This is the second article in a two-part series examining the more notable takeaways from the 2014 edition of Sidley Austin’s annual private funds event in New York City.  This article focuses on the discussion during a panel entitled, “Operating a Fund Manager: Opportunities and Pitfalls,” featuring Sidley partners Christian Brause, David R. Sawyier, Kathleen O’Hagan Scallan, Michael J. Schmidtberger and Daniel F. Spies.  The partners discussed capital markets as a source of liquidity for fund managers, evolving trends in seed deals, succession considerations, the challenges of business and personal divorces as they relate to structuring and succession, trust and estate considerations and fund- and management company-level tax developments.  The first article covered evolving fee structures, seed deal terms, single investor hedge funds, risk aggregators, expense allocations and co-investments, among other issues.