Foreign exchange and interest-rate exposure may have once been seen as afterthoughts in private market transactions. Yet, investors are increasingly pursuing global strategies, seeking capital and investment opportunities across the world, just as increased diplomatic tensions and a shifting global political landscape are increasing market volatility. Within this context, monitoring and hedging against FX and interest rate risks have become essential tools for protecting internal rates of return.
Marex’s newly launched Private Markets desk provides interest rate and FX solutions for private capital managers to effectively manage risk for global investment strategies. Led by Jack Carnell, Head of Portfolio Solutions for Private Markets, and Lloyd Beeston, Head of Dealing for Private Markets, the desk provides high-touch, institutional-grade interest rate and foreign exchange solutions and expands Marex’s current offerings.
Supporting private capital managers with FX and interest rate expertise
Private capital managers operating across borders face a distinct set of FX and interest rate challenges – tight transaction timelines, complex multi-currency exposures and the need for bespoke solutions that protect returns without adding unnecessary friction. The Private Markets desk is built to address each of these issues across the deal lifecycle.
Deal opportunities we support
Acquisitions
The period between signing a Sale and Purchase Agreement (SPA) and completing an acquisition can be short. However, during this window, unhedged FX exposure can meaningfully impact returns. Marex Private Markets desk provides swift, institutional-grade FX hedging solutions for acquisition transactions, whether they are $5m or $500m, giving managers the certainty they need to close with confidence.
Disposals and exits
With an exit, FX exposure doesn’t disappear at signing. In our experience, funds typically seek to hedge for up to eight weeks following SPA execution. The desk works with managers to structure forward hedges that protect exit proceeds through to settlement.
Rolling NAV hedges
For managers requiring ongoing currency risk management at the portfolio level, we offer rolling, net-settled NAV hedges. These structures provide a capital-efficient mechanism for managing persistent FX exposure across a fund’s holdings.
Management fees
Management fee currency exposure can often be overlooked, which is why managers need experts in their corner. Marex’s Private Markets team offers both spot execution and hedging solutions tailored to the frequency and currency profile of each manager’s fee arrangements.
Interest rates
Whether at acquisition, refinancing or during the hold period, floating rate debt can put pressure on returns, especially in a rising rate environment. The desk structures interest rate caps and collars that help to protect against adverse rate movements while preserving flexibility if rates remain stable or fall.
A trusted counterparty
Private capital managers are more focused than ever on working with credible counterparties, reflecting market consolidation and a growing appetite for a broader range of solutions.
As a global, diversified financial services platform with an investment-grade credit rating, Marex provides essential liquidity, in-house execution and market access to clients. With deep private markets experience, institutional-grade risk management and purpose-built trading technology, our team is positioned to move quickly and effectively to help protect returns throughout a transaction lifecycle.
Explore FX and interest rate solutions for private capital managers
