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The new SEC rules limit preferential treatment in Side Letters (Section 8.3). Historically, institutional LPs negotiated preferential terms via Side Letters, so I want to know if they’re now pushing back or finding workarounds. I also want to understand how biotech/health funds are handling regulatory carve-outs that LPs previously included in Side Letters.


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Side letters are still common and allowed by the SEC rules. Ethical managers typically disclose these side-letters because the terms can often affect the performance of the fund.

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