In today’s rapidly evolving and highly regulated financial environment, private funds are under increased scrutiny from regulators and investors alike. The need for a robust compliance department is now more critical than ever, as non‑compliance can result in severe financial penalties and reputational damage. To keep pace with the increasing regulatory requirements and technological advancements, fund managers must embrace the latest compliance technology and tools – including generative artificial intelligence – to build a robust compliance department. This article explores how Fir Tree Partners (Fir Tree) embarked on a multi‑year process to create a compliance department that leverages advanced regulatory technology (RegTech) solutions to ensure the highest level of compliance and risk management. Fir Tree determined that using RegTech could bring about an array of substantial benefits, effectively transforming the landscape of its compliance operations. See “The Evolution, Status and Future of RegTech in the Private Funds Industry (Part One of Two)” (Mar. 3, 2020).