Each asset class in the private funds industry faces different risks related to parallel funds and conflicts of interest. Hedge funds, for example, are more likely than other asset classes to have parallel funds with similar investment strategies, based on the common decision to raise separate funds that take advantage of different exemptions from SEC registration requirements under the Investment Company Act of 1940. A recent case study published by the Standards Board for Alternative Investments (SBAI) addresses the conflicts of interest when managing parallel funds. This second article in a two-part series describes common scenarios in which conflicts of interest may arise between parallel funds and near-parallel funds in hedge funds and credit funds. The first article summarized the SBAI’s recently released standards and its suggestions for mitigating conflicts of interest while operating parallel funds, including how to determine when two funds are sufficiently “similar” for that purpose. See our two-part series on direct lending funds: “Structural Approaches to Address Liquidity Considerations and Ensure Regulatory Compliance” (May 28, 2020); and “Five Structures to Mitigate Tax Burdens for Various Investor Types” (Jun. 4, 2020).