Some private fund managers establish hybrid funds to diversify or complement their core hedge or PE fund offerings, or in response to investor interest. A recent program presented by Sidley Austin provided an overview of the benefits and drawbacks of hybrid funds and analyzed the most common structural, operational and tax-related issues faced by sponsors of hybrid funds. Sidley partner Elizabeth Shea Fries moderated the discussion, which featured partners Scott Macdonald, John T. Schaff and Jennifer A. Spiegel. This article summarizes their insights. For further commentary from Sidley attorneys, see “Implications for Investment Managers of the New E.U. Investment Firm Prudential Regime” (Oct. 15, 2019); and “How Recent Developments Under BEPS May Affect Fund Managers’ Ability to Use Special Purpose Vehicles” (Oct. 5, 2017).