Institutional Commingled Funds / Separate Accounts (SMAs)

Examples of Certain Managers: Ares, HPS, Golub, Churchill, Crescent

Liquidity: Illiquid; capital typically locked for 7–10 years.

Valuation: NAV-based with quarterly marks.

Access: Institutional investors (pensions, endowments, sovereign wealth funds, large family offices); minimums often $10M+.

Fees: Generally 1–1.5% management plus 15–20% carry; large investors may negotiate fee concessions.

Transparency: Moderate, with detailed quarterly reporting but no public filings.

Convexity: Moderate; ability to co-invest, structure bespoke financings, and access niche strategies may introduce asymmetric return potential.

Downside Protection: Strong alignment with GPs, bespoke covenants, and negotiated protections.

Pros: Access to differentiated transactions, co-investments, structural protections.

Cons: Illiquidity and J-curve effects; limited accessibility for smaller investors.