Services Overview

Validus key services and areas of expertise

As a specialist risk management advisory firm, our mission is to provide customised risk management solutions for our clients, and to add transparency to the financial risk management process.

 

Our independent perspective and market experience allow us to design innovative risk management strategies, which often combine internal strategy or process adjustments with financial hedging programmes.  Our proprietary risk technology ensures that market risks are monitored effectively, and that hedging strategies are regularly evaluated, benchmarked and re-calibrated as required to ensure they remain effective. 

Other Services

In addition to our core risk management service offerings, Validus provides solutions in a number of related areas:



RISKVIEW™ Technology

RISKVIEW™, our proprietary risk dashboard technology, is a powerful and flexible risk management tool. Combining market data and derivative pricing functionality with customised risk management key performance indicators (KPIs), RISKVIEW™ ensures that financial risk exposure and hedging strategy performance is transparent and easy to communicate. RISKVIEW™ facilitates collaboration between our clients and our advisory service teams, and delivers actionable internal risk reporting.

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Fund Risk Reporting

Validus designs tailored risk reports driven by the unique requirements of private debt, real estate, infrastructure and private equity funds and investors. The historical consequences and possible forward looking impacts of risk factors (such as currency, liquidity, and interest rates) are reported clearly and intuitively, and the costs and benefits of fund level hedging programs are quantified.

Fund Level Hedging

Managing market risk on a fund level is a complex and dynamic process for private equity and private debt funds, involving the optimization of several variables, including return at risk, liquidity impacts and hedging costs. At Validus, we work with fund managers and institutional investors to develop customized algorithms which allow hedging strategies (FX and IR) to be calibrated based on fund requirements and objectives, as well as financial market conditions.

Separately Managed Account (SMA) Hedging

The establishment of SMAs can introduce a new risk dimension for many funds, especially with respect to FX risk. The SMA may have a different base currency and / or risk objectives, and may require the establishment of alternative FX hedging facilities (such as credit lines). Validus has experience in designing customized SMA hedging strategies that are specifically tailored to the requirements of the investor. In addition, Validus works with leading international investment banks to establish trading facilities on behalf of the SMA, to enable the efficient execution of hedging transactions.

Private Equity Due Diligence

Private equity investments can be materially impacted by market risk volatility (FX, Interest Rates, Commodities). Validus works with private equity firms to analyze and quantify the impact of market risk on investment valuation, ensuring that deal pricing reflects these important factors.








 

White Papers


 

FX Hedging:

10 Common Pitfalls

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Commodity & FX Risk:

An Integrated Approach

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The Corporate Use of Credit Derivatives:

Where Next?

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Corporate Hedger’s Guide to Basel III

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Currency Volatility – Are markets nearing an inflection point?

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Testimonial

Private Equity

 

 “The Validus team understand how private equity thinks about financial risk management issues and they are rigorous in the way they help our portfolio companies to understand and mitigate their risks.”

 

James Markham, Partner – Portfolio Management, Graphite Capital LLP

Testimonial

FX and Commodity Risk

 

“Validus provides us with independent strategic advice relating to our long-term currency and commodity risk management program.  The people are extremely capable and collaborate very well with our finance and operations teams here at JD Irving.”

 

Mark Bettle, Director, J.D. Irving Ltd.

Testimonial

FX  Risk

 

 “Validus developed a tailored hedging solution to mitigate the risks from our unique combination of existing supplier agreements. The implementation and management of this rolling hedging programme with our FX service providers has been expertly and efficiently handled”.  

 

Mark Goldby, Finance Director, SMS Electronics Ltd.

Testimonial

Commodity Risk

 

“Validus worked with us to develop a comprehensive commodity risk management programme – their analysis was both insightful and actionable.   We particularly value their independence, and they continue to work alongside our internal team to ensure our commodity price risks are managed effectively”


Gerry Gray, Finance Director, Strix Ltd.


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