These accounts are often required by regulators and prime brokers to prevent the commingling of client and company funds. They provide allocators with improved oversight and enable tailored mandates, performance attribution, and reporting. Segregated structures also reduce counterparty risk — a crucial factor during market stress. Such accounts are particularly relevant during onboarding, mandate creation, and compliance audits. They allow for individualized tracking of exposure, drawdowns, and risk metrics like VaR or Sharpe Ratio, supporting fiduciary responsibility and operational integrity.