There is never a dull moment in the private funds industry. Sometimes the markets are frothy and liquidity flows like wine, allowing managers to profitably move off investments and swiftly launch new, fully subscribed funds. Other times, the markets are unsettled by pandemics, invasions or abnormally high interest rates, abruptly turning off the liquidity faucets and forcing managers to adopt creative solutions. Omnipresent regardless of those developments is the push-pull of GP/LP negotiations, as well as the exploration of new types of fund vehicles to access heretofore unavailable sources of capital. To apprise sponsors of where those dynamics stand as we begin 2024, the Private Equity Law report interviewed Simpson Thacher partners Michael W. Wolitzer and Michael J. Osnato, Jr. This second article in a two-part series details specific fund terms and practices that are likely to persist in 2024, along with compliance practices sponsors need to adopt to endure heightened SEC scrutiny. The first article forecasted the potential tone and focus of examinations by the SEC’s Division of Examinations in the new year, as well as how potential rule changes could affect PE sponsors. For additional commentary from Osnato, see our two-part series on SEC cooperation credit: “Examining HeadSpin as a Framework for Optimal Remediation Measures” (Jun. 1, 2023); and “Inherent Obstacles to Fund Managers Receiving Full Credit” (Jun. 15, 2023).