Luke Ellis and Mario Therrien – Best Practices in Alternatives (Capital Allocators, EP.158)

SBAI's Role

The Standards Board of Alternative Investments (SBAI) plays a crucial role in setting best practices for the alternative investment industry. Mario Therrien explains how the SBAI evolved from a small, Eurocentric group to a global consortium, emphasizing the importance of operational due diligence and leadership in promoting better behavior within the ecosystem 1. Luke Ellis highlights the initial challenges of bringing together managers and investors with diverse interests to agree on common standards 2.

One way for us to really onboard them on this is that we included in our operational due diligence, these standards.

--- Mario Therrien

This collaborative effort has led to a significant portion of managers enrolling in the SBAI, fostering a culture of transparency and integrity.

   

Industry Impact

The SBAI's standards have had a profound impact on the hedge fund industry, enhancing transparency and aligning values among managers and investors. Luke Ellis notes that increasing the number of participants in the standards reduces the time spent on operational due diligence and boosts confidence in managers 3. Mario Therrien adds that these standards foster a better alignment of values, which is crucial for the industry's integrity 4.

If you put all of these standards together around these values, this mindset, it brings a better alignment of values.

--- Mario Therrien

The SBAI continues to expand its reach, particularly in regions like APAC, where the asset management industry is rapidly growing.