Hedge Program Design

A Currency Risk Advisory is a structured end-to-end engagement designed to give funds a clear understanding of their FX exposures and a robust framework for managing them. It takes you from initial risk identification through to a formally documented hedging strategy and governance policy — ensuring every decision is grounded in rigorous, fund-specific analysis.

Managing currency risk in-house means competing with what Validus builds across 200+ clients: a 60+ bank panel for competitive pricing, a cross-functional 5-10 person team spanning risk advisory, execution, and operations, and technology investment that no single GP can match alone. Validus adds this scale alongside your existing team rather than replacing it, so decisions stay yours while the infrastructure and market access are shared across the full client base.

The core input we need is fund-level cash flow data (or assumptions) to build a representative exposure profile — this is what allows us to build an accurate risk profile and quantify your exposures from the ground up.

You don’t need to have made that decision before engaging with us. In fact, that’s exactly what our Risk Quantification phase is designed to help you work out. Before any strategy is designed or instrument is selected, we first build a clear picture of what your FX exposures actually are and how they might impact returns if left unmanaged. For many funds, simply seeing that analysis for the first time is what drives the decision. Our role at this stage is to give you the information you need to make that call with confidence — not to push you towards a particular outcome.

Every fund is different; different structures, different investor bases, different tolerances for cost and risk. We start by understanding what excellence looks like for you specifically, then run each potential strategy through our quantitative models — stress-testing performance, costs and liquidity trade-offs against your specific objectives. The recommendation we make is backed by a clear, evidence-based rationale so you can have full confidence in the decision.

A hedging policy brings structure and clarity to how your hedging program is managed over time. It documents the rationale behind the strategy, sets out clear parameters for execution, and ensures consistency as your fund evolves or your team changes. It also provides a straightforward reference point for boards, investors and regulators when questions arise.

Putting a hedging program in place is only half the job. Markets move, portfolios evolve and a strategy that made sense at inception needs to be monitored continuously to make sure it stays on track. Our platform gives you real-time visibility into where you stand at any given moment, so that you can flag issues before they become problems.