Quick Answer

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Net worth is the value of everything you own minus everything you owe. AUM, or Assets Under Management, is the value of assets being managed by an investment manager, advisor, family office or other financial institution.

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For a family office, these numbers can be very different.

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A family might have a $1 billion net worth but only $500 million of AUM if the remaining wealth consists of operating businesses, personal real estate or other assets that aren't considered part of the managed investment portfolio.

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What Is Net Worth?

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The basic formula is:

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Net Worth = Total Assets − Total Liabilities

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For a family, assets might include:

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• Public investments
• Private equity
• Venture investments
• Operating companies
• Real estate
• Cash
• Art and collectibles
• Other personal assets

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Liabilities might include:

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• Mortgages
• Investment loans
• Lines of credit
• Other debt

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Example

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A family owns:

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$300M investment portfolio

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$400M operating company

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$150M real estate

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$50M other assets

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Total assets = $900M

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The family also has $100M of debt.

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Net Worth = $800M

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What Is AUM?

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AUM stands for Assets Under Management.

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It generally refers to the market value of assets being managed by an investment manager, advisor or institution.

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Exactly what counts as AUM can vary between organizations, so the methodology matters.

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Why AUM and Net Worth Are Different

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Consider a family with:

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Net Worth: $800M

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But only:

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Managed Investment Portfolio: $350M

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The family's AUM might therefore be around $350M even though its total net worth is much larger.

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This distinction matters particularly for entrepreneurial families whose largest asset may be an operating business.

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Absolutely. Here’s the final version with the existing MYFO article incorporated naturally.

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How MYFO Helps

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Traditional investment platforms often focus primarily on assets under management (AUM). MYFO is designed to go beyond AUM and give families visibility into their complete net worth, including assets that may never sit with an investment manager or custodian.

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MYFO supports the broad range of investments and assets that can make up a family's wealth, including:

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• Public investments
• Private equity and venture capital
• Private credit
• Operating businesses and direct investments
• Real estate
• Cash and banking
• Startups
• Insurance
• Digital assets
• Collectibles and personal assets
• Liabilities

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For a deeper look at what can be managed within the platform, see the asset classes MYFO was built to track.

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MYFO also tracks entities, ownership structures and individual ownership percentages, so assets can be attributed to the people, trusts, companies and other entities that actually own them. This gives the family office a consolidated view of family wealth while allowing each family member to understand what they personally own.

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That means MYFO can answer two different questions:

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How much investment capital are we managing?

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and

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What is the family actually worth?

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For a family office, both matter. AUM provides a view of the investment capital being managed. Net worth provides the broader picture of the family's total wealth. MYFO is designed to provide visibility into both.

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In One Sentence

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AUM = assets being managed.

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Net worth = everything you own minus everything you owe.

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