Analyzing risk and designing programs for private equity firms
As an investor in companies that involve foreign entities, currency risk becomes an inevitable factor. Private equity investors need to consider these risks in the context of currencies involved. This includes market liquidity and optimal structure of the debt as well as debt of the underlying operation. Analyzing these factors to determine the most favorable scenarios is key to the entire investment process.
Chatham Financial Risk Analysis and Program Design Services
- Scenario analysis and strategy: Chatham partners with private equity investors to develop scenarios and alternative models to determine the ideal risk management strategy. We consider whether the debt can be offset synthetically and, if so, we develop an optimal investment structure.
- Designing the optimal program: Chatham is in the markets every day. This gives us a very practical and informed perspective on what is feasible for execution, what structure can receive proper hedge accounting treatment, and what is a fair price.
Our holistic approach lets investors focus on their investment decisions without the concern that rate movements will undermine their investment plan or return. Our fee structures are clear—and the meter isn’t running each time you engage with your Chatham advisor.