SBAI Podcast

In this episode, SBAI’s Brian Digney is joined by William Yonge, Partner at Morgan Lewis. With more than 25 years’ experience in UK and European financial services law and securities regulation—including time working in-house for UK regulators—William returns to examine the evolving regulatory landscape for alternative investment managers, including UK AIFMD reform and growing UK–EU divergence.The conversation also explores increasing regulatory scrutiny of private markets, particularly around valuation, liquidity and conflicts of interest. William and Brian consider the expansion of private assets into private wealth and retail channels, and how regulators can balance growth and competitiveness with effective investor protection.Key takeaways include:• The FCA’s proposed UK AIFMD reforms would introduce a more proportionate, three-tier regime for UK managers of alternative funds based on the net asset value of their funds under management.• The UK can respond to market developments more quickly than the EU, but divergence may create additional disclosure and compliance burdens for cross-border managers.• The delegation model and national private placement regime remain important to the UK’s position as an international centre for investment management.• Growth and innovation in private equity and private credit are increasing regulatory attention on valuation, liquidity, leverage, governance, conflicts and data.• Wider access to private markets requires suitable product design, transparent disclosure, strong distribution controls and meaningful investor protection.Whether you are an alternative investment manager, institutional investor, legal or compliance professional, or private markets participant, this episode offers a clear overview of the regulatory changes shaping the UK and European alternatives industry.About the SBAI:We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership and knowledge. We do this by setting Standards, providing industry guidance and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$11 trillion in assets.For more information, visit https://www.sbai.org/.  For more information visit https://www.sbai.org/

Ashley Lester, Chief Research & Development Officer at MSCI, joins Brian Digney to explore one of the biggest challenges facing private markets today: data. Drawing on a career spanning central banking, academia and senior investment roles at Morgan Stanley, Schroders and MSCI, Ashley explains why private market investing depends on better information, greater transparency and more consistent reporting.The conversation examines how investors evaluate private equity and private credit when valuations are subjective, disclosure is inconsistent and liquidity is limited. Ashley discusses MSCI's unique private markets data set, what decades of research reveal about long-term private equity returns, and why academic research is playing an increasingly important role in shaping industry best practice.Brian and Ashley also look ahead to the future of private markets, discussing valuation standards, private credit risks, the growing importance of wealth investors, and how better data and analytics could transform investment decision-making over the next decade. It's an insightful discussion on the evolution of private markets and why transparency is becoming one of the industry's most valuable assets.Key takeaways include:Private markets remain significantly less transparent than public markets, making high-quality cash-flow, valuation and underlying portfolio data critical to informed investment decisions.MSCI research finds that private equity has generated meaningful long-term excess returns over public markets, although some of that performance can be explained by factors such as leverage, size and industry exposure.Valuation and liquidity are becoming increasingly important as private markets expand beyond traditional institutional investors into wealth and defined contribution portfolios.Private credit has produced attractive historical returns, but limited disclosure and the absence of a full credit-cycle test remain important areas of uncertainty for investors.Greater standardisation of data, combined with analytics that bring public and private assets together on a like-for-like basis, could significantly reshape private market portfolio management over the next decade.Whether you are an institutional investor, asset manager, private markets professional or investment consultant, this episode offers a detailed examination of how data, transparency and analytics are changing the way investors understand private equity, private credit and the wider private markets landscape.About the SBAI:We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership and knowledge. We do this by setting Standards, providing industry guidance and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$11 trillion in assets.For more information, visit www.sbai.org.  For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Josh Kestler, President of Innocap, to explore one of the most significant structural trends in alternative investments: the rapid growth of separately managed accounts (SMAs). Drawing on more than a decade of experience building institutional managed account platforms, Josh explains why SMAs have evolved from a niche institutional solution into a mainstream investment structure reshaping how allocators access hedge fund strategies. Josh begins by explaining what SMAs are, how they differ from traditional commingled funds and long-only managed accounts, and why institutional investors increasingly favour dedicated managed account structures. He outlines the evolution of the market following the Global Financial Crisis, through increasing demand for customisation, to today’s focus on capital efficiency and operational alpha. The discussion explores the key drivers behind SMA adoption. Josh explains how greater transparency, enhanced governance, customised investment guidelines and improved operational oversight allow institutional investors to tailor portfolios to their specific objectives while maintaining strong risk controls. He also discusses how advances in technology and specialist