Side letters have long been in use in the private equity market, helping to interpret, supplement, modify and establish the terms contained in fund agreements and related documents. But while side letters are negotiated and entered into with increasing frequency, their enforceability and the preferential terms contained in them cannot be taken for granted, write Torys LLP Associates Emma Brady and Sarah Carter in an exclusive PE Hub Canada feature article. Brady and Carter cite as evidence a recent case involving investors in Facebook's IPO.
