Fund Manager
AUM Meaning: Assets Under Management Explained
AUM Meaning: Assets Under Management Explained
Addhyan Negi
·
Last updated Nov 2026
The short answer: AUM means assets under management, the total value of the investments a manager runs for clients. For private fund managers there are two versions: the AUM you quote in a pitch deck, and regulatory AUM (RAUM), which the SEC defines on Form ADV as the gross value of the portfolios you manage, plus any uncalled commitments to your private funds. The second number drives registration thresholds, so it is worth getting right.
This guide covers what AUM stands for, how to calculate it, how regulatory AUM differs, the thresholds in the Form ADV instructions, and how SPV and fund managers track the inputs.
AUM meaning: assets under management, for fund and SPV managers.
What does AUM stand for?
AUM stands for assets under management. It is the market value of the investments a firm manages on behalf of clients at a given date. A wealth manager counts client brokerage accounts. A venture fund manager counts the fund's portfolio of company stakes and cash. A syndicate lead who runs a series of SPVs may count the value of the holdings in each vehicle.
The term shows up in three places for a fund manager: in marketing ("we manage $40M"), in investor due diligence questionnaires, and in regulatory filings. Only the last has a fixed definition, which is why two firms of similar size can quote very different AUM figures.
AUM meaning in finance vs regulatory AUM
In general finance usage, AUM has no single standard. Some firms report net asset value; some include committed capital; some include assets they advise on but do not manage. That flexibility is fine in a pitch, as long as you define it.
Regulatory assets under management is different. The SEC's Form ADV Part 1A instructions set out exactly how an adviser computes it in Item 5.F. That number determines whether an adviser can or must register with the SEC rather than a state, and it is public once filed. If you are building an advisory business, treat RAUM as the number of record and any marketing AUM as a derivative of it.
Marketing AUM | Regulatory AUM (Form ADV) | |
|---|---|---|
Definition | Set by the firm | Set by the Form ADV instructions, Item 5.F |
Debt | Often net of debt | Gross: do not deduct indebtedness or accrued liabilities |
Uncalled commitments | Sometimes included | Included for private funds |
Which accounts | Varies | Portfolios with continuous and regular supervisory or management services |
Where it appears | Decks, DDQs, website | Form ADV Part 1A, filed with the SEC |
Used for | Positioning | SEC vs state registration thresholds |
How to calculate AUM
For a simple marketing figure, add the current value of every account or vehicle you manage and state the date and method. For regulatory AUM, the Form ADV instructions give a step-by-step method. In plain terms:
Identify the securities portfolios. An account counts if at least 50% of its value is securities. Cash and cash equivalents can be treated as securities for this test.
Treat private funds as securities portfolios. The instructions say to treat all assets of a private fund as a securities portfolio, whatever the assets are.
Add uncalled commitments. For private funds, include any uncalled commitment an investor is obligated to contribute.
Use gross value. Do not deduct outstanding debt or accrued but unpaid liabilities.
Include all accounts you manage on that basis, including family or proprietary accounts, accounts you manage for free, and accounts of non-US clients.
Exclude what you do not manage, such as the portion of an account managed by another person.
How regulatory AUM is counted. Source: SEC Form ADV Part 1A Instructions, fetched Nov 2, 2026.
What counts as continuous and regular supervisory or management services?
The instructions describe two cases: you have discretionary authority and provide ongoing supervision of the account, or you do not have discretion but have ongoing responsibility to select or recommend investments and, if accepted, you arrange the trades. They also list factors, such as the advisory contract terms and how you are paid. A fee based on the average value of assets managed points toward continuous management; a fee for time spent with a client points away from it.
A worked example of the method
Take a manager with one venture fund. The fund holds startup stakes marked at $6M and $1M of cash, and investors have $3M of commitments not yet called. The fund borrowed nothing. Under the regulatory method, the manager counts the $7M of fund assets plus the $3M of uncalled commitments, for $10M of regulatory AUM. A marketing AUM figure based on net asset value would show $7M. These numbers are illustrative, not data on any real fund.
AUM thresholds that matter on Form ADV
The headline use of regulatory AUM is SEC eligibility. The Form ADV instructions for Item 2.A state that an adviser may register with the SEC once regulatory AUM reaches $100 million, must apply for SEC registration at $110 million, and, once registered, may remain registered at $90 million or more. A separate box covers mid-sized advisers with $25 million to $100 million in some circumstances. These thresholds come from SEC rule 203A-1.
Regulatory AUM thresholds stated in the Form ADV Part 1A instructions, Item 2.A.