managed account platforms have made these structures increasingly accessible for the world’s largest allocators. Capital efficiency forms a major part of the conversation. Josh explains concepts such as notional funding, cross-margining and operational alpha, demonstrating how sophisticated platform structures can optimise collateral management and free up capital without altering investment strategies. He also discusses the operational infrastructure required to support these arrangements and the role platform providers play in overseeing risk, collateral and regulatory responsibilities. The episode also examines how SMAs benefit investment managers. Josh addresses common misconceptions around transparency, operational complexity and data sharing, arguing that managed accounts can strengthen long-term partnerships between allocators and managers while providing emerging managers with institutional infrastructure and greater access to capital. Finally, Josh shares his perspective on where the industry is heading. He discusses continued global adoption of SMAs, increasing demand for real-time data and customisation, and why he believes managed accounts will continue transforming institutional investment over the coming years. Key takeaways include: • Separately managed accounts provide institutional investors with greater control, transparency and portfolio customisation than traditional commingled funds. • Capital efficiency through notional funding and cross-margining is becoming an increasingly important driver of SMA adoption. • Managed account platforms deliver operational oversight, risk monitoring and regulatory infrastructure that support both investors and managers. • Emerging managers can benefit from institutional operational support while building long-term relationships with sophisticated allocators. • The continued growth of SMAs is likely to reshape how institutional investors access alternative investment strategies worldwide. Whether you are an institutional investor, asset manager, hedge fund professional or investment consultant, this episode offers valuable insights into one of the fastest-growing developments in alternative investment structures and what it means for the future of institutional portfolio construction. About the SBAI: We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership and knowledge. We do this by setting Standards, providing industry guidance and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$11 trillion in assets. For more information, visit www.sbai.org. For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Stuart White, Board Director at the National Employment Savings Trust (NEST), Executive Director – Business Development at Impax Asset Management, and former CEO of HSBC Global Asset Management (UK). Drawing on more than 25 years in investment management and pensions, Stuart reflects on governance, long-term asset allocation and the evolving role of diversity in financial performance.    Stuart begins by outlining what effective governance looks like in large, complex organisations. He discusses the importance of clear delineation between executive and non-executive roles, the value of continuous improvement at board level, and why cognitive diversity is central to better long-term decision-making. The conversation then turns to NEST’s public service mandate. As a trust-based workplace pension scheme serving millions of UK members, NEST must balance fiduciary duty with broader policy objectives. Stuart explains how financial outcomes remain paramount, while long-term investment in UK assets, infrastructure and sustainable themes can align with member interests rather than conflict with them.  Private markets form a significant part of the discussion. Stuart shares NEST’s perspective on allocating to alternatives, the importance of long-term partnerships, transparency in valuation and reporting, and maintaining cost discipline for members. He reflects on liquidity risk, the retailisation of private assets and the need for strong guardrails as private market exposure expands across default pension strategies. Drawing on his experience at HSBC through multiple market cycles, Stuart offers a measured assessment of current risks, including elevated valuations, liquidity considerations and innovation in product structures. He emphasises that democratising private markets can be positive when supported by robust governance and client understanding. The episode also explores diversity, equity and inclusion from an investment and fiduciary perspective. Stuart discusses his work with the Diversity Project and the Asset Owner Diversity Charter, highlighting the growing evidence linking cognitive diversity to stronger financial outcomes. He argues that diversity of thought, supported by effective leadership, is fundamental to good governance and long-term performance. Finally, Stuart offers practical advice for senior professionals aspiring to board roles. He encourages building governance experience early, seeking diverse responsibilities, and aligning career choices with long-term purpose and values. Key takeaways include: • Effective governance depends on clear role definition, strong leadership and cognitive diversity at board level. • NEST balances fiduciary duty with long-term investment in the UK economy and sustainable themes without compromising returns. • Private market allocations require transparency, disciplined cost management and robust risk frameworks. • The democratisation of private assets must be accompanied by strong regulatory guardrails and investor understanding. • Cognitive diversity is increasingly supported by evidence as a driver of better financial outcomes and long-term value creation. Whether you are a pension trustee, asset manager, board member or investment professional, this episode provides practical insights into governance, alternative investments and the evolving standards shaping long-term capital stewardship. About the SBAI: We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership and knowledge. We do this by setting Standards, providing industry guidance and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets. For more information, visit https://www.sbai.org/ For more information visit https://www.sbai.org/

