In June 2020, the SEC Division of Examinations (Examinations) issued a risk alert on its observations from examinations of private fund advisers. Examinations recently issued a follow-up risk alert (Risk Alert) that sets forth additional observations pertaining to failures to act in accordance with disclosures; misleading performance and marketing materials; inadequate investment due diligence and due diligence of service providers; and use of “hedge” clauses. This article details the key takeaways from the new Risk Alert, with commentary from Shivani Choudhary and Vivek Pingili, managing director and director, respectively, at ACA Group; Ellen Kaye Fleishhacker, partner at Arnold & Porter; Victoria Hogan, president of NorthPoint Compliance; and Michael J. Osnato, Jr., partner at Simpson Thacher. See our two-part coverage of Examinations’ 2020 risk alert on private funds: “Focus on Conflicts; Fees and Expenses; and MNPI” (Aug. 6, 2020); and “Key Takeaways for Managers” (Aug. 13, 2020).