Fund-Level Hedging
Fund Finance
March 2026
Open-ended funds promise flexibility for GPs and liquidity for investors. But with perpetual capital comes perpetual complexity, particularly around FX hedging and liquidity.
Drawing on proprietary data from Validus and produced in collaboration with Private Equity Wire (PEW), this report demonstrates how hedging behavior differs meaningfully across asset classes and reveals a paradox: the short-dated hedging programs open-ended funds use to manage redemption risk create their own liquidity demands.
Founded in 2010, Validus is the risk management and fund finance partner of choice for 200+ private capital managers. By combining deep sector expertise with purpose-built technology and precise modelling, Validus gives clients confidence in their hedging programs and fund finance operations. Validus manages more than $600 billion in FX and interest rate exposure for private capital managers with over $3T in AUM.
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