Private markets
Institutional FX. Protected NAV.
Private credit funds, infrastructure investors, and PE managers operating across borders face a structural FX challenge — LP subscriptions arrive in multiple currencies, portfolio costs sit in local currencies, and NAV is reported in a single base currency. Jackson Swiss Partners provides the institutional FX hedging, capital call management, and payments infrastructure to protect your fund returns from currency drag.
The challenge
Subscriptions in USD. Portfolio in EUR. NAV in GBP.
Multi-currency fund structures create a compounding FX problem: LP capital arrives in USD, EUR, and GBP; portfolio companies operate in local currencies across multiple jurisdictions; and the fund reports NAV to LPs in a single base currency. Every exchange rate move between commitment and realisation erodes the return you deliver.
The result is silent currency drag — 2–5% per annum on unhedged multi-currency funds — that compresses IRR and LP distributions without ever showing up on a deal analysis. A structured NAV hedging programme converts this unpredictable variable into a fixed, manageable cost and gives LPs the currency certainty they require.
Currency Drag on Fund Returns
FX moves between deal signing and realisation directly compress IRR and LP distributions. Unhedged multi-currency funds typically suffer 2–5% annual drag on GBP-equivalent returns.
Capital Call Timing Risk
Committed capital sitting in LP base currency gains or loses value between commitment and deployment, creating unintended FX P&L that obscures true investment performance.
Multi-Currency Portfolio Complexity
Portfolio companies operating in different jurisdictions generate payments, debt service, and dividends in multiple currencies that need consolidation into the fund reporting currency.
Core solutions
Built for private markets
Fund-Level FX Hedging
Protect NAV and LP returns with forward contracts matched to fund investment periods and realisations — mitigating currency drag from multi-currency portfolios.
- NAV hedging programmes for multi-currency funds
- Forward contracts matched to exit timelines
- LP reporting currency protection
Capital Call FX Management
Hedge committed but undeployed capital between capital call and deployment to reduce timing FX risk on LP subscriptions.
- Hedge committed capital from call to deployment
- Phased drawdown as capital is deployed
- Multi-currency LP base currency support
Portfolio Company Payments
Execute multi-currency payments across portfolio — debt service, management fees, dividend upstreaming, and intercompany loans in 30+ currencies.
- Debt service in local currencies
- Dividend upstream to fund in reporting currency
- Intercompany loan settlement and FX netting
Political Risk Insurance
Protect cross-border investments in frontier and emerging markets from expropriation, political violence, and contract frustration.
- Expropriation and nationalisation cover
- Contract frustration and licence cancellation
- Political violence and civil unrest
How it works
From subscription to distribution
Subscribe
LP capital received in multiple currencies; convert to fund base currency or hold in currency-specific sub-accounts pending deployment.
Hedge
Structure forward contracts covering capital call period, investment horizon, and expected exit date — protecting GBP NAV throughout the fund life.
Deploy
Execute cross-border portfolio investments with FX settled at hedged rates; multi-currency portfolio company payments routed through JSP.
Distribute
Convert portfolio company dividends and exit proceeds to LP reporting currencies; distribute with full FX reporting and locked rates.
global private equity transaction value in 2023
currencies supported across global private market portfolios
typical annual FX drag on unhedged multi-currency private market funds
Why choose JSP
What private market managers gain
Fund-level expertise
Deep knowledge of PE, private credit, and infrastructure fund structures and LP reporting requirements across multi-currency portfolios.
Large transaction rates
Institutional rates on single FX transactions from $1M+ — critical for large cross-border deal closings and capital deployments.
NAV protection
Structured hedge programmes that protect the GBP/EUR NAV delivered to LPs regardless of portfolio currency movements during the fund life.
30+ currencies
Full multi-currency capability for cross-border deals, portfolio company payments, and LP distributions across all major fund jurisdictions.
Political risk placement
Specialist coverage for frontier and emerging market investment exposure — expropriation, contract frustration, and civil unrest.
Integrated lending & FX
Asset finance and bridging facilities alongside FX — one relationship for cross-border transaction finance and currency management.
Relevant services
The Jackson Swiss Partners toolkit for private markets
FX Hedging
NAV hedging programmes and forward contracts for multi-currency funds — matched to investment horizons and exit timelines.
Learn moreAsset Finance
Flexible asset-backed lending for private market acquisitions — bridging equity commitments to deployment alongside FX hedging.
Learn moreInsurance Solutions
Political risk insurance for frontier and emerging market private equity investments — expropriation, contract frustration, and civil unrest coverage.
Learn morePrivate markets FX FAQ
Common questions from PE managers, private credit funds, and infrastructure investors managing multi-currency portfolios.
We work with fund finance and operations teams to map the full currency exposure of the fund — LP subscription currencies, portfolio company operating currencies, and LP reporting currencies. We then structure a NAV hedging programme using forward contracts sized to the fund's net asset value, matched to the expected investment horizon and exit timelines. This converts the multi-currency portfolio exposure into a protected GBP or EUR NAV for LP reporting, helping to mitigate the risk of currency drag compressing returns between investment and realisation.
Yes — this is a structural FX risk that is often underestimated. Between a capital call and the point of portfolio deployment, committed LP capital sitting in the wrong currency can gain or lose value due to FX movements, creating unintended P&L. We can hedge this committed-but-undeployed capital using short-dated forward contracts from the call date to the expected deployment date, with phased drawdown as capital is deployed into individual investments.
We support 30+ currencies for portfolio company payments, covering all major private equity jurisdictions — EUR, USD, GBP, SEK, NOK, CHF, AUD, SGD, HKD, JPY, AED, and more. We can execute debt service payments in local currencies, upstream dividends to the fund in its reporting currency, settle intercompany loans, and net payments across portfolio companies where possible. Same-day settlement is available on all major corridors.
We can place political risk insurance for private equity investments in frontier and emerging markets, including coverage for expropriation and nationalisation of assets, contract frustration and licence cancellation, political violence and civil unrest, and transfer and convertibility restrictions. Coverage is structured around the specific investment — taking into account the jurisdiction, asset type, investment structure, and LP requirements. We work with specialist underwriters with deep experience in emerging market investment risk.
Yes — and this integrated capability is a core differentiator for our private markets clients. For a cross-border acquisition, we can provide bridging finance to fund the equity portion while simultaneously hedging the FX exposure on the purchase price. This means your finance and currency strategies are fully aligned from the outset, with a single team managing both — reducing the complexity of coordinating separate lenders and FX providers on a time-critical deal.
Get started
Ready to protect your fund returns from FX risk?
Speak to a private markets FX specialist who understands fund structures, LP reporting requirements, and the cost of getting currency wrong on a multi-hundred million dollar portfolio. We will identify the right combination of NAV hedging, capital call management, and political risk insurance for your fund.