While hedge fund investors are principally concerned with generating returns on their capital, they have become increasingly concerned with protection of their capital, which has led to a rise in the popularity of managed accounts.  In contrast to commingled funds, managed accounts generally offer investors enhanced liquidity, transparency and control over their assets.  However, with the desire for exposure to various investment strategies and fund managers as well as the onerous cost of establishing stand-alone managed accounts, many hedge fund investors are turning to managed account platforms, which offer a cost-effective method of gaining exposure to myriad managers and strategies.  Additionally, many hedge fund managers have realized that there are benefits to offering their services through managed account platforms over and above the additional capital they can raise from investors.  This is the second article in a two-part series designed to describe what managed account platforms are and to highlight the considerations that managers should evaluate in determining whether to offer their services through such platforms.  This article covers: the three principal advantages of managed accounts versus commingled funds; the seven chief advantages of managed account platforms over stand-alone managed accounts; considerations for hedge fund managers evaluating whether to offer their services through a managed account platform; how managers should consider which platforms to join; and seven key issues for managers to negotiate with platform sponsors before joining a platform.  The first article in the series surveyed managed account platforms, describing the various structures used for platforms, the evolution of platforms and the process for adding a manager to a platform.  See “Considerations for Hedge Fund Managers Looking to Join Managed Account Platforms (Part One of Two),” Hedge Fund Law Report, Vol. 5, No. 30 (Aug. 2, 2012).