Why Gating Breaks Down: Behavioral and Structural Causes

The firm will be hosting a seminar on redemption gates in hedge funds, focused on how gating mechanisms behave under stress.

Redemption provisions are often drafted as standard legal terms, yet in stressed markets they become active liquidity allocation systems—shaping investor behavior, governance outcomes, and fiduciary risk. This seminar examines why many gating structures fail predictably, and how managers and counsel can redesign liquidity mechanics to improve certainty, fairness, and resilience.

The seminar will cover: 

• The tendency of fund level gates to incentivise inflated redemption requests
• The impact of uncertainty, incentives and discretion optics on investor behavior
• The role of lock ups, soft lock ups and the “denominator” problem
• The linkage of notice periods to redemption capacity to restore predictability
• The structuring of gate waivers and fees as cost recovery mechanisms rather than discretionary tools.

Please register and indicate your attendance preference (in-person/online). CPD/CLE accreditation application in progress. Attendance confirmation available to support CPT applications, if required.