Registration status depends on more than AUM: state rules, the type of clients and the exemptions an adviser relies on all matter. This article does not tell you which applies to you; that is a question for securities counsel. Our Form ADV guide for fund managers covers the filing itself.
AUM vs NAV, committed capital and fund size
Fund managers use several size measures that are easy to mix up. Keeping them apart matters when you fill out a DDQ or a regulatory form.
Measure | What it counts | Moves when |
|---|---|---|
Committed capital | What LPs agreed to contribute over the fund life | You hold a new close |
Called capital | Commitments already drawn down | You issue a capital call |
NAV | Fund assets minus liabilities, at fair value | Marks, calls, distributions |
AUM (marketing) | Firm-defined total of managed assets | Depends on your definition |
Regulatory AUM | Gross portfolio value plus uncalled commitments (private funds) | Marks, calls, new commitments |
Performance metrics such as TVPI and DPI are built from these figures too. If you report them, read our guide to fund performance metrics (IRR, MOIC, DPI, TVPI).
How SPV managers should think about AUM
A syndicate lead who runs many single-deal SPVs often asks whether the vehicles count toward AUM. For marketing, many leads add up the value held across their SPVs. For regulatory purposes, the answer depends on whether you provide advice to those vehicles on a continuous and regular basis and how they are structured, so it is a counsel question. What you can control is the data: you need, per vehicle, the current mark, the cash, any commitments still owed, and the date.
That is mostly an operations problem. When each SPV sits in a different spreadsheet, a firm-wide AUM figure takes days to assemble. When every vehicle sits on one fund administration platform with capital accounts and investor records, it is a report.
Common AUM mistakes
Netting out debt when computing regulatory AUM. The instructions say gross.
Leaving out uncalled commitments for private funds.
Mixing dates. Use one as-of date across all vehicles.
Not defining marketing AUM. Put a footnote with the method and date on every deck that quotes it.
Stale marks. If valuations are a year old, say so.
How Allocations fits
Allocations is formation and administration software for SPVs and funds. Every vehicle gets investor records, a cap table and capital account statements, which are the inputs you need to compute AUM. The published fee schedule lists a Fund plan at $19,500 per year with up to 249 investors for VC assets and 30 assets included, and SPVs from $9,950. See fund administration services for what the team handles. Allocations does not calculate or file your Form ADV for you. [NEEDS FACT: does the platform offer a firm-wide AUM / RAUM report across vehicles?]
Primary source: SEC, Form ADV Part 1A Instructions (Item 2.A and Instruction 5.b), fetched Nov 2, 2026.
FAQ
What does AUM stand for?
AUM stands for assets under management: the total market value of the investments a manager oversees for clients. In private funds it usually includes fund assets and, for regulatory AUM, uncalled capital commitments.
How do you calculate AUM?
Add the current value of every portfolio you manage. For the SEC's regulatory AUM on Form ADV, count the gross value of securities portfolios you give continuous and regular supervisory or management services, do not subtract debt, and for private funds add uncalled commitments.
What is the difference between AUM and regulatory AUM?
AUM is a general term and firms define it in different ways in marketing. Regulatory AUM (RAUM) is the figure defined in the Form ADV instructions, Item 5.F. It is gross of debt and includes uncalled private fund commitments, so it is often higher than net asset value.
At what AUM must an adviser register with the SEC?
Under the Form ADV instructions, an adviser may register with the SEC at $100 million of regulatory AUM and must apply to register at $110 million, and an SEC-registered adviser may stay registered at $90 million or more. Other eligibility bases and exemptions exist, so check the rules with counsel.
Is AUM the same as fund size or committed capital?
No. Committed capital is what investors promised to contribute. AUM measures what you manage at a point in time and moves with valuations, calls and distributions. Regulatory AUM for a private fund adds the uncalled part of commitments to asset value.
Disclaimer
This article is general information about how private funds and SPVs work. It is not legal, tax or investment advice, and it is not an offer to sell or a solicitation of an offer to buy any security. Prices are as published on allocations.com on Nov 2, 2026 and can change; confirm current terms before you rely on them. Rules change and every vehicle is different, so speak with qualified legal and tax advisers about your situation. AllocationsX is operated by Allocations Securities, LLC, member FINRA/SIPC.
Last updated Nov 2026
The short answer: AUM means assets under management, the total value of the investments a manager runs for clients. For private fund managers there are two versions: the AUM you quote in a pitch deck, and regulatory AUM (RAUM), which the SEC defines on Form ADV as the gross value of the portfolios you manage, plus any uncalled commitments to your private funds. The second number drives registration thresholds, so it is worth getting right.
