As the competition for investor allocations among private fund advisers remains competitive, the bargaining power in side letter negotiations has shifted in favor of the investor. In order to obtain a side letter in the first place, however, allocators must be prepared to make sizeable investments. These findings, which were identified in the Seward & Kissel (S&K) 2016/2017 Hedge Fund Side Letter Study, were discussed in a recent webinar hosted by the Hedge Fund Law Report and S&K. The webinar was moderated by William V. de Cordova, Editor-in-Chief of the Hedge Fund Law Report, and featured commentary on the side letter environment from Steve Nadel, lead author of the S&K side letter study. This article, the second in a two-part series, explores side letter trends identified in, and key takeaways from, the study, and analyzes whether President Trump’s stated pro-business stance will affect the terms offered by managers in side letters. The first article discussed the demographics of investment managers and investors that commonly enter into side letters, and key side letter terms. For additional insights from Nadel on side letters, see “HFLR and Seward & Kissel Webinar Explores Common Issues in Negotiating and Monitoring Side Letters” (Nov. 10, 2016).