While some hedge funds are taking advantage of investment opportunities presented by the current economic climate, others have been compelled to close their doors. For example, hedge fund manager Solus Alternative Asset Management LP told investors in March that it was shutting down its flagship fund. Fund managers in a similar position may have no choice but to wind down their funds. So, how does that process work? In an interview with the Hedge Fund Law Report, Michael C. Neus, former senior fellow with the Program on Corporate Compliance and Enforcement at New York University School of Law and current GC/CCO of ExodusPoint Capital Management LP, shared his detailed insights about the various considerations caused by winding down a fund. The first article in this two-part series presents Neus’ thoughts on the factors leading to the decision to wind down a fund; which personnel should lead that process; and how it should be disclosed to investors and service providers. The second article explores what types of fees and expenses investors should be charged during the wind-down, as well as how managers can maximize the value of illiquid assets during a liquidation. For more on winding down funds, see “Practical Tips for Fund Managers to Mitigate Litigation Risk From Regulators, Investors and Vendors When Winding Down Funds” (Oct. 27, 2016).