This guide covers what AUM stands for, how to calculate it, how regulatory AUM differs, the thresholds in the Form ADV instructions, and how SPV and fund managers track the inputs.
AUM meaning: assets under management, for fund and SPV managers.
What does AUM stand for?
AUM stands for assets under management. It is the market value of the investments a firm manages on behalf of clients at a given date. A wealth manager counts client brokerage accounts. A venture fund manager counts the fund's portfolio of company stakes and cash. A syndicate lead who runs a series of SPVs may count the value of the holdings in each vehicle.
The term shows up in three places for a fund manager: in marketing ("we manage $40M"), in investor due diligence questionnaires, and in regulatory filings. Only the last has a fixed definition, which is why two firms of similar size can quote very different AUM figures.
AUM meaning in finance vs regulatory AUM
In general finance usage, AUM has no single standard. Some firms report net asset value; some include committed capital; some include assets they advise on but do not manage. That flexibility is fine in a pitch, as long as you define it.
Regulatory assets under management is different. The SEC's Form ADV Part 1A instructions set out exactly how an adviser computes it in Item 5.F. That number determines whether an adviser can or must register with the SEC rather than a state, and it is public once filed. If you are building an advisory business, treat RAUM as the number of record and any marketing AUM as a derivative of it.
Marketing AUM | Regulatory AUM (Form ADV) | |
|---|---|---|
Definition | Set by the firm | Set by the Form ADV instructions, Item 5.F |
Debt | Often net of debt | Gross: do not deduct indebtedness or accrued liabilities |
Uncalled commitments | Sometimes included | Included for private funds |
Which accounts | Varies | Portfolios with continuous and regular supervisory or management services |
Where it appears | Decks, DDQs, website | Form ADV Part 1A, filed with the SEC |
Used for | Positioning | SEC vs state registration thresholds |
How to calculate AUM
For a simple marketing figure, add the current value of every account or vehicle you manage and state the date and method. For regulatory AUM, the Form ADV instructions give a step-by-step method. In plain terms:
Identify the securities portfolios. An account counts if at least 50% of its value is securities. Cash and cash equivalents can be treated as securities for this test.
Treat private funds as securities portfolios. The instructions say to treat all assets of a private fund as a securities portfolio, whatever the assets are.
Add uncalled commitments. For private funds, include any uncalled commitment an investor is obligated to contribute.
Use gross value. Do not deduct outstanding debt or accrued but unpaid liabilities.
Include all accounts you manage on that basis, including family or proprietary accounts, accounts you manage for free, and accounts of non-US clients.
Exclude what you do not manage, such as the portion of an account managed by another person.
How regulatory AUM is counted. Source: SEC Form ADV Part 1A Instructions, fetched Nov 2, 2026.
What counts as continuous and regular supervisory or management services?
The instructions describe two cases: you have discretionary authority and provide ongoing supervision of the account, or you do not have discretion but have ongoing responsibility to select or recommend investments and, if accepted, you arrange the trades. They also list factors, such as the advisory contract terms and how you are paid. A fee based on the average value of assets managed points toward continuous management; a fee for time spent with a client points away from it.
A worked example of the method
Take a manager with one venture fund. The fund holds startup stakes marked at $6M and $1M of cash, and investors have $3M of commitments not yet called. The fund borrowed nothing. Under the regulatory method, the manager counts the $7M of fund assets plus the $3M of uncalled commitments, for $10M of regulatory AUM. A marketing AUM figure based on net asset value would show $7M. These numbers are illustrative, not data on any real fund.
AUM thresholds that matter on Form ADV
The headline use of regulatory AUM is SEC eligibility. The Form ADV instructions for Item 2.A state that an adviser may register with the SEC once regulatory AUM reaches $100 million, must apply for SEC registration at $110 million, and, once registered, may remain registered at $90 million or more. A separate box covers mid-sized advisers with $25 million to $100 million in some circumstances. These thresholds come from SEC rule 203A-1.
Regulatory AUM thresholds stated in the Form ADV Part 1A instructions, Item 2.A.
Registration status depends on more than AUM: state rules, the type of clients and the exemptions an adviser relies on all matter. This article does not tell you which applies to you; that is a question for securities counsel. Our Form ADV guide for fund managers covers the filing itself.
AUM vs NAV, committed capital and fund size
Fund managers use several size measures that are easy to mix up. Keeping them apart matters when you fill out a DDQ or a regulatory form.
