System and method for managing multi-tenant chassis environment using virtual private chassis management controllers

An information handling system includes a chassis management controller (CMC) with a service processor, a processing system including a baseboard management controller (BMC) with a service processor, and a chassis management network coupled to the CMC and the BMC. The CMC instantiates a virtual CMC and the BMC instantiates a virtual BMC client. The virtual CMC is coupled to the virtual BMC client by a virtual management network of the chassis management network. The CMC is operable to manage the processing system via the BMC and the virtual CMC is operable to manage the processing system via the virtual BMC client.