AUM (Assets Under Management)
Private Credit glossary · Private Credit Fundamentals
Definition
Total market value of investments managed by an asset manager on behalf of clients.
AUM (Assets Under Management) in plain English
AUM, or Assets Under Management, is simply the total dollar value of all the money an investment firm is looking after on behalf of its clients. If a fund manager is investing money for many people, you add up everyone's holdings at today's market value, and that grand total is the AUM. It matters because it's the headline scoreboard for how big a firm is — and because managers usually earn a fee that's a small percentage of it, so bigger AUM generally means bigger income. Think of it like the total value of cars parked in a valet lot: the valet doesn't own the cars, but the size of the lot tells you how much they're responsible for.
Also called: Assets Under Management
Practice AUM (Assets Under Management)
Related Private Credit terms
Private Credit practice questions · Private Credit flashcards · Private Credit study guide