Many of the world’s biggest investors are increasingly turning to bespoke arrangements that cater to their likes and dislikes to grab a bigger slice of the $1.7 trillion private credit market. Lenders are finding new ways to court sovereign wealth funds and other big investors through “fund-of-one” positions known as single-managed accounts. The arrangements often offer reduced fees, let investors cherry pick among their favorite regions and industries, dictate leverage or even decide how long they want to be locked in for. SMAs aren’t new and big institutional investors have been around private credit and alternative assets for years, becoming the second-largest investors in alternatives by percentage allocation. John Anderson, partner in the Private Investment Funds team, says to Bloomberg that he increasingly sees direct lending funds raise money through “a constellation of parallel funds, feeder funds, co-invest vehicles and SMAs making up the overall program.