As the liquid alternatives (or alternative mutual fund) space has expanded significantly in recent years, offerings of alternative mutual funds by hedge fund managers have similarly increased. Accordingly, as more hedge fund managers look to launch alternative mutual funds, it is important for them to understand the common structures under the Investment Company Act of 1940 (’40 Act). Additionally, as regulators are interested in ensuring alternative mutual funds meet regulatory requirements and managers of those funds operate within the confines of applicable regulations, it is imperative that managers launching alternative mutual funds understand those regulatory concerns. See “Alternative Mutual Fund Managers Have Two Custody Rules to Worry About,” Hedge Fund Law Report, Vol. 8, No. 8 (Feb. 26, 2015). These topics were among those discussed at the recent Liquid Alts 2015 conference hosted by Financial Research Associates, LLC. This article, the second in a three-part series, focuses on the panel discussions of ’40 Act fund structures and regulatory concerns with liquid alternative funds. The first article discussed the keys to successfully launching and operating an alternative mutual fund. The third article will review issues investors should consider while conducting due diligence on an alternative mutual fund. For more on alternative mutual funds, see “Regulatory and Practitioner Perspectives on Alternative Mutual Fund Compliance Risk,” Hedge Fund Law Report, Vol. 8, No. 8 (Feb. 26, 2015).