Fund-Level Hedging
Fund Finance
Fund-Level Hedging
Ongoing advisory, execution and operational support to maintain effective hedges as portfolios evolve.
Our clients decide what aspects of the hedging program they’d like to manage. We deploy service teams and technology modules as needed to keep clients ahead of the curve.
Validus helps clients manage the evolution of hedge programs in response to dynamic risk. We bring market expertise and access to counterparties. Machine learning and parallel compute architecture drive real-time analytics while operational coordination hardens resiliency across the hedging lifecycle.
Ongoing advisory support across deal-level hedging, policy review, liquidity risk, FX performance, custom analytics, peer benchmarking and portfolio reporting.
Support for managing ISDA-related provisions, including ATEs, CSAs, collateral thresholds, compliance certificates and trading relationship requirements.
Execution support for derivatives trades, including counterparty coordination, pricing benchmarking, best execution analysis and trade maturity management.
Post-trade operational support that helps manage settlements, confirmations, maturity events, cash movements and the follow-through required after execution.
Hedge Program Management draws on the scale and track record Validus brings across private capital.
200+
client relationships
1,100+
funds served
$3tn+
client AUM
100%
client retention
Our approach combines risk advisory, execution expertise, ISDA knowledge and operational support to help clients manage hedge programs with greater discipline, transparency and responsiveness as markets and portfolios evolve.
Guidance across exposures, liquidity, FX markets, policy review and portfolio changes throughout the hedge program lifecycle.
Support for efficient trade execution ($600B+ annually), liquidity risk management, counterparty coordination, best execution analysis and trade maturity management.
Post-trade support across settlements, documentation, ISDA provisions and reporting workflows that keep programs running smoothly.
Real-time Liquidity at Risk calculations for better counterparty optionality. Software that clients or Validus can operate to monitor exposures, assess liquidity impact, manage ISDA provisions, execute trades and oversee post-trade workflows. This gives teams clearer visibility into hedge activity and a stronger foundation for timely, informed decisions.
Hedge program management is the ongoing process of reviewing exposures, managing hedge positions, executing trades and supporting the operational work required to keep a hedging program aligned with portfolio and market changes.
Hedge Program Design is the upfront project that quantifies a fund’s currency and interest rate risk and sets the hedging strategy and policy. Hedge Program Management is the ongoing retainer that runs that program once it is live, across Risk Advisory, ISDA Advisory, Trade Execution, and Trade Ops, adapting hedges as funds deploy, harvest, and approach exit. Most clients move from Design into Management, though Management can also take over an existing program.
A program should be reviewed when market conditions, liquidity needs, fund lifecycle stages or portfolio exposures change. Reviews can help determine whether existing hedge policies, ratios, tenors or execution approaches remain appropriate.
Validus supports execution by helping clients access competitive pricing, evaluate trade structures, coordinate with counterparties and execute hedges efficiently within the parameters of the client’s broader program.
ISDA advisory helps clients manage the trading relationship provisions that govern collateral, termination events and thresholds. Validus supports this through documentation insight, monitoring workflows and technology-enabled tracking of ISDA terms.
Trade ops supports the post-trade lifecycle, including settlement coordination, maturity management, confirmations and operational follow-through, helping ensure trades are processed correctly after execution.
Hedge Ops+ manages the mechanics of trade maturity. Clients can roll forward, backward and settle trades, utilizing on-market trade structures and off-market HRRs and pre-deliveries. Features include: FX roll identification and automation | Auto-generated roll trade details for execution platforms | Trade request creation for rolls and future settlements | Calculation of expiring hedge settlements.
The upfront strategy engagement: Validus quantifies a fund’s currency and interest rate exposure, models hedging strategies on cost, protection, and liquidity, and documents a formal hedging policy.
For transactions like acquisitions, exits, or refinancings on tight deadlines, Event-Driven Hedging applies the same risk quantification and strategy design on a compressed, deal-specific timeline.
Advisory and operations for the credit facilities funds rely on, including GP commitment, NAV, and capital call lines, with Fund Finance Ops handling day-to-day facility operations.
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