Difference Btw Commited Capital and AUM?
In PE, is there a difference between committed capital and assets under management?
I was told that committed capital include only equity invested in the fund by limited and general partners while AUM is all the assets under management - that is, the number will be much higher than committed capital as the portfolio companies were bought using the investors' money and borrowed debt.
Is this true?
You should probably check out this thing called google.
This is covered on CFA L2 also.
You should google and see if it comes up with anything before assuming people didn't google. Population on this board is mainly college students...do you think we are at CFA L2?
Since you already know, I think it would've been much easier if you just answered the question instead of circling around.
Fair enough. I think committed capital is more pertaining to the certain fund i.e "TJ's PE shop TMT fund XYZ" vs AUM being more related to the firm i.e "TJ's PE shop ($500bn AUM)".
Could be wrong.
http://www.wallstreetoasis.com/forums/what-is-aum-in-pe
Also, quick search pulled this up.
nevermind.
http://www.investopedia.com/terms/c/committedcapital.asp
http://www.investopedia.com/terms/a/aum.asp
there you go
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