As a growing number of hedge fund managers look to Undertakings for Collective Investments in Transferable Securities (UCITS) funds as a means of accessing the European market, those managers must establish a framework for distributing UCITS funds.  While UCITS products are more regulated and transparent than private hedge funds, investors must still conduct thorough operational due diligence before investing in those funds.  At the recent Liquid Alternative Strategies Global conference held in London, speakers delved into these topics as part of a broader discussion about the rise of alternative UCITS as a global investment solution.  This article, the second in a two-part series, focuses on distribution of UCITS products and operational due diligence.  The first article addressed the drivers behind the recent growth in alternative UCITS funds and several key factors that managers should consider when assessing their ability to capitalize on demand for UCITS products.  For more on UCITS, see “U.K. Government Proposes to Implement UCITS V Measures Applicable to Fund Managers,” Hedge Fund Law Report, Vol. 8, No. 43 (Nov. 5, 2015); and “FCA Consults on Implementation of UCITS V Provisions Applicable to Managers,” Hedge Fund Law Report, Vol. 8, No. 36 (Sep. 17, 2015).  For more on operational due diligence, see “PLI ‘Hot Topics’ Panel Addresses Operational Due Diligence and Registered Alternative Funds,” Hedge Fund Law Report, Vol. 8, No. 48 (Dec. 10, 2015); and “FRA Liquid Alts 2015 Conference Highlights Due Diligence Concerns with Alternative Mutual Funds (Part Three of Three),” Hedge Fund Law Report, Vol. 8, No. 19 (May 14, 2015).