Side letters supplement, amend or supersede the terms of a fund’s primary governing documents, often with respect to tax matters. Their length, complexity and volume has increased over the years, leading to increased time and resource pressures, especially for fund managers but also for investors. An evolution seeing managers willing to provide more fulsome tax information/assistance provisions in primary fund governance documents and utilising technology to help manage the side letter process should benefit both managers and investors. The authors anticipate such a trajectory over the next few years, especially at the upper end of the market.
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Side letters supplement, amend or supersede the terms of a fund’s primary governing documents, often with respect to tax matters. Their length, complexity and volume has increased over the years, leading to increased time and resource pressures, especially for fund managers but also for investors. An evolution seeing managers willing to provide more fulsome tax information/assistance provisions in primary fund governance documents and utilising technology to help manage the side letter process should benefit both managers and investors. The authors anticipate such a trajectory over the next few years, especially at the upper end of the market.
If you are not a subscriber, subscribe now to read this content.
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