What we do
Stay on top of your FX operations and manage exposure to volatile foreign exchange markets with our cost-effective FX solutions. We have partnered with the leading commercial foreign exchange provider to deliver high quality foreign exchange and currency risk management solutions including OTC FX derivatives to our global client base. Save up to 50% on current rates, even on smaller FX or Equity trades.
Our unique single-source solution can support you with every service you need through a single relationship; including banking, depositary, custody, fund services and corporate solutions.
Services and Benefits
How does the process work?
The FX provider supports the PE manager with a short dated hedging line to fix the capital call This allows the vehicle to ‘call down’ the exact amount of capital from the investor pool (as the exchange rate has been fixed)
This solution removes the requirement for the PE manager to ‘over-call’ capital to allow for FX fluctuations within the requisite call period
The FX provider can offer flexibility around the settlement date of the FX hedge to allow for unexpected delays in the monies arriving. The PE manager can utilise the hedge early if the monies arrive earlier than anticipated
This simple strategy removes the risk of adverse movements within the call period. The FX provider would look to offer this hedge without requiring any upfront cash/collateral against the short-dated FX hedge
Risk: By fixing your FX rates using forward contracts, you will be prevented from benefiting from any potential favourable rate movements in the spot market during the call period.