Hannah Widlus & Patricia Gillman Published in Compensation & Benefits Review & HedgeWorld.com

Hannah and Patricia’s article, “Fund Investing: What to Ask For and How to Ask For It,” was published in the July/August issue of Compensation & Benefits Review, and on HedgeWorld.com on October 31. An increasing number of pension plans are investing in private equity and hedge funds, and the terms and provisions governing these investments often favor management. The authors explain that many institutional investors, like pension plans, are unaware that these terms are subject to negotiation. Through review of actual fund documents, their article offers examples of several terms that, with some revision, will promote a greater balance between the needs and interests of the fund sponsor or Manager, on the one hand, and those of the Investors or Members, on the other. In particular, it addresses the topics of reports to fund Members, the valuation of fund assets, the Manager’s discharge of its fiduciary duties, redemption or withdrawal procedures, the distribution of side letters and use of most favored nation provisions as well as specific ERISA matters. They also comment on difficulties that may arise as a result of the wording of a provision and, in certain cases, propose language for inclusion in a side letter between the Manager and the Investor.