Seward & Kissel Releases Fall 2025 SMA Snapshot Report: Key Shifts in Manager Tenure, Strategy, and Asset Growth

Seward & Kissel LLP’s Investment Management Group is pleased to announce the publication of its fifth annual SMA Snapshot Report, providing a comprehensive look at the evolving landscape of institutional separately managed accounts over the past year.

“Amid today’s economic and capital-raising environment, we have witnessed significant growth in SMA interest among limited partners across asset classes—particularly with emerging managers, but also among established firms,” said Kevin Neubauer, co-head of Seward & Kissel’s Investment Management Group.

The report found the proportion of SMAs managed by firms founded more than five years ago has dropped sharply to just 27%, a significant decline from nearly 86% in 2024, reflecting a dynamic shift in market preferences.

“The sharp drop in SMAs run by managers founded more than five years ago suggests allocators are increasingly comfortable backing newer, high‑pedigree launches—especially where mandates can be tightly tailored to institutional objectives,” said Seward & Kissel partner Steve Nadel, lead author of the report.

Additional Key Findings:

• Institutions Remain Dominant Allocators: Institutions continue to lead as the primary investors in SMAs, accounting for 90% of allocations. Their ability to deploy resources for sourcing and diligence remains a key driver of this dominance.
• Strategic Evolution Toward Bespoke Solutions: The number of SMAs employing equity-focused strategies fell by 50% in 2025, while there was a notable increase in SMAs adopting non-equity and non-credit strategies. This shift highlights investor interest in more customized, flexible mandates that address specific market opportunities and risk profiles.
• Asset Growth Among Mature Managers: The average SMA size for mature managers rose by $20 million year-over-year, reaching $95 million in 2025. This growth underscores the continued confidence in experienced managers and the increasing scale of institutional allocations.

Download the full Fall 2025 SMA Snapshot Report.

About Seward & Kissel LLP

Seward & Kissel LLP, founded in 1890, is a leading U.S. law firm with offices in New York City and Washington, D.C., with particular expertise in the financial services, investment management, banking and shipping industries. The Firm is well known for its representation of investment advisers and related investment funds, broker-dealers, major commercial banks, institutional investors and transportation companies (particularly in the shipping area). Its practices primarily focus on corporate, M&A, securities, litigation (including white collar), restructuring/bankruptcy, real estate, regulatory, tax, employment and ERISA for clients seeking legal expertise in these areas.

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