• What is AUM?

  • May 8 2024
  • Length: 6 mins
  • Podcast

  • Summary

  • In this episode of the Venture Capital Podcast, hosts Jon Bradshaw and Peter Harris delve into the concept of Asset Under Management (AUM), a crucial term in the venture capital industry. They define AUM as the total amount of assets that a firm is managing, which can include the amount of money raised, invested, and the profits generated.

    The hosts discuss the importance of understanding AUM, particularly in private equity and hedge funds, where it is used to mark to market and provide a rough indication of the firm's size, deal types, and performance. They highlight the difference between AUM and the amount of cash on hand, emphasizing that firms typically hold very little cash due to the impact on their Internal Rate of Return (IRR) and fund performance.

    The conversation also touches on the various ways to calculate AUM, including the amount raised, invested, and profits generated. The hosts explain how AUM is affected by capital calls, distributions to investors, and the performance of investments.

    Throughout the episode, Jon and Peter provide insights into the venture capital industry, discussing how AUM is used to gauge the size and success of a firm, and how it can influence the perception of a firm's capabilities. They also share their own experiences with AUM, with Peter highlighting the importance of transparency in managing AUM, especially for student-run funds.

    Overall, this podcast episode offers a comprehensive explanation of AUM, its significance in the venture capital industry, and its impact on the performance and reputation of venture capital firms.

    Follow the Podcast
    Instagram: https://www.instagram.com/venturecapitalfm/
    Twitter: https://twitter.com/vcpodcastfm
    LinkedIn: https://www.linkedin.com/company/venturecapitalfm/
    Spotify: https://open.spotify.com/show/7BQimY8NJ6cr617lqtRr7N?si=ftylo2qHQiCgmT9dfloD_g&nd=1&dlsi=7b868f1b72094351
    Apple: https://podcasts.apple.com/us/podcast/venture-capital/id1575351789
    Website: https://www.venturecapital.fm/

    Follow Jon Bradshaw

    LinkedIn: https://www.linkedin.com/in/mrbradshaw/

    Instagram: https://www.instagram.com/mrjonbradshaw/
    Twitter: https://twitter.com/mrjonbradshaw

    Follow Peter Harris
    LinkedIn: https://www.linkedin.com/in/peterharris1

    Twitter: https://twitter.com/thevcstudent

    Instagram: https://instagram.com/shodanpete

    Youtube: https://www.youtube.com/@peterharris2812

    Show more Show less
activate_Holiday_promo_in_buybox_DT_T2

What listeners say about What is AUM?

Average customer ratings

Reviews - Please select the tabs below to change the source of reviews.