The calculation excludes capital reserves held in the investment fund but rather focuses on the deployed capital actively working within businesses. Called and Invested Capital The portion of committed capital that has been drawn down and deployed.
Strategies to Boost Returns on Deployed Private Equity AUM
They possess the internal expertise and bandwidth to support portfolio companies through significant operational transformations, a value proposition that resonates with limited partners (LPs) seeking active ownership. However, AUM must be analyzed alongside other metrics to avoid misinterpretation.
New fund launches and capital raises from existing firms contribute to a rapid expansion of aggregate industry AUM. A firm may raise $10 billion in a fund, but if only $6 billion has been called and invested, the private equity AUM sits at that $6 billion figure.
Strategies to Boost Returns on Deployed Private Equity AUM
Metric Definition Relevance to AUM Total Committed Capital The total amount LP investors have promised to provide. This scale also provides a competitive edge during deal sourcing.
More About Private equity assets under management
Looking at Private equity assets under management from another angle can help expand the discussion and give readers a second clear paragraph under the same section.
More perspective on Private equity assets under management can make the topic easier to follow by connecting earlier points with a few simple takeaways.
