Deal Contingent

Financial risk arising from a new investment, acquisition, merger or IPO can be challenging to effectively hedge.

A deal contingent hedge is a cost-effective solution to cover these risks and allows the client to avoid hedge termination costs as the hedging agreement dissolves if the transaction falls through as a result of pre-defined conditions precedent (CPs) not being met.

Since deal contingent derivatives are tailor-made to each transaction, pricing is, by definition, less transparent than for vanilla products. Strict protocol and process management between competing banks leads to optimal outcomes.,

Deal contingent hedging is required during the intensive period around the exchange, when stakeholder time is scarce and expediency is critical.

From designing an optimal hedging strategy to implementation with competitive pricing, our experience and contacts in the market mean we are able to offer a streamlined and transparent process with a quick turnaround.

Leading Experts

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Benoit Duhil de Benaze Director

T: +44 (0)207 493 3310
Email Benoit

Joe Bailey Associate Director

T: +44 (0)207 493 3310
Email Joe

Jackie Bowie Group Chief Executive Officer

T: +44 (0)207 493 3310
Email Jackie

Gregory Curtis Associate

T: +44 (0)207 493 3310
Email Gregory

Recent insights

Success stories
Stakeholder management for syndicated LBO
Private Equity August 2018
Success stories
FX deal-contingent hedging for a large PE fund
Private Equity August 2018

Want to know more about Hedging Products?

See our explanations of some of the more commonly used hedging products for interest rates, foreign exchange and commodities.