Our 2022 hedge fund side letter survey

We have recently carried out a comprehensive survey of side letters entered in to by hedge funds and/or their managers on which the London office of the Simmons & Simmons hedge fund practice has advised during the twelve months ended 30 June 2022.

In our survey, we measured the prevalence of five common side letter provisions – most favoured nation (MFN), transparency/risk reporting, enhanced liquidity, fee discounts and capacity. We also tracked certain other terms as well as categorised the investors requiring side letters and the regions in which they are based.

This is the first year we have published this information which is part of our overall strategy to share our market leading insights on key topics affecting the hedge fund sector.