Measure | What it counts | Moves when |
|---|---|---|
Committed capital | What LPs agreed to contribute over the fund life | You hold a new close |
Called capital | Commitments already drawn down | You issue a capital call |
NAV | Fund assets minus liabilities, at fair value | Marks, calls, distributions |
AUM (marketing) | Firm-defined total of managed assets | Depends on your definition |
Regulatory AUM | Gross portfolio value plus uncalled commitments (private funds) | Marks, calls, new commitments |
Performance metrics such as TVPI and DPI are built from these figures too. If you report them, read our guide to fund performance metrics (IRR, MOIC, DPI, TVPI).
How SPV managers should think about AUM
A syndicate lead who runs many single-deal SPVs often asks whether the vehicles count toward AUM. For marketing, many leads add up the value held across their SPVs. For regulatory purposes, the answer depends on whether you provide advice to those vehicles on a continuous and regular basis and how they are structured, so it is a counsel question. What you can control is the data: you need, per vehicle, the current mark, the cash, any commitments still owed, and the date.
That is mostly an operations problem. When each SPV sits in a different spreadsheet, a firm-wide AUM figure takes days to assemble. When every vehicle sits on one fund administration platform with capital accounts and investor records, it is a report.
Common AUM mistakes
Netting out debt when computing regulatory AUM. The instructions say gross.
Leaving out uncalled commitments for private funds.
Mixing dates. Use one as-of date across all vehicles.
Not defining marketing AUM. Put a footnote with the method and date on every deck that quotes it.
Stale marks. If valuations are a year old, say so.
How Allocations fits
Allocations is formation and administration software for SPVs and funds. Every vehicle gets investor records, a cap table and capital account statements, which are the inputs you need to compute AUM. The published fee schedule lists a Fund plan at $19,500 per year with up to 249 investors for VC assets and 30 assets included, and SPVs from $9,950. See fund administration services for what the team handles. Allocations does not calculate or file your Form ADV for you. [NEEDS FACT: does the platform offer a firm-wide AUM / RAUM report across vehicles?]
Primary source: SEC, Form ADV Part 1A Instructions (Item 2.A and Instruction 5.b), fetched Nov 2, 2026.
FAQ
What does AUM stand for?
AUM stands for assets under management: the total market value of the investments a manager oversees for clients. In private funds it usually includes fund assets and, for regulatory AUM, uncalled capital commitments.
How do you calculate AUM?
Add the current value of every portfolio you manage. For the SEC's regulatory AUM on Form ADV, count the gross value of securities portfolios you give continuous and regular supervisory or management services, do not subtract debt, and for private funds add uncalled commitments.
What is the difference between AUM and regulatory AUM?
AUM is a general term and firms define it in different ways in marketing. Regulatory AUM (RAUM) is the figure defined in the Form ADV instructions, Item 5.F. It is gross of debt and includes uncalled private fund commitments, so it is often higher than net asset value.
At what AUM must an adviser register with the SEC?
Under the Form ADV instructions, an adviser may register with the SEC at $100 million of regulatory AUM and must apply to register at $110 million, and an SEC-registered adviser may stay registered at $90 million or more. Other eligibility bases and exemptions exist, so check the rules with counsel.
Is AUM the same as fund size or committed capital?
No. Committed capital is what investors promised to contribute. AUM measures what you manage at a point in time and moves with valuations, calls and distributions. Regulatory AUM for a private fund adds the uncalled part of commitments to asset value.
Disclaimer
This article is general information about how private funds and SPVs work. It is not legal, tax or investment advice, and it is not an offer to sell or a solicitation of an offer to buy any security. Prices are as published on allocations.com on Nov 2, 2026 and can change; confirm current terms before you rely on them. Rules change and every vehicle is different, so speak with qualified legal and tax advisers about your situation. AllocationsX is operated by Allocations Securities, LLC, member FINRA/SIPC.
Addhyan Negi
Director of Marketing, Allocations
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Allocations secondary market is operated through Allocations Securities, LLC dba AllocationsX, member FINRA/SIPC. Check this firm on FINRA BrokerCheck. Allocations Securities, LLC is a wholly owned subsidiary of Allocations, Inc.
Copyright © Allocations Inc
Allocations secondary market is operated through Allocations Securities, LLC dba AllocationsX, member FINRA/SIPC. Check this firm on FINRA BrokerCheck. Allocations Securities, LLC is a wholly owned subsidiary of Allocations, Inc.
Copyright © Allocations Inc
Allocations secondary market is operated through Allocations Securities, LLC dba AllocationsX, member FINRA/SIPC. Check this firm on FINRA BrokerCheck. Allocations Securities, LLC is a wholly owned subsidiary of Allocations, Inc.
Copyright © Allocations Inc