

Worked example

Ashgrove Capital Partners manages four funds simultaneously: Fund I (mature, EUR 200M NAV, EUR 50M uncalled): Fund II (deployment phase, EUR 400M NAV, EUR 150M uncalled); Fund III (commitment phase, EUR 0 NAV, EUR 350M committed); a separately managed account (EUR 120M NAV, EUR 0 uncalled).

Committed capital AUM (fair value of assets plus uncalled commitments): EUR 200M + EUR 50M + EUR 400M + EUR 150M + EUR 0M + EUR 350M + EUR 120M + EUR 0 = EUR 1.27B.

Invested AUM (fair value only): EUR 200M + EUR 400M + EUR 0M + EUR 120M = EUR 720M.

For AIFMD purposes, Ashgrove's AIFM must calculate AUM inclusive of leverage and derivatives exposure for regulatory reporting. If Fund II employs a EUR 80M subscription line and EUR 120M NAV facility, total AIFMD-basis AUM for Fund II is EUR 400M NAV + EUR 80M subscription line + EUR 120M NAV facility = EUR 600M. Ashgrove's AIFM must ensure it holds the appropriate AIFM authorisation level for its total AIFMD AUM across all funds.

Frequently asked questions

What is the difference between AUM, AUA, and committed capital? AUM refers to assets the manager controls and makes investment decisions over. AUA (assets under administration) refers to assets an administrator services on behalf of a manager; the administrator does not make investment decisions. A fund administrator's AUA will include AUM from multiple managers. Committed capital is a sub-component of AUM under committed capital definitions and refers specifically to LP commitments, not the fair value of assets.

Why do AUM figures differ between different data sources for the same manager? Each data provider may use a different AUM definition (fair value of assets, committed capital, or gross assets including leverage). Additionally, managers may disclose AUM selectively or use internal definitions that differ from industry standards. Regulatory disclosures (AIFMD Annex IV filings, SEC Form ADV) use standardised definitions and are more comparable, though they cover different regulatory populations.

Is AUM a good measure of manager quality? AUM reflects manager scale rather than quality. Larger AUM can indicate investor confidence and successful fundraising, but it can also reflect a manager's ability to raise capital rather than to generate returns. Performance-per-unit-of-AUM metrics (such as IRR by vintage year relative to peers) are more informative quality measures. Very large AUM can indicate size-driven return dilution in strategies where deal size limits performance.

How does AUM growth affect fund administration operations? Higher AUM typically means more LPs, more fund entities, more capital events, and more complex reporting obligations. Fund administrators who serve managers growing their AUM need scalable processes for capital call processing, LP onboarding, NAV calculation, and regulatory reporting. Breakdowns in process under AUM growth pressure are a common source of operational risk for fund administrators.

Related terms

AUA, NAV, Commitment, Capital account, AIFMD and capital calls, Transfer agency

Related pages

AUM reporting and regulatory compliance for fund administrators, Swelv for fund administrators