Exchange-coupling between soft-and hard-magnetic phases plays an important role in the engineering of novel magnetic materials. To achieve exchange coupling, a two-phase microstructure is necessary. This interface effect is further enhanced if both phase dimensions are reduced to the nanometer scale. At the same time, it is challenging to obtain large sample dimensions. In this study, powder blends and ball-milled powder blends of Fe-SmCo5 are consolidated and are deformed by high-pressure torsion (HPT), as this technique allows us to produce bulk magnetic materials of reasonable sizes. Additionally, the effect of severe deformation by ball-milling and severe plastic deformation by HPT on exchange coupling in Fe-SmCo5 composites is investigated. Due to the applied shear deformation, it is possible to obtain a texture in both phases, resulting in an anisotropic magnetic behavior and an improved magnetic performance.