Hi guys, I have a brief question regarding the term Assets Under Management (AUM). In real estate does assets under management just mean the amount of investor capital that a firm has? Or does it include the value of gross assets, meaning real estate holdings at the time? Just curious because I am trying to understand how firms come up with this number.
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My understanding is it means gross assets.
That's what I thought too initially, but then I looked on Blackstone's website and their AUM specifically refers to investor capital they have access to. Is this a trend across firms? Or was Blackstone a unique case?
Wikipedia has AUM defined as:
"Capital raised from investors and capital belonging to the principals of the fund management firm."
When I see funds finish raising, they usually quote how much they raise, as well as their planned leverage to give their effective buying power.
I am talking more about company websites and when they claim that they have a certain amount in AUM. Curious as to what they are really referring to here.
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