What is "AUM" in PE?
Is it: 1. "Book value" of their stake in portfolio companies? 2. "Total Book value" of all companies under their "control" (usually >50% equity)? 3. "Market value at the time of investment" of their stake in portfolio companies? 4. "Market value at the time of investment" of all companies under their "control" (usually >50% equity)? 5. "Current value" of their stake in portfolio companies? 6. "Current value" of all companies under their "control" (usually >50% equity)?
How is it different from say Asset Management companies that hold highly liquid investments which can be valued every minute (by bloomberg or whatever)?
I am wondering because I was looking at 3i's annual results and one of the ratios it uses is "Net asset value per share". I am trying to think how this will be practically calculated? And how does it compare to AUM?
Thanks!
Go and look at 3i's report, they're really transparent about this. Their latest annual report is giving me a corrupted PDF message, but if you look at http://2007annualreport.3igroup.com/additional_financial_information/ it lists their AUM valuation. For further detail on that, you'll want to look at http://2007annualreport.3igroup.com/financial_statements/fin_st_portfol… and http://2007annualreport.3igroup.com/additional_financial_information/3i… and http://2007annualreport.3igroup.com/financial_statements/fin_st_account…
For a more general question about PE aum, see //www.wallstreetoasis.com/forums/pe-question - however, that's not directly applicable to the metric you're looking at in 3i's case
Good answer
What exactly is included in AUM? (Originally Posted: 08/26/2009)
Hi all. I would like to know, if the VC/PE firm doesn't specify on its website, exactly how much assets they have under management. For example, if the firm says it "has invested 1 billion over since 1990", is that 1 billion AUM? I would think not because many of the investments have exited right? Those exited would not be counted towards AUM？
If it has raised a new 300 million fund, you just add it straight to the AUM?
Thanks.
Yes
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