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AUM

Assets under management: the total value of assets a manager runs for investors. The crudest measure of scale, and historically the one prime brokerage cap intro teams used to decide who received attention.

AUM — Assets under management: the total value of assets a manager runs for investors. The crudest measure of scale, and historically the one prime brokerage cap intro teams used to decide who received attention.

AUM is a scale measure, not a quality measure, and calculation methods vary — some managers include committed-but-uncalled capital, others count only invested capital, and some include leverage. Comparing two managers' AUM figures without checking the methodology behind each can be misleading.

Frequently asked questions

Does higher AUM mean a better manager?

No — AUM measures scale, not skill or fit. A smaller fund can outperform and be a better fit for a given allocator's needs than a larger one.

Why did prime brokerage capital introduction historically favour high-AUM funds?

Because cap intro was funded by trading and financing revenue, which scales with AUM — so attention flowed to the largest, most revenue-generating clients.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

Dry powderCommitted capital not yet called — the gap between what investors have promised and what h Fund of fundsA fund investing in other funds rather than directly in assets. Professional selectors, in GPGeneral partner: the manager of a fund. Runs the strategy, makes investment decisions, and

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