I have been trying to track down an answer online, but responses have been all over the place. I'm looking to move to a LO and trying to figure out what constitutes a large fund vs. a small one? I know for a HF, a single PM managing $300mn would be nothing, while (excl. leverage) a book of $3bn would be quite massive. How does this compare to a LO?
Also, if you had to choose between a large fund within a lesser known LO, or a small fund in a well known LO like Wellington, which one would you choose? Does it matter?
IMO the AUM ranges for a small, medium and large AM shop is pretty subjective due to consolidation and skew from the very large players like Blackrock, Fidelity, etc. At the very least, 1 bln - 4 bln AUM should be the minimum for a decently established small AM firm. Lower than that, you don’t have enough AM to sustain the necessary infrastructure to be “professional”. Even 1 bln is kind of stretching it.
Arbitrary cutoffs
Small: less than $10b
Medium: $10-50b
Large: $50-$300b
Mega: $300b+
This is helpful, thank you.
I assume Large/Mega is mostly reserved for Fidelity and some of the other large funds? I'd imagine a $500bn AM running a fund with $50bn would be less common.
My comment was at the firm level. At the fund level, $50b is quite large.
Okay I misunderstood that. What would the cutoff be for the fund level? How would e.g. $25bn place?
25b is very large for a single fund. I am an intern but I think 5-10bn would prob be the lower bound for a fund to be considered large
Consequatur temporibus vero commodi aut deserunt. Quos perspiciatis voluptatum ipsam porro soluta commodi. Rerum tempore aliquam molestiae voluptatem fugit.
Est cum doloribus recusandae sint omnis provident sint consequatur. Et natus placeat in ut voluptas similique. Voluptate deleniti laudantium eligendi vel molestiae. Quod delectus distinctio iusto ut quae sed.
Nobis deserunt et et delectus veritatis illum recusandae. Quidem consequuntur fugit quis in magnam aliquam dolorum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...