In this bonus episode, SBAI’s Brian Digney is joined by Jonathan Dimson, Senior Partner at McKinsey & Company in London, for a focused discussion on how ageing populations are reshaping public spending priorities across Europe. Jonathan explains why demographic change is a slow-moving but profound challenge, with Europe shifting from a model where around two working-age people support every one non-working person, towards a much more even balance. The conversation explores the implications for pensions, healthcare and long-term fiscal sustainability, particularly in pay-as-you-go systems where today’s workers fund today’s retirees. The episode also looks at the broader spending pressures facing governments, including infrastructure renewal, defence, technology and welfare. Jonathan reflects on the limits of birth incentives, the potential role of automation and robotics, and the need for European economies to remain attractive, productive and profitable places to invest and build businesses. Key takeaways include: • Ageing populations will place growing pressure on pensions, healthcare and public finances. • Pay-as-you-go pension systems face particular challenges as the worker-to-retiree ratio declines. • Birth incentives have had limited success in reversing demographic trends. • Innovation, automation and productivity gains may help offset some labour market pressures. • Governments face difficult trade-offs between welfare, infrastructure, defence, technology and fiscal sustainability. About the SBAI We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets. For more information, visit https://www.sbai.org/ For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Jonathan Dimson, Senior Partner at McKinsey & Company in London, where he leads the firm’s defence work across Europe. Jonathan explores the rapidly evolving European defence landscape, from the shifting tone at the Munich Security Conference to the growing gap between the clarity of US strategy and the more cautious, less coordinated approach across Europe. Against a backdrop of conflict in Ukraine and the Middle East, defence preparedness is becoming an increasingly urgent priority for governments and investors alike. Jonathan breaks down what “readiness” really means in practice, moving beyond headline spending to a full defence system – from funding and procurement through to production, operational capability and continuous innovation. Drawing on lessons from Ukraine, he highlights how the economics of warfare are changing, with lower-cost, software-driven technologies such as drones reshaping traditional models and accelerating the pace of innovation. The conversation also examines the scale of capital required to support this shift, from venture investment through to infrastructure, industrial capacity and resilience. Jonathan outlines the growing importance of “resilience spending” and the opportunities this creates for institutional investors, while also addressing structural challenges across Europe including fragmentation, procurement speed and workforce constraints. Looking ahead, he argues that success will depend on Europe’s ability to balance long-term peace with credible deterrence and defence capability. Key takeaways include: • Defence readiness is a system-wide challenge, requiring alignment across funding, procurement, production, operations and innovation. • The economics of warfare are shifting, with lower-cost, software-driven technologies playing an increasingly central role. • Private capital has a significant role to play beyond venture, particularly in infrastructure, industrial capacity and resilience. • Europe faces structural challenges including fragmentation, slow procurement and workforce constraints. • Public debate on defence spending trade-offs remains underdeveloped in many countries. • Long-term success will depend on balancing deterrence with efforts to secure lasting peace. About the SBAI: We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership and knowledge. We do this by setting Standards, providing industry guidance and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets. For more information, visit https://www.sbai.org/ For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Richard Tomlinson, Chief Investment Officer of Local Pensions Partnership Investments (LPPI), to discuss what it takes to build a modern institutional investment organisation in an increasingly complex global environment.Richard reflects on the creation and evolution of LPPI as part of the UK’s local government pension pooling initiative, sharing lessons from scaling an investment platform from the ground up while maintaining strong governance and fiduciary discipline. He discusses the balance between internal capability and external partnerships, the role of consultants, and why a clear sense of purpose and stakeholder alignment is critical when managing public capital.The conversation also explores how long-term asset allocation is evolving in response to structural shifts in inflation, interest rates and geopolitics. Richard outlines LPPI’s approach to diversification, real assets and sovereign risk, as well as the challenges facing traditional portfolio assumptions such as the 60/40 model. He offers a measured perspective on themes including AI, US exceptionalism, domestic infrastructure investment and the future role of currencies in institutional portfolios.The episode concludes with a wide-ranging discussion on organisational culture, hybrid working, talent development and the cautious but pragmatic use of AI within an investment organisation.Key takeaways include:• Building institutional scale is an incremental process grounded in governance, clarity of mandate and long-term alignment with stakeholders.• Internalisation should be driven by genuine comparative advantage rather than size alone, with strategic partnerships playing a central role.• Traditional diversification assumptions are under pressure as inflation, interest rates and correlations shift.• Real assets can play a meaningful role in protecting long-term purchasing power in a higher-inflation world.