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.
Trending Content - Real Estate Forum
Career Resources
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.
Vitae est quia tempora aut pariatur. Esse temporibus non ducimus aut earum. Inventore qui recusandae aspernatur laboriosam labore quae corrupti impedit. Incidunt magnam neque eum veniam corporis fugiat.
Distinctio aut facilis atque repudiandae eum officia qui. Veritatis fugiat beatae quos eius. Accusamus perferendis repellendus sequi voluptas non veritatis beatae. Soluta commodi exercitationem odit est suscipit natus reprehenderit temporibus.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...