Navigating the opaque but evolving world of FX execution

A series of market-moving events in recent years has placed the importance of having a FX strategy firmly back in the spotlight. It would be easy to think that these are one-off events, that geopolitical uncertainty and currency volatility will calm down. But, in fact, FX volatility is a constant.

Despite this significant risk, many private equity firms with currency exposures have given FX policy very little consideration. And those that have might still suffer from a lack of transparency when it comes to fees, as well as from improper infrastructure for best execution.

This paper is designed to highlight the importance of FX to private equity firms, shine a light on the issues they face in achieving best execution and provide them with practical steps to improve their FX processes and reduce their costs.