Side letters remain an important means by which private fund managers can offer appealing terms to prospective investors. Seward & Kissel (S&K) recently completed its second annual study of side letters entered into by its hedge fund manager clients. The Seward & Kissel 2016/2017 Hedge Fund Side Letter Study examines the types of investors that enter into side letters, the amounts they typically invest, the most common side letter terms and details about separately managed accounts. This article examines S&K’s findings, which provide fund managers with valuable insight into the terms requested by institutional investors as well as visibility into the activities of their peers. See “HFLR and Seward & Kissel Webinar Explores Common Issues in Negotiating and Monitoring Side Letters” (Nov. 10, 2016). For coverage of S&K’s 2015/2016 side letter study, see “Seward & Kissel Study Finds MFN Clauses and Reduced Fees Most Prevalent Terms in Side Letters” (Oct. 6, 2016). On Wednesday, October 18, 2017, at 10:00 a.m. EDT, Steve Nadel, lead author of the study and a partner in S&K’s investment management practice, will expand on the topics in this article – as well as other issues relating to side letters – in an upcoming webinar co-produced by the Hedge Fund Law Report and S&K. To register for the webinar, click here.