Now that Election Day is nearly a week behind us, the bunting has all been put away and the confetti swept from the streets…wait, this was a midterm election, so maybe no bunting or confetti, but at least TV ads are back to selling, not slinging, and a few yard signs have come down. For all the glamour and hype that a midterm election typically lacks, this one saw big change across the nation. But whether you experienced elation or devastation…wait, midterm year, make that modest content or mild disappointment, one fact remains: what happened on Tuesday was not without precedent. Some call it the Six-Year Itch, others the Six-Year Curse, but whatever you call it, there is a phenomenon that has been playing out over the last 100 years wherein whichever political party has held the White House for…

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Mitigating risk and avoiding dead deal costs When a private equity investor agrees to purchase a company in a foreign currency rather than the currency in which the debt or equity is funded (e.g. investing equity from a US Dollar denominated fund in a JPY asset or raising debt in USD for a CAD investment), the fund runs the risk that, prior to closing, foreign exchange (FX) rate movements will require additional funding. Many investors prefer to lock in the specific equity check required at the time of signing to avoid any surprises at closing. Deal contingent FX hedging allows investors to lock in a specific FX rate. It also allows them to walk away with no strings if the underlying deal does not close. Similarly, the high amount of leverage in these deals also prompts investors to take advantage…

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