Separately managed accounts have become a key source of capital for private market managers, and lenders are adapting underwriting techniques and strategies to adjust to this growing channel
In today’s challenging fundraising market, separately managed accounts (SMAs) are providing managers with a crucial source of capital. In turn, lenders are evolving to support this fast-growing market.
Although it is difficult to track the formation of SMAs (bespoke portfolios of assets curated for sovereign, institutional, or high-net worth clients) given that these arrangements are bilateral and private, industry watchers broadly acknowledge that more investors are establishing SMAs to leverage long-standing relationships with managers and to increase their exposure to areas like co-investment, private credit and secondaries.
At a challenging point in the fundraising cycle for flagship…
