$€£¥

Private Equity Funds — Cross-Border Investments & Capital Calls

Managing FX exposure on a EUR 200M acquisition and multi-currency capital call

Download PDF All Case Studies→

Industry:Private Equity

Client:US-based private equity firm

Region:United States

Exposure:EUR 200M + CAD $40M

EUR 200M

Investment Size

CAD $40M

Capital Call

$5M+

Potential Savings

Background

A US-based private equity firm commits to a cross-border German investment closing in 2 months. The firm issues a 15-day capital call to Limited Partners — 80% US-based and 20% Canadian-denominated.

Private Equity Funds — Cross-Border Investments & Capital Calls

Products Used

Forward ContractsVanilla Call OptionsCollar Options

Challenge

EUR 200M investment acquisition exposed to euro fluctuations
CAD $40M capital call from Canadian LPs with currency risk
Need to lock in rates before closing without deploying full capital upfront
Balancing cost of hedging against potential adverse currency moves

Strategy

Forward Contracts: Buy EUR 200M / sell USD at locked rate (60-day maturity)
Forward Contracts: Buy USD / sell CAD for LP capital call (15-day maturity)
Vanilla Call Option: EUR Call/USD Put for flexible upside participation
Collar Option: Buy call and sell put to reduce premium cost to 0.65%

Outcomes

EUR/USD hedge saved up to $5M+ in potential adverse currency movement
CAD hedge protected nearly $1M in capital call proceeds
Options strategies provided flexibility with controlled downside
Comprehensive risk framework for future cross-border acquisitions

Download This Case Study

Get the full case study as a PDF for your records or to share with your team.

Download PDF

Streamlining Supplier PaymentsPrevious All Case Studies Currency Rate ImpactsNext

Ready to Write Your Success Story?

Talk to our team about how Monex can help your business save on FX, reduce risk, and simplify payments.

Get a Free Consultation