Serge LeVert-Chiasson, Partner and MD Impact Investment Advisory, was recently quoted in WSJ Pro Private Equity, The Wall Street Journal’s exclusive propriety news source that provides specialised insight on private equity trends.
In the article, “Private-Equity Community Seeks New Ways to Combat Currency Risk in Emerging Markets,” Serge speaks to private equity reporter Luis Garcia about Sarona’s leadership on the project completed—with funding from the U.S. Agency for International Development (USAID) and in partnership with the Emerging Markets Private Equity Association (EMPEA) as well as Crystalus Inc.—to address currency risk mitigation in emerging markets.
The January 2018 final report, Expanding Institutional Investment into Emerging Markets via Currency Risk Mitigation, presents a few innovative approaches to mitigate currency risk for private equity investment in emerging markets. Amongst a few solutions proposed, one was pilot tested with a Sarona fund of funds—a solution pathway that is deemed, as Serge puts it, “not perfect but promising.” That solution: tailored proxy hedging. While conventional currency hedging provides little relief, the tailored proxy hedge piloted in this project, developed by Validus Risk Management Ltd., yielded positive results. Garcia’s article explores this solution.
Read the WSJ Pro article (WSJ Pro subscribers only)
Read the report Expanding Institutional Investment into Emerging Markets via Currency Risk Mitigation.
To learn more about this currency mitigation project, contact Serge LeVert-Chiasson: