Wells Fargo’s $2bn SMA sale highlights an untapped part of the market
Separately managed accounts have unique characteristics that make secondaries trades trickier than those involving commingled funds.
While the majority of LP secondaries sales involve commingled funds, investors in separately managed accounts can sell their interests too, though there can be unique challenges when dealing with these vehicles.
A recent example of an SMA secondaries sale occurred last week, with 富国银行 , one of the US’s largest banks by assets, saying it sold $2 billion worth of interests in Norwest Equity Partners (NEP) and NMP Capital funds to a consortium that included AlpInvest Partners , Atalaya Capital Management , Lexington Partners and Pantheon .
Wells Fargo said it was...
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