Case Study: Private Equity Firm protects deal value with Rochford Capital

Private Equity Firm - Customer Case Study

Private Equity Firm worked with Rochford Capital on the sale of an AUD-denominated fund’s New Zealand portfolio company. The transaction was worth about NZD 500 million and involved debt in multiple currencies and associated interest rate swaps, while the firm faced significant foreign exchange risk during the period between agreeing commercial terms and receiving required government approval.

Rochford Capital analysed the risks and implemented a deal contingent forward to protect the private equity firm from FX exposure in a cost-effective way, while also providing independent valuations of the existing interest rate swaps and managing their termination. As a result, the firm reduced potential liability if the deal fell through and exited the swaps efficiently, significantly lowering potential exit costs for the portfolio company.