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
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