Fund-Level Hedging
Fund Finance
The world’s leading private capital managers partner with us to design and manage hedging programs. We bring precision to strategies that protect fund returns across all asset classes from first close to final distribution.
Private capital firms face risk across currencies, rates and financing structures, which need to be managed in the context of evolving market conditions. Validus helps teams understand where risk sits, how it changes over time and which hedging approach best supports the investment thesis, across the full fund lifecycle.
Private equity risk can take many forms. Exposure varies by deal, geography, financing structure, hold period and exit scenario. Validus helps managers assess risk case by case, model potential outcomes and structure hedging programs around the economics of each investment. We also provide analysis in the context of the overall fund risk profile and objectives. This includes considerations across:
Private equity hedging decisions, like the investments themselves, are often made at the deal level. Validus helps teams assess exposure, cost, liquidity and uncertainty against the investment thesis and recommends a range of hedging approaches and bank partners.
Exposure can sit at the fund, asset or portfolio company level. Validus supports FX, rates and market risk decisions across the full private equity investment lifecycle.
Private credit portfolios require precision. Contractual cash flows create visibility, but discreet interest rate and FX exposures as well as underlying portfolio risks can quickly affect returns. Given the return profile of credit, it’s a priority to put a robust hedging program in place. Validus helps managers align hedge strategy to loan-level economics, with scalable execution and reporting built for active portfolios.
Contractual cash flows require precise hedging strategies, but also raise the bar for execution, monitoring and adjustment. Validus helps private credit managers align hedge activity to underlying deal cash flow dynamics, helping to safeguard returns.
There is explicit FX and interest rate exposure in private credit, as well as interplay between these risks. Validus helps managers evaluate and mitigate risks over the entire lifecycle, with strategies that properly take into account underlying loan economics.
Secondaries portfolios carry layered risk. Managers may own interests in funds that themselves hold companies, loans or assets across currencies and sectors. Validus helps evaluate this multi-level risk dynamic and manages associated FX hedging programs as portfolio information, valuations and underlying risks evolve.
Secondaries managers often face multilevel risks arising from the fund interest they acquire and the assets held beneath it. As Validus has broad experience across all underlying asset classes, we are uniquely positioned to identify where exposure actually sits — how to model it, how to monitor it and how to mitigate it.
Secondaries portfolios are diversified and constantly evolving. Validus helps managers adapt hedge strategies dynamically as performance data, valuations and exposure information become available.
Real estate investing requires active management from acquisition, financing, and management through to exit. Validus combines deep quantitative analytics with hands-on advisory to optimize deal-level economics and tailor hedge strategies to each cash flow profile — delivering solutions built for performance, not just lender compliance.
Real estate asset-level risk impacts financing, valuation and exit decisions. Validus helps keep hedge strategy aligned with performance expectations from acquisition through refinancing and sale.
Validus combines analytics, advisory and execution to help managers build programs around deal economics.
Infrastructure investments are long-dated, complex and often sensitive to financing, inflation and asset-specific risk. Validus helps managers design hedging programs that support downside protection, cash flow certainty and long-term return objectives.
Infrastructure managers often underwrite assets over many years. Validus helps create greater certainty around financing costs, cash flows and downside risk over the life of the investment.
Infrastructure now spans traditional assets, digital infrastructure and energy transition. Validus helps managers evaluate market risk as the sector and product selection expands.
LP risk is spread across managers, funds, currencies, asset classes and direct investments. Validus helps institutional investors aggregate information, assess portfolio-level exposure and manage market risk across private market allocations, including active overlay strategies for FX, rates, inflation and other exposures.
LPs need a clear view of risk across fragmented information sources. Validus helps bring exposures together across managers, funds, currencies and asset classes.
For investors managing risk directly, Validus supports overlay strategies across FX, rates and other exposures, helping turn portfolio insight into action.
Corporates, particularly sponsor-backed portfolio companies, often need practical support managing FX, interest rate and financing-related risk without building a full internal treasury function. Validus helps companies manage risk tied to cross-border operations, debt financing, acquisitions and commodity price exposure.
