Glossary - Capital Under Management
Capital Under Management refers to the total amount of capital or assets a fund manager or investment firm is managing on behalf of investors. This includes the money raised from investors as well as any profits earned from investments that have not yet been distributed. It represents the scale of operation and the level of trust investors have in the firm's management capabilities.
Also known as
- Assets Under Management (AUM)
Use cases examples
- Annual Report to Investors: As of the end of the fiscal year, our Capital Under Management has grown to $500 million, reflecting a 20% growth from the previous year.
- Venture Capital Firm's Website: Our firm specializes in technology startups, with over $750 million in Capital Under Management, demonstrating our significant presence in the venture capital ecosystem.
Considerations for investors
- Investors should consider the firm’s track record in managing a large Capital Under Management, as it can affect the firm's agility and the attention given to each investment.
- Higher Capital Under Management may imply larger fund sizes, which could impact the firm's investment strategy and the type of investments they pursue.
Considerations for founders
- Understanding the amount of Capital Under Management can give founders insights into the venture capital firm's ability to provide funding or follow-on investments.
- A firm with higher Capital Under Management might have access to a larger network and more resources, which could benefit the founder beyond mere financial investment.
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