Numerous changes have affected the regulatory arena – including the transfer of power to the new Presidential administration and changeover of many high-level staff at the SEC – and fund managers must anticipate the potential effects of those developments on their businesses. Specifically, fund managers must ensure that their legal and compliance staffs are adequately prepared for increased regulatory scrutiny, particularly given recent risk alerts issued by the SEC Division of Examinations – formerly the Office of Compliance Inspections and Examinations, or OCIE. To examine those issues and their impact on the market for legal and compliance staff, the Hedge Fund Law Report recently spoke with David Claypoole, founder of Claypoole Executive Search. This article, the first in a two-part series, sets forth his insights on the factors driving increased demand for in-house staff; the anticipated effects of the Biden administration on the private funds industry; the likelihood of increased regulatory scrutiny of fund managers; and the need to ensure that legal and compliance staff has adequate resources. The second article will explore recent changes to the SEC and their potential impact on the industry; the regulator’s and industry’s performance during the coronavirus pandemic; and trends in compensation of and demand for legal and compliance personnel. For further commentary from Claypoole, see our two-part series: “How Have Industry Developments Affected the Value of Legal and Compliance Staff?” (Feb. 2, 2017); and “Will Industry Deregulation Affect the Value of Legal and Compliance Staff?” (Feb. 16, 2017).