Many corporates need support managing interest rate exposure tied to debt facilities, acquisition financing or private credit arrangements as well as tools to monitor exposure across individual borrowers and broad portfolios.
For sponsor-backed companies, risk decisions must serve company needs and investor objectives. Validus helps align hedging strategy with management, sponsors and lenders.
Your service is strong across all areas inc. onboarding, execution, technical analysis / advisory.
Validus is by far and away the most credible [provider of hedging solutions] and helps get LPs comfortable
Broad relationship across platforms makes the team feel integrated into our business. We are able to truly outsource management of FX, a function we are understaffed for.
We strongly value the ability to utilize one vendor for fund finance, FX and rates (front and back office). Validus is open to new tech solutions and development, with approachable and trustworthy staff.
We very much appreciate the team’s credit fund expertise, customer service, and professionalism. Most of all the fact that the FX hedging program is successfully meeting its objectives.
All services received to date have been of exceptional quality and performed in a timely manner. Individuals have gone above and beyond what is expected of them.
Seamless portfolio review support and trade execution.
The Validus team understand how private equity thinks about financial risk management issues and they are rigorous in the way they help our portfolio companies to understand and mitigate their risks.
The Validus methodology and systems, backed by its RiskView™ technology platform has saved me between3 – 4 workdays a month of collating, verifying and creating regular internal reporting.
If you are looking for an advisor who understands the industry, who will be able to provide strategic; analysis, solutions and advice, and who provides appropriate technology Validus is the best in this area.
Having worked with Validus on numerous occasions over the last years, we have been impressed both at their level of industry knowledge and insight, together with their capability to promise and over deliver. Their ability to adapt to client needs and different situations is difficult to match. Validus’ methodology is backed by its technology platform, allowing for constant and effective monitoring and reporting.
We had a tight post-close window. Validus moved quickly, benchmarked the market properly and secured fees our internal teams may not have achieved alone.
Validus works with private capital managers, limited partners and corporates managing FX, interest rate and market risk. Our clients span private debt, private equity, secondaries, real estate, infrastructure, LP portfolios and sponsor-backed companies.
Validus helps private capital managers identify, quantify and manage risk across funds, assets and transactions. We combine specialist advisory, execution expertise and purpose-built technology to support hedge program design, trade execution, reporting, liquidity visibility and ongoing risk management.
Validus helps clients manage currency risk, interest rate risk, market risk, liquidity risk, counterparty exposure and regulatory reporting risk. Our work spans fund-level exposures, asset-level exposures, transaction-driven hedging, portfolio overlays and operational risk controls.
Each private market sector carries a different risk profile. Private credit portfolios often require hedging aligned to drawdowns, repayments and floating-rate exposure. Private equity and secondaries require deal-by-deal analysis across currencies, timelines and exit scenarios. Real estate and infrastructure often involve longer-dated cash flows, financing structures and sector-specific exposure patterns. Validus tailors each program to the economics, structure and objectives of the portfolio.
Yes. Validus supports both fund-level and asset-level hedging. At the fund level, we help managers quantify exposures, design hedge programs and manage ongoing risk across portfolios. At the asset level, we support transaction-specific hedging, deal economics, financing exposure and cash flow alignment.
Validus helps secondaries managers look beyond headline fund exposure to understand the underlying currency, rate and liquidity risks across assets, portfolios and transaction structures. We apply quantitative analysis to support dynamic hedge programs designed to protect returns and manage risk through acquisition, ownership and exit.
Validus helps LPs aggregate and understand exposures across managers, funds and multi-currency vehicles. We provide a clearer view of portfolio-level FX, rate and market risk, and design overlay strategies that align with institutional objectives, governance requirements and liquidity considerations.
Yes. Validus works with corporates that need specialist support managing FX, interest rate and market risk. We help treasury and finance teams assess exposures, structure hedging strategies, execute trades and improve visibility across risk, liquidity and reporting.
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