Client redemptions and the need to manage their funds’ underlying portfolios of investments to allow for investor liquidity are issues that hedge fund managers routinely face, especially since the market events of 2008 and 2009.  Consequently, managers may find their abilities to pursue their investment strategies constrained by the need to keep portions of their funds’ assets in cash or may have to reduce otherwise attractive positions held by their funds in order to fund client redemptions.  In an effort to counteract such issues, managers are increasingly exploring permanent capital structures – vehicles that would provide a stable source of assets to the manager.  In a recent interview with the Hedge Fund Law Report, Jay Gould and Christopher Zochowski, partners at Winston & Strawn LLP and members of its Permanent Capital Solutions Group, shared detailed insight into types of permanent capital structures used in the hedge fund and private equity industries; the benefits of such structures; the circumstances under which certain permanent capital structures may be employed by managers; potential investor concerns with such structures; and terms and features of certain permanent capital structures.  For more on permanent capital structures, see “Ares Management IPO Raises Permanent Capital and Creates Liquidity for Founders’ Interests,” Hedge Fund Law Report, Vol. 7, No. 14 (Apr. 11, 2014); and “Prospectus for Suspended Ellington Financial IPO Details Mechanics of a Hedge Fund Permanent Capital Vehicle,” Hedge Fund Law Report, Vol. 2, No. 50 (Dec. 17, 2009).