x
_thumbnail_id: Array
author: Array
_author: Array
article_modules: Array
_article_modules: Array
modules_0_title: Array
_modules_0_title: Array
modules_0_content: Array
_modules_0_content: Array
modules: Array
_modules: Array
modules_2_download_box_download_box_title: Array
_modules_2_download_box_download_box_title: Array
modules_2_download_box_download_box_button_text: Array
_modules_2_download_box_download_box_button_text: Array
modules_2_download_box_download_box_button_url: Array
_modules_2_download_box_download_box_button_url: Array
modules_1_title: Array
_modules_1_title: Array
modules_1_content: Array
_modules_1_content: Array
modules_1_download_box_download_box_title: Array
_modules_1_download_box_download_box_title: Array
modules_1_download_box_download_box_button_text: Array
_modules_1_download_box_download_box_button_text: Array
modules_1_download_box_download_box_button_type: Array
_modules_1_download_box_download_box_button_type: Array
modules_1_download_box_download_box_button_url: Array
_modules_1_download_box_download_box_button_url: Array
modules_1_download_box: Array
_modules_1_download_box: Array
modules_2_quote_author: Array
_modules_2_quote_author: Array
modules_2_enable_tweet: Array
_modules_2_enable_tweet: Array
modules_2_quote: Array
_modules_2_quote: Array
modules_3_title: Array
_modules_3_title: Array
modules_3_content: Array
_modules_3_content: Array
modules_4_title: Array
_modules_4_title: Array
modules_4_content: Array
_modules_4_content: Array
modules_5_background_image: Array
_modules_5_background_image: Array
modules_5_video_title: Array
_modules_5_video_title: Array
modules_5_video_thumbnail_url: Array
_modules_5_video_thumbnail_url: Array
modules_5_video_url: Array
_modules_5_video_url: Array
modules_5_video_duration: Array
_modules_5_video_duration: Array
modules_5_video_description: Array
_modules_5_video_description: Array
modules_5_video_embed_code: Array
_modules_5_video_embed_code: Array
modules_6_title: Array
_modules_6_title: Array
modules_6_content: Array
_modules_6_content: Array
modules_5_image_caption: Array
_modules_5_image_caption: Array
_yoast_wpseo_content_score: Array
article_modules_1_download_box_download_box_title: Array
_article_modules_1_download_box_download_box_title: Array
article_modules_1_download_box_download_box_button_text: Array
_article_modules_1_download_box_download_box_button_text: Array
article_modules_1_download_box_download_box_button_type: Array
_article_modules_1_download_box_download_box_button_type: Array
article_modules_1_download_box_download_box_button_url: Array
_article_modules_1_download_box_download_box_button_url: Array
_yoast_wpseo_primary_category: Array
_wp_old_slug: Array
article_modules_1_title: Array
_article_modules_1_title: Array
article_modules_1_content: Array
_article_modules_1_content: Array
modules_0_module_title: Array
_modules_0_module_title: Array
modules_0_background_color: Array
_modules_0_background_color: Array
modules_0_module_type: Array
_modules_0_module_type: Array
modules_0_filter_posts_by_taxonomy: Array
_modules_0_filter_posts_by_taxonomy: Array
modules_0_filter_posts_by_tags: Array
_modules_0_filter_posts_by_tags: Array
modules_0_link_text: Array
_modules_0_link_text: Array
modules_0_link_url: Array
_modules_0_link_url: Array
article_modules_2_title: Array
_article_modules_2_title: Array
article_modules_2_content: Array
_article_modules_2_content: Array
_yoast_wpseo_focuskw_text_input: Array
_yoast_wpseo_focuskw: Array
_yoast_wpseo_metadesc: Array
_yoast_wpseo_linkdex: Array
page_summary: Array
_page_summary: Array
modules_1_text: Array
_modules_1_text: Array
modules_2_module_title: Array
_modules_2_module_title: Array
modules_2_background_color: Array
_modules_2_background_color: Array
modules_2_column_ratio: Array
_modules_2_column_ratio: Array
modules_2_editor_content_left: Array
_modules_2_editor_content_left: Array
modules_2_button_text_right: Array
_modules_2_button_text_right: Array
modules_2_button_type_right: Array
_modules_2_button_type_right: Array
modules_2_button_url_local_right: Array
_modules_2_button_url_local_right: Array
_dp_original: Array
_edit_lock: Array
_edit_last: Array
article_modules_0_title: Array
_article_modules_0_title: Array
article_modules_0_content: Array
_article_modules_0_content: Array
article_primary_tag: Array
_article_primary_tag: Array
FX deal-contingent hedging for a large PE fund
Case studies

FX deal-contingent hedging for a large PE fund

Background
  • Large EUR PE fund acquiring a UK business with a consideration payable in GBP
  • Equity for the transaction was denominated into EUR giving rise to FX risk between signing and closing of the acquisition price
  • Deal was subject to regulatory approval which implied a low risk of the acquisition failing to complete
  • The client had the choice between eight deal-contingent providers (inbounds + banks involved in the deal)
Our Approach
  • JCRA conducted an independent review of the SPA to offer two alternatives for implementation achieving different objectives and timelines
  • We managed and coordinated an efficient process with a tight schedule (three BD to trade) with the client, the selected banks and all the other parties involved (M&A lawyer for due diligence and a derivatives lawyer to review the deal confirmation)
  • We provided additional input during the process: deal-contingent option discussion, flexibility to settle before closing and other commercial points
  • Finally, JCRA conducted live benchmarking during implementation of trade ensuring efficient, transparent pricing achieved
Benefits
  • Tailor made process to the underlying M&A situation, the banks involved and the size of market risk in order to create the best pricing environment while limiting the amount of work/resources on the client side
  • Very tight deadline for implementation
  • Highly attractive pricing with a dealcontingent premium of less than 20% of the at-the-money option
  • Flexible settlement mechanism allowed for the delivery of the contract at any date between the first and the long stop date at no additional cost
 

More Private Equity case studies

Case studies
FX ongoing support
Private Equity July 2019
Case studies
IR Hedging termination
Private Equity July 2019
Case studies
Hedging of EUR refinancing
Private Equity April 2019

Contact us

If you need hedging or debt advice or would like to speak to the team, please get in touch.