A considerable number of funds raised across private markets are US Dollar- or Euro-denominated. If you participate in these funds, you may have inherent currency exposure through your co-investments and carried interest distributions.
If you’re looking to leverage this foreign currency income or make a trade, you could benefit from private banking with integrated Foreign Exchange support. At Investec we have a team that specialises in working with private equity professionals. Here’s how we can potentially help.
Q) How do you manage my unique income profile?
Cameron: We work with individuals who invest in private markets, including those operating in private equity, private debt, real estate, infrastructure and venture capital and this means we understand the intricacies of your income, including co-invest returns and carry distributions.
By taking the time to understand where you’re at in any fund lifecycles, we can work proactively to manage FX trades to save your time, provide peace of mind, and add value. We also offer instant-access cash deposit accounts in 15 currencies, including interest-bearing EUR and USD accounts.
Q) Can I secure a Foreign Exchange (FX) rate, ahead of receiving a bonus or carry?
Greig: For those looking to hedge future currency exposure, we offer FX Forward contracts, which can be used for transactions up to 24 months in advance. For example, one private equity professional wanted to secure the current exchange rate ahead of receiving his carried interest distribution in dollars, in Q4. Forward contracts offer certainty over the rate, as well as the ability to capture potentially favourable market movements, prior to having the funds available.
Where the exact date of a payment is not yet known, we offer Open Forwards which allow a trade to be made within a period of time.
By taking the time to understand where you’re at in any fund lifecycles, we can work proactively to manage FX trades to save your time, provide peace of mind, and add value.
Q) Can I make foreign currency payments using online banking?
Greig: Yes, our private bank clients can make international payments worth up to £100,000 using Investec Online banking or the Investec mobile app, for added convenience.
Q) How much do you charge?
Greig: Our fee structure is straightforward. We charge a margin on the live market rate and this is built into the rate we offer; there are no additional charges or fees from the bank. Our margin parameters may vary for online transactions when a live rate is not available. Given their dependency on the financial markets, it should be noted that exchange rates move very frequently.
Q) What factors are currently influencing exchange rates?
Greig: The key theme in financial markets has been the monetary policy response to inflation, but with price pressures cooling and central banks potentially nearing – or even at – peak rates, attention has turned to the health of underlying economies. With US Treasuries nearing multi-year highs and the US economy looking more resilient than its counterparts, we’ve seen the US dollar outperform of late.
Q: How long does it take to open an Investec Currency Access account?
Cameron: It usually takes approximately 15 minutes to open an account with Investec and you can apply online.
A dedicated Foreign Exchange dealer is assigned on request and will join us in building a long-lasting relationship with you. We specialise in working with clients with an annual income of at least £300,000 and a net worth of £3m.
We also provide other services as part of our private banking experience including bespoke mortgage lending.
For more information about how we can help you with your private banking needs, please get in touch today.
Minimum eligibility criteria and terms and conditions apply.
You can only book an FX Forward which is for an underlying personal or commercial spending purpose. You cannot book an FX Forward for investment or speculative purposes, for example in order to achieve a gain based on movements in exchange rates. Also, you cannot book an FX Forward on behalf of any other person. Additional terms and eligibility criteria apply for FX Forwards.
Investec residential mortgages are only available for residential properties in England or Wales and are primarily available to UK residents and subject to eligibility. Your property may be repossessed if you do not keep up repayments on your mortgage.