• While technologies such as AI and digital assets are likely to reshape markets, humility and caution remain essential when assessing long-term outcomes.Whether you are an asset owner navigating governance reform or an investment professional thinking about long-term portfolio resilience, this episode offers a thoughtful and practical perspective on stewardship, scale and decision-making in public pension investing.About the SBAI:We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.For more information, visit https://www.sbai.org/ For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Leda Braga, Chief Executive Officer of Systematica Investments, and Ben Dixon, the firm’s General Counsel and Chief Compliance Officer. Together, they explore one of the least understood but most consequential parts of operational risk: how investment managers define, manage and report trade errors.Leda reflects on the evolution of transparency expectations since the early 2000s, the institutionalisation of the hedge fund industry, and the growing weight of regulatory disclosure. She also discusses the role of voluntary standards, how the SBAI creates a unique forum for allocators and managers, and why cultural alignment matters as much as process.Ben explains how Systematica approaches error identification, near-misses and operational robustness through a no-blame, firm-wide culture. He highlights how inconsistent definitions across the industry make comparisons difficult, why many managers fear admitting errors, and how clearer frameworks can support better outcomes for both regulators and investors.Key takeaways include:• Transparency around errors varies widely, and without consistent definitions, data between managers is often not comparable.• A no-blame culture supported by senior leadership helps firms identify and learn from mistakes before they escalate.• Excessive fear of liability or regulatory consequences can discourage managers from open disclosure, even when doing so would improve investor trust.• Voluntary standards, such as those developed by the SBAI, can help bridge gaps between allocators and managers by clarifying expectations and reducing conflicts of interest.• Balancing who bears the cost of trade errors requires careful consideration of materiality thresholds, observation periods and insurance.Whether you are an allocator assessing operational resilience or a manager designing internal controls, this episode offers a detailed and grounded discussion of the culture and systems behind responsible investment management.About the SBAI:We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.For more information, visit https://www.sbai.org/ For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Chantal Berendsen, Partner and Senior Hedge Fund IDD Analyst at Albourne Partners, and Richard Lowther Managing Partner and Co-Founder of Integral ILS, to explore the fascinating world of insurance-linked securities (ILS).Chantal and Richard explain how ILS offers diversification benefits due to its low correlation with traditional capital markets, while also exploring the complexities, opacity, and relationship-driven nature of this niche asset class. They discuss the structure of the insurance and reinsurance ecosystem, the different segments of the ILS market, from catastrophe bonds to quota shares and retrocession, and the evolution of market transparency since major events like the 2017 hurricane season.Listeners will gain practical insights into:How institutional investors can access and benefit from ILS strategiesThe mechanics of catastrophe bonds and other ILS productsKey challenges such as trapped capital, loss creep, and valuation transparencyThe growing importance of climate risk, modelling accuracy, and emerging perils like cyber riskWhat investors and consultants look for in ILS managers, from governance and operational strength to transparency and due diligence.Ultimately, the discussion highlights how trust, transparency, and long-term perspective are essential to success in the insurance-linked investment space. Whether you’re an allocator exploring uncorrelated strategies or an asset manager seeking to understand this unique corner of the alternatives universe, this episode offers a clear, grounded introduction to ILS and how it fits within a modern investment portfolio. About the SBAI:We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11 trillion in assets.For more information, visit https://www.sbai.org/ For more information visit https://www.sbai.org/

In this episode, SBAI’s Brian Digney is joined by Ben Gedye and Josh Madeiros from K2 Credit to explore the rising role of portfolio credit insurance as a risk management tool in private credit and debt markets. As traditional banks scale back lending, private asset managers are stepping in — and with that shift comes the need for sophisticated ways to hedge credit risk.Ben and Josh explain how non-payment insurance works, its historical roots, and its evolving use beyond banks — highlighting how managers can leverage it to improve risk-adjusted returns, facilitate leverage, and reduce concentration risk. The conversation covers structural nuances, underwriting processes, common mistakes, claim settlement mechanics, and how insurers evaluate not just the portfolio, but the asset manager’s governance and transparency.Key takeaways include: Portfolio credit insurance is a tailored de-risking strategy, not just a traditional insurance product.Successful implementation hinges on strategic, portfolio-wide application, not opportunistic single-risk coverage.Asset managers and investors must engage with specialist brokers and underwriters, ensuring products are fit for purpose.With today's soft insurance market and increased capacity, now may be a prime time for managers to explore coverage. Whether you’re a fund manager looking to enhance resilience or an investor assessing risk frameworks, this episode provides a comprehensive, jargon-free guide to a powerful but often overlooked financial tool.About the SBAI: We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11tn in assets. For more information visit https://www.sbai.org/  For more information visit https://www.sbai.org/