Separately Managed Accounts (SMA)
Separately Managed Accounts in real estate provide tailored, investor-specific portfolios that balance professional management with full ownership, control, and transparency.
Introduction
For investors who prefer a personalized approach to real estate investing rather than pooling money into funds or REITs, Separately Managed Accounts, or SMAs, present a compelling option. These structures are designed as dedicated investment accounts managed exclusively for one investor or a single entity. Unlike collective vehicles, where strategies are predefined and decisions are shared, SMAs allow the investor to directly shape the portfolio’s direction, risk profile, and objectives. They are most often sought by institutional players and high-net-worth individuals who want the expertise of professional management without sacrificing control and customisation.
What is a Separately Managed Account (SMA)?
An SMA is essentially a portfolio of assets curated and managed by a professional firm, but set up for the benefit of one client alone. In the real estate context, the investor retains direct ownership of the properties, whether individually or through a dedicated holding structure. The manager’s role is to execute the mandate, sourcing, acquiring, and overseeing assets in accordance with the client’s chosen strategy. This means that every aspect of the portfolio, from the types of assets acquired to the geographic focus and risk-return balance, reflects the investor’s own objectives.
Consider, for instance, a sovereign wealth fund that instructs a manager to build a portfolio of logistics properties across Southeast Asia. The purpose might be to generate steady income, diversify away from other holdings, and achieve long-term appreciation. The manager then carries out acquisitions, oversees operations, and reports performance back to the investor, but the portfolio remains uniquely tailored to that investor’s vision.
How SMAs Differ from Pooled Funds
While both SMAs and pooled funds provide access to real estate, the structures diverge in significant ways. In a pooled fund, investors buy into the fund itself, which owns the assets. Decisions are made by the fund manager, and the strategy applies equally to all participants. With SMAs, however, the investor owns the assets directly and has the ability to approve or reject acquisitions and disposals. This leads to a far higher degree of control and transparency. Customisation is another hallmark: whereas pooled funds operate under a predefined strategy, SMAs are fully tailored to the investor’s requirements. Reporting also differs, with SMAs providing asset-level transparency, while pooled funds typically deliver summaries at the fund level. Liquidity can also be more flexible in SMAs, as exit is determined by asset sales rather than the fund’s lock-in period.
Benefits of SMAs
The greatest appeal of SMAs lies in their ability to deliver custom strategies. Investors can align their portfolio precisely with their preferences for sector, geography, and expected returns. This is paired with transparency and control, as investors are not only able to review detailed asset-level data but can also participate directly in key decisions. Direct ownership further brings advantages such as potential tax efficiencies, tailored financing arrangements, and flexibility in determining when and how to exit investments. At the same time, the management is institutional in standard: investors benefit from the expertise of professional teams who handle acquisitions, asset operations, and performance reporting.
Potential Drawbacks
Despite their advantages, SMAs are not without challenges. One of the most obvious barriers is the high minimum capital requirement, which often runs into the tens or hundreds of millions. This makes SMAs largely the preserve of sovereign wealth funds, pension funds, insurance companies, and ultra-high-net-worth families. In addition, a single SMA may deliver less diversification than a pooled fund unless it is structured deliberately to span multiple asset classes and geographies. The operational side can also be complex: direct ownership brings additional layers of legal, tax, and compliance management that must be addressed. To mitigate these risks, some investors choose to operate several SMAs simultaneously, each with its own mandate, in order to diversify across different strategies and markets.
How RealVantage Integrates SMA Solutions
At RealVantage, most individual investors participate through deal-by-deal co-investments. However, for larger institutional and high-net-worth investors, SMA structures are also offered. These accounts are designed to deliver bespoke deal sourcing aligned with predefined criteria, backed by a dedicated management team and institutional-grade due diligence. By ring-fencing liabilities and maintaining transparent ownership structures, RealVantage ensures that investors enjoy both the security of professional oversight and the flexibility of a personalised strategy. In this way, SMAs become a vehicle that blends exclusivity with professional execution, helping investors achieve precise portfolio objectives.
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About RealVantage
RealVantage (operating as RV SG Pte. Ltd. in Singapore) is a leading real estate co-investment platform, licensed and regulated by the Monetary Authority of Singapore (MAS), that allows our investors to diversify across markets, overseas properties, sectors and investment strategies.
The RealVantage team comprises professionals across real estate, corporate finance, technology, venture capital, and startup growth. The platform combines institutional deal sourcing with structured underwriting and portfolio diversification capabilities. The team is led by a distinguished Board of Advisors and advisory committee who provide cross-functional and multi-disciplinary expertise to the RealVantage team.
The company's philosophy, core values, and technological edge help clients build a diversified and high-performing real estate investment portfolio.
Get in touch with RealVantage today to see how they can help you in your real estate investment journey.
Disclaimer: The information and/or documents contained in this article do not constitute financial advice and are meant for educational purposes. Please consult your financial advisor, accountant, and/or attorney before proceeding with any financial/real estate investments.