Side Letters in the Covid-19 Environment
Allison Nolan highlights in HFM Global the renewed importance of side letters in 2020.
In these unprecedented times, the use of side letters has taken on a new level of importance. At Athena International Management, as independent directors serving on the boards of myriad different fund structures and strategies, we are seeing this play out in two different respects.
First, the side letters already in place require scrutiny to ensure compliance with their terms in the current situation. Second, and more importantly for capital raising, we are seeing an increased demand for side letters as a pre-requisite for substantial investments.
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