As private fund managers seek new ways to generate alpha, the lines between private equity and hedge funds continue to blur. Managers are developing hybrid funds that offer investors the benefit of access to less liquid – but possibly more lucrative – investments, while retaining acceptable levels of investor liquidity. A panel at the Seward & Kissel 2020 Private Funds Forum examined common hybrid fund structures; liquidity, incentive allocations and other critical fund terms; and the key business, tax and operational issues that managers of hybrid funds may face. Patricia A. Poglinco, Seward & Kissel partner, moderated the discussion, which featured partners James C. Cofer, Joseph M. Morrissey and David R. Mullé. This article presents the speakers’ core insights. See “Sidley Panel Discusses Operational and Tax Challenges of Hybrid Funds” (May 23, 2019).