Called and Invested Capital The portion of committed capital that has been drawn down and deployed. Metric Definition Relevance to AUM Total Committed Capital The total amount LP investors have promised to provide.
Understanding Private Equity AUM Cyclical Trends
It is distinct from total committed capital, which reflects the promises made by investors. Drivers of Growth and Volatility in AUM The trajectory of private equity AUM is rarely linear, subject to cyclical market dynamics.
New fund launches and capital raises from existing firms contribute to a rapid expansion of aggregate industry AUM. Most firms operate on a fee-based model, charging management fees typically around 2% of AUM.
Understanding Private Equity AUM Cyclical Trends
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. The Strategic Importance of AUM for Firms and Investors Scale and Economies of Diligence For private equity firms, growing AUM is a primary strategic objective, as it directly correlates with revenue potential.
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.
