Separately Managed Account (SMA)
A bespoke investment mandate run for a single allocator with its own concentration limits, ESG screens and reporting cadence, separate from any commingled fund.
Separately Managed Account (SMA) explained
A separately managed account gives a single investor a dedicated portfolio managed to a bespoke mandate, rather than a share of a commingled fund. The investor gains control over guidelines, reporting and often fees. The manager gains a large relationship and a set of account specific constraints that must be applied consistently.
How it works in practice
- Mandate constraints are recorded as testable rules, not prose in an appendix.
- Reporting is produced to the account's format rather than the fund default.
- Allocation between the SMA and commingled vehicles follows a documented policy.
Common mistake
Accepting bespoke guidelines that no system enforces, so compliance depends on the portfolio manager remembering them.
Why it matters in private capital
Separately Managed Account (SMA) sits inside a chain of decisions that runs from sourcing through diligence, investment committee, portfolio monitoring and LP reporting. When each stage lives in a different tool, the evidence behind the decision is rebuilt at every handover. Keeping the concept on one record is what makes the fund able to explain, not just report, what it did.
How Reuben AI handles Separately Managed Account (SMA)
Reuben AI is one platform for the full private capital workflow. Deal intake and screening at /deal-flow-management, diligence and IC memos at /ic-memo-software, portfolio monitoring and LP reporting at /lp-reporting-software all read from the same record, so Separately Managed Account (SMA) does not need to be re-entered per tool. Pricing is at /pricing.
Frequently asked questions
What is Separately Managed Account (SMA)?
A bespoke investment mandate run for a single allocator with its own concentration limits, ESG screens and reporting cadence, separate from any commingled fund.
How does Separately Managed Account (SMA) work in practice?
A separately managed account gives a single investor a dedicated portfolio managed to a bespoke mandate, rather than a share of a commingled fund. The investor gains control over guidelines, reporting and often fees. The manager gains a large relationship and a set of account specific constraints that must be applied consistently.
What is the most common mistake with Separately Managed Account (SMA)?
Accepting bespoke guidelines that no system enforces, so compliance depends on the portfolio manager remembering them.
How does Reuben AI handle Separately Managed Account (SMA)?
Reuben AI keeps Separately Managed Account (SMA) on the same record as sourcing, diligence, investment committee, portfolio monitoring and LP reporting, so the underlying evidence does not have to be rebuilt for each workflow.
Related terms
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