This is the third and final article in our series on investment opt-out rights in the hedge fund context.  This article continues the discussion of risks associated with opt-out rights, focusing on regulatory and other risks, and concludes with a discussion of seven best practices for minimizing the risks associated with such rights.  The first article in the series explored eight reasons why investors may demand and managers may grant opt-out rights.  See “Investment Opt-Out Rights for Hedge Fund Investors: Rationales, Mechanics, Regulatory Risks and Operational Challenges (Part One of Three),” Hedge Fund Law Report, Vol. 6, No. 43 (Nov. 8, 2013).  And the second installment addressed the structure and exercise of opt-out rights, as well as regulatory risks associated with offering such rights.  See “Investment Opt-Out Rights for Hedge Fund Investors: Rationales, Mechanics, Regulatory Risks and Operational Challenges (Part Two of Three),” Hedge Fund Law Report, Vol. 6, No. 44 (Nov. 14, 2013).