Investors are increasingly seeking ways to retain control over their investments while delegating more decision-making authority to managers. This shift reflects changing preferences in asset management structures, particularly as institutional investors look for customized solutions that balance oversight with professional expertise. The trend signals evolving expectations around transparency and governance in alternative investments.

Separately managed accounts have been included in five-year fundraising totals that determine rankings for the PERE 100 and PERE 200 manager lists, provided they meet specific criteria. These vehicles must offer manager discretion to qualify, marking a significant departure from traditional separate account structures where clients maintained strict control over investment decisions. The qualification requirements have reshaped how managers approach these mandates.

Historically, separately managed accounts were characterized by client-imposed restrictions on manager authority, creating rigid investment parameters that limited flexibility. However, the private real estate industry has undergone substantial transformation, with definitions of both separate accounts and discretionary mandates evolving to meet market demands. This evolution reflects broader changes in investor sophistication and operational complexity.

The redefinition impacts how managers compete for assets and how investors evaluate their options. As industry standards shift, both parties must navigate new frameworks that blend traditional control mechanisms with modern discretionary approaches, fundamentally altering the relationship between investors and fund managers.