The Practising Law Institute’s (PLI) Hedge Fund Management 2013 program included a session entitled “Managing Hedge Funds in Crisis,” which was presented by Stephanie R. Breslow
, a partner at Schulte Roth & Zabel LLP
, co-head of the firm’s Investment Management Group and a member of its Executive Committee. Breslow discussed the various tools that managers have at their disposal to address crises impacting their funds, such as a run on liquidity, and how those tools have changed over time, particularly after the 2008 financial crisis. This article summarizes the key takeaways from her presentation. For a general discussion of post-crisis liquidity and crisis management tools, see “Structuring, Valuation, Fee Calculation and Other Legal and Accounting Considerations in Connection with Hedge Fund General Redemption Provisions, Lock-Up Periods, Side Pockets, Gates, Redemption Suspensions and Special Purpose Vehicles
,” Hedge Fund Law Report, Vol. 3, No. 43 (Nov. 5, 2010); “What Are Hybrid Gates, and Should You Consider Them When Launching Your Next Hedge Fund?
,” Hedge Fund Law Report, Vol. 4, No. 6 (Feb. 18, 2011); and “IOSCO Report Discusses Appropriate Use and Disclosure of Hedge Fund Redemption Suspensions, Gates and Side Pockets
,” Hedge Fund Law Report, Vol. 4, No. 10 (Mar. 18, 2011).