Many hedge funds avoid regulation under the Employee Retirement Income Security Act of 1974, as amended, by maintaining participation by “benefit plan investors” below 25% of the value of each class of equity interest issued by the fund.  For such funds, it is important not to lose sight of the requirements for satisfying the 25% test, in light of an unprecedented number of redemption requests due to general turmoil in the financial markets.  In a guest article, Willkie Farr & Gallagher LLP provides timely and important reminders on how to remain in compliance with the 25% test, even in the presence of substantial redemptions by benefit plan investors and non-benefit plan investors.