Case studies: hedging for asset managers
16/06/2025
Case Study: Hedged EUR feeder into USD closed-end fund
A global private credit manager was facing significant demand from EU institutional investors for a hedged EUR feeder vehicle. The manager had limited prior hedging experience and required a fast solution ahead of a closing.
Record has a proven track record of providing bespoke solutions across various asset classes and underlying fund liquidity profiles
The Record Solution
Record was able to onboard the manager in six weeks, establishing a fully- outsourced solution covering FX hedging and FX conversion. Record negotiated uncollateralised FX trading lines and advised on a bespoke hedging structure to match the liquidity requirements of the underlying fund.
Case Study: Open-ended EUR semi-liquid credit fund investing in GBP assets
The fund identified several UK-based investment opportunities, which meant lending in GBP rather than EUR. However, the manager was sensitive to the potential impact of cash drag on returns in any hedging arrangement.
The Record Solution
Record designed a cash-efficient hedging program that eliminated to the need to hold cash to meet FX cashflows. Record negotiated uncollateralised trading lines and aligned hedge maturity dates with income payment dates from the loan portfolio; allowing this income to offset any cashflows.