Assets Under Management (AUM)

Assets Under Management (AUM) represents the total market value of investments that a family office manages on behalf of clients.

Components of AUM:

- Liquid investments (stocks, bonds, mutual funds)

- Alternative investments (private equity, hedge funds, real estate)

- Direct investments and operating businesses

- Art, collectibles, and other tangible assets

AUM Significance:

- Primary metric for family office size and capability

- Basis for management fee calculations

- Indicator of investment expertise and resources

- Benchmark for operational efficiency

Industry Benchmarks:

- Small family offices: $100 million - $1 billion AUM

- Mid-size family offices: $1-5 billion AUM

- Large family offices: $5+ billion AUM

AUM Growth Factors:

- Market appreciation of existing investments

- Additional family wealth creation

- New client acquisition (for multi-family offices)

- Successful investment performance

AUM is the foundation metric that determines a family office's business model, fee structure, and service capabilities.