Each asset class in the private funds industry faces different risks related to parallel funds and conflicts of interest. Hedge funds, for example, are more likely than PE funds to have multiple funds share investment strategies despite being at different stages of their investment cycles. Although PE funds confront those risks less frequently, they can certainly still arise when a fund attempts to add a supplemental round of investors before its final close or when a sponsor raises a new vehicle for a co‑investment. Those scenarios, among several, are described in a recent case study published by the Standards Board for Alternative Investments (SBAI) on conflicts of interest when managing parallel funds. This second article in a two-part series describes common scenarios in which conflicts of interest may arise between parallel funds and near-parallel funds in PE, real estate and credit funds. The first article summarized the SBAI’s newly released standards and its suggestions for mitigating conflicts of interests while operating parallel funds, including how to determine when two funds are sufficiently “similar” for that purpose. See our two-part series on PE sponsors with private credit strategies: “What Must a PE Sponsor Consider Before Launching a Private Credit Strategy?” (Feb. 4, 2020); and “Four Common Fund Structures to Mitigate ECI Risks When a PE Sponsor Launches a Private Credit Strategy” (Feb. 11, 2020).