20 Comments
 

no.

Don't know as much about fundraising for HFs, but for private equity funds many accept anything from 5mm + per investor, but they range in size from like 50mm to many billions with that limitation

 

I was just wondering because one time I asked this in an interview and I got what seemed like a dirty look or a scowl before they answered... and it's not like it was displayed on their webpage or something.

 
Mr.MachinaI was just wondering because one time I asked this in an interview and I got what seemed like a dirty look or a scowl before they answered... and it's not like it was displayed on their webpage or something.

It's a very common question that people in the business talk about. When I meet peers at conferences, etc. we'll ask each other how much we manage. So, if they got mad I can only assume they aren't managing much (i.e., less than $1B).

The reaction you got is not normal, so I wouldn't worry about it.

 

There aum is a good gauge of how many employees they can hire, how well they can pay you and whehter they are going to be around for a while.

The guy probably gave you a dirty look because either he thought you should of known their AUM already before the interview or you he was embarrassed by how small his aum was

If they have under $30mm and have not recently launched - you should be worried.

$100mm means they can support a small team and have a chance of being a good place to launch a career

over $500mm and they are likely going to be around for a while

 

ok....lot of stupid stuff in here.

  1. There is no relationship between minimum investment amount and AUM
  2. There is no relationship between the number of investors and AUM (lots of funds with c$500m under management wth only 4 or 5 investors and loads of $10m funds with 40 investors)

You can ask about AUM, most will tell you, some will only release that number to existing investors or those in final stages of DD.

 

Do you have access to databases? Morningstar lists AUM. You could also try and find a description of the particular fund on wikipedia or a HF site. Getting exact numbers is hard because some funds like to keep that information private.

"Greed, in all of its forms; greed for life, for money, for love, for knowledge has marked the upward surge of mankind. And greed, you mark my words, will not only save Teldar Paper, but that other malfunctioning corporation called the USA."
 

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