How Can a Family Office Verify That a Fund's Stated Assets Under Management Are Accurate?

Check a fund's stated assets under management by defining exactly what the figure includes, then tracing it to dated records at the fund and investment level. AUM can describe different things, so a headline number without a clear calculation is difficult to compare or rely on.

Define the Reported Figure

Ask for the calculation date, the definition used, plus a bridge from the prior reported amount. Clarify whether the figure means committed capital, contributed capital, gross asset value, or net asset value. Ask whether it includes uncalled commitments, borrowing, accrued income, affiliated vehicles, or assets managed outside the fund. These categories can produce very different totals.

For a group of funds or accounts, request an entity chart and an AUM schedule by vehicle. Ask how parallel funds, feeders, co-investment entities, and managed accounts are treated. The schedule should show the amount counted for each entity and how duplicate exposure is removed when the same underlying asset appears through multiple vehicles.

• "What exact definition and measurement date does this AUM figure use?"
• "Which entities and accounts are included, and which are excluded?"
• "Does the number include unfunded commitments or borrowing?"
• "How do you prevent the same asset or investor capital being counted twice?"

Trace the Number to Records

Request the calculation schedule, most recent audited financial statements, capital account records, plus investor reporting for the same date or closest available period. For liquid positions, compare reported balances with custodian or brokerage records and the fund's books. For private holdings, request the investment schedule, ownership evidence, valuation date, and source used for each material value.

Ask the administrator or custodian, where one is involved, to confirm the records it maintains and whether its data supports the reported total. Confirm the service provider through contact details you source independently. A service provider's report may cover only particular accounts or processes, so record the scope and date instead of treating it as confirmation of every figure.

Reconcile liabilities and borrowing as well as assets. A gross asset figure can be materially different from net investor equity. Ask for cash, debt, accrued expenses, and other obligations in the same schedule. If the manager excludes an item from its AUM definition, document the reason and consider whether the figure is still suitable for the claim being made.

Explain Changes Across Periods

Build a simple bridge showing subscriptions and contributions, realized gains or losses, valuation changes, and transfers between vehicles. Request records that support each material movement. If the total rose sharply, ask whether the change came from new capital, a new mandate, or a change in valuation. If it fell, distinguish investor withdrawals from asset sales or write-downs.

Pay attention to stale dates and inconsistent definitions. A number from one reporting date should not be compared with another date as though the basis were unchanged. If the manager revised its calculation method, ask for both periods on a consistent basis when possible. For additional context, compare the AUM schedule with the fund's audited statements and the support for reported assets and valuations.

Document What the Figure Supports

Keep the schedule, source records, definitions, and any unresolved difference together. AUM is a measure with a defined basis, not a substitute for evidence of performance or the manager's own investment. If the number cannot be reconciled, or its explanation changes without supporting records, keep it unresolved in your review. Ask an independent accountant to assess technical differences, and talk with your attorney if access to records is limited by fund documents.

Checklist

• Record the AUM definition, date, and entities included.
• Obtain a vehicle-by-vehicle schedule and duplicate-counting method.
• Reconcile assets, liabilities, and borrowing to fund records.
• Compare liquid positions with custody records and private assets with ownership support.
• Build a bridge for changes between reporting periods.
• Keep unexplained differences open until records resolve them.

Go deeper: What records should support a manager's claimed investment results?.

Consistent and accurate reporting of taxes, returns, positions, and risk is something highly valued by investors yet not always delivered by fund managers.

Sources: Family Office Club investor due diligence framework, The Family Office Book. Informational only, not financial, legal or tax advice.