---
title: "What Is AUM?"
term: "AUM"
description: "AUM (assets under management) is the total market value of capital a fund or investment firm oversees on behalf of clients. For VC firms, headline AUM includes deployed portfolio value plus uncalled commitments depending on how the firm reports."
date: 2026-07-25T00:00:00.000Z
updated: 2026-07-25T00:00:00.000Z
topics: ["fund-economics", "metrics"]
source: https://venturecapitaltracker.com/glossary/aum
---

# What Is AUM?

> AUM (assets under management) is the total market value of capital a fund or investment firm oversees on behalf of clients. For VC firms, headline AUM includes deployed portfolio value plus uncalled commitments depending on how the firm reports.

**AUM (assets under management)** measures how much capital an investment manager oversees. Venture firms cite AUM in fundraising decks; LPs use it alongside performance to allocate to funds.

## How it works

Public managers often define AUM as fair value of invested assets plus dry powder (uncalled commitments). A $500M fund with $300M deployed and $200M uncalled might report $500M AUM, or only $300M if the firm counts invested capital alone — definitions vary.

AUM grows when the firm raises new funds, portfolio marks appreciate, and follow-on reserves deploy. It shrinks on distributions, write-offs, and fund sunsets. Multi-fund firms sum across vintages; some report regulatory AUM separately from brand AUM including co-invest and SPV vehicles.

Management fees typically apply to committed or invested capital per the LPA, not necessarily the same base as marketed AUM. Carry economics tie to profits, not AUM size alone.

## Why it matters

- **LPs:** Scale AUM against team size and strategy. A $5B growth fund with twelve partners differs from five seed funds with the same headline AUM.
- **GPs:** AUM growth supports brand and recruiting but invites questions on deployment pace and return concentration.
- **Founders:** Ask about fund size and remaining investment period, not firm-wide AUM — a mega-fund's total AUM does not mean a large seed check for you.

## Common mistake

Equating industry AUM headlines with near-term funding availability for your round. LP allocation cycles and fund-specific reserves determine who actually writes the check.

## Related ideas

[/glossary/asset-allocation](/glossary/asset-allocation), dry powder, committed capital, and fund vintage.

## FAQ

### What is AUM in simple terms?

Assets under management is the total money an investment firm manages — invested assets plus, for many private funds, uncalled commitments LPs still owe. It is a size metric, not a pile of cash in one account.

### Why does AUM matter?

LPs compare firms by AUM growth, strategy, and performance. Large AUM can mean brand and follow-on capacity, but also deployment pressure and fee scale. Founders should not confuse firm AUM with check size available for their stage.


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Source: https://venturecapitaltracker.com/glossary/aum