Side letters are a recurring feature of the alternative investment funds landscape in Asia and indeed globally. Large institutional investors, particularly if providing seed money, sovereign wealth funds, and investors related to government bodies will all typically require preferred terms from fund managers.  However, agreeing to enter into side letters can give rise to a number of legal and practical issues, which can cause managers more trouble than the side letter may be worth.  Moreover, regulators have traditionally taken a dim view of side letters with “selective” investors. It is for this reason that many managers have a love/hate relationship with side letters.  This course will provide a practical and in-depth look at the typical terms of side letters, common issues that arise, and some suggestions as to how to resolve the problems associated with these documents from an offshore perspective.

In privately offered funds, side letters with investors continue to be a common phenomenon.  Even though these seemingly simple agreements are more and more common, and in many cases are a condition to an investor committing to the fund, side letters can give rise to significant practical and legal issues for funds, their ,operators and their legal advisers.

It is for this reason that many managers have a love/hate relationship with side letters.  This course will provide a practical look at the side letters, common issues that arise with them, and some suggestions as to how to resolve the problems associated with these documents from an offshore perspective.