We are pleased to share the 2025 Edition of the Seward & Kissel Hedge Fund Side Letter Study (“the Study”), examining side letters negotiated by our hedge fund manager clients during 2025. The Study is broken down into three parts: Managers, Investors and Terms. The three parts of the Study, when read together, provide valuable insights for managers into the negotiation of certain terms with investors in the current environment.

Key findings from the Study:

• The Study reflected a decrease in Mature Manager representation 
• The average RAUM of both Mature Managers and Newer Managers in the Study rose significantly from the prior study 
• Funds-of-funds continued to be the most common category of side letter investor, while the corporate pension category moved to the second largest investor category 
• There was a noticeable change in the number of side letters containing one or more key business terms 

To download a copy of the Study, please complete and submit the form by clicking here.