Hedge Funds Nuts & Bolts: We Need to Talk About Side Letters (Common Terms, Themes and Practical Considerations)

Side letters are an increasingly common way of formalising negotiated arrangements between a private fund and an investor. Although used more widely in the closed-ended fund context (given the limited withdrawal rights associated with such funds, the typically higher level of negotiation and greater structural complexity), they are also a feature of open-ended funds – for instance where there is a seed or cornerstone investor investing significant capital, or an investor subject to specific tax or regulatory regimes that require bespoke terms.

In this month’s webinar, members of Dechert’s financial services and investment management group provide an overview of common side letter terms and themes, regulatory context and practical points for managers navigating the restrictions and obligations of multiple side letters.

The topics covered include:

• Common terms
• Themes
• Regulatory contexts
• Practical considerations