The private funds industry continues to feel the effects of various factors that have impacted it over the past year, such as the coronavirus pandemic, as well as the blurring of the lines between hedge funds and private equity. As fund managers come to terms with those changes, they must ensure that their legal and compliance departments are prepared – and sufficiently staffed – to meet the challenges that lie in the road ahead. To examine these issues and their impact on the market for legal and compliance staff, the Hedge Fund Law Report recently spoke with David Claypoole, founder of Claypoole Executive Search. In this second article in a two-part series, Claypoole explores recent changes to the SEC and their potential impact on the industry; the regulator’s and industry’s performance during the coronavirus pandemic; and trends in compensation of and demand for legal and compliance personnel. The first article set forth his insights on the factors driving increased demand for in-house staff; the anticipated effects of the Biden administration on the private funds industry; the likelihood of increased regulatory scrutiny of fund managers; and the need to ensure that legal and compliance staff has adequate resources. For further commentary from Claypoole, see our two-part series on the market for in-house compensation at hedge fund managers: “What Is the Value of Legal and Compliance Staff?” (Mar. 12, 2015); and “Trends in Legal and Compliance Hiring and Staffing” (Mar. 19, 2015).