For investors navigating private markets, few metrics are more frequently cited—or more widely misunderstood—than Assets Under Management (AUM). While headline figures often signal scale, they rarely offer transparency.
Beneath the surface, AUM tells a broader story: of capital raised, capital risked, and capital returned. But the truth lies in the details.
At investment firms such as SWI Group, co‑led by French entrepreneur Max‑Hervé George, AUM isn’t treated as a promotional metric. It’s a structural one, shaped by investor trust, sector discipline, and capital architecture. To evaluate a manager’s credibility, six core questions should be asked.
1. What Types of Assets Are Counted in AUM?
Committed, Drawn, or Leveraged?
Not all AUM is equal. Some firms include uncalled capital, others add leverage, while a few take a more conservative approach by focusing on net deployed capital.
A sophisticated investor should inquire whether the AUM includes dry powder, discretionary mandates, or externally co-managed funds. The more granular the response, the more likely the firm is operating with institutional rigor.
SWI Group, backed by multi-asset platform Icona Capital, discloses AUM based on real capital under management, segmented by strategy and region.
2. How Is the Capital Structured?
Sector Concentration vs. Strategic Spread
AUM concentrated in a single asset class—such as hospitality or logistics—may increase volatility. Meanwhile, a portfolio structured across multiple verticals often reflects strategic clarity and operational range.
Icona Capital manages diversified exposure across data centers, real estate, and private credit, each underpinned by differentiated investment teams and mandates. This architecture helps manage macro shifts while preserving risk-adjusted returns.
3. What Is the Duration of the Capital?
Patient or Opportunistic?
AUM backed by long-term capital—especially from pension funds or sovereign investors—enables firms to invest with a steady hand. Short-term lockups, on the other hand, can create pressure to chase liquidity or performance at the expense of portfolio integrity.
George’s investment philosophy favors long-horizon capital, with structures designed to support infrastructure-scale projects and compounding returns over cycles.
4. What Are the Fee Dynamics?
Revenue vs. Value Creation
Management fees based on AUM are typically predictable, but not always transparent. Investors should assess the firm’s fee structure: how much is fixed vs. performance-based? What proportion of income stems from recurring fees vs. exits?
Healthy AUM growth should be supported by a fee model that enables sustainable operations without distorting incentives. At SWI, the focus remains on performance alignment and platform reinvestment.
5. What Is the Source of AUM Growth?
Organic, Strategic, or Acquired?
Where AUM growth comes from matters. Firms that raise capital organically through performance tend to have stronger investor relationships than those relying on aggressive roll-ups or opaque acquisitions.
SWI Group’s recent €280 million Cromwell transaction, for example, expanded its pan-European real estate footprint—but followed years of groundwork with capital partners and regulatory stakeholders.
6. How Closely Does AUM Align With the Firm’s Investment Mandate?
Intentional or Opportunistic Capital?
Ultimately, AUM should reflect the firm’s investment philosophy. Is the capital being deployed in sectors where the firm has real expertise? Or is it drifting across verticals to chase yield?
George’s approach at SWI Group and Icona Capital centers on sectors with structural upside: real assets, digital infrastructure, and alternative credit. That conviction is reflected in how AUM is raised—and where it goes.
In a crowded capital environment, the headline AUM is no longer sufficient. Serious investors are asking sharper questions—about composition, structure, duration, and return mechanics.
When understood correctly, AUM becomes more than a number. It becomes a blueprint: for strategy, scale, and stewardship.
