The Validus View

Hedging in Practice: What the Data Is Telling Us

In this episode of The Validus View, Kevin Lester is joined by Nirvani Sookdeo and Pamela Youssef to discuss how hedging practices are evolving, drawing on insights from Validus’ latest report drawn from data from hundreds of private capital funds. The conversation explores how managers are approaching key decisions in their hedging programs such as instrument selection, hedge tenor and liquidity management. While FX forwards remain the most widely used tool, the discussion highlights how strategies vary significantly depending on asset class, expected returns and fund structure. Looking ahead, the episode also considers how structures such as open-ended funds are influencing hedging decisions. With greater focus on FX exposure, real-time data and how hedging programmes are managed, managers are increasingly looking to build more flexible hedging approaches that can adapt to changing market conditions. Takeaways * Hedging is now a core part of portfolio construction, not just a defensive tool * The impact of FX exposure on returns can vary significantly depending on fund structure, exposure levels and asset class * FX forwards remain the most widely used hedging instrument due to their cost efficiency, with options used more selectively * Liquidity risk is a key driver of hedging strategies, particularly in relation to mark-to-market movements and collateral requirements * Open-ended fund structures are pushing managers toward more flexible, shorter-dated hedging strategies * Data quality and real-time visibility remain key challenges, with increasing focus on technology-driven solutions

2026 Market Outlook: What Matters for Private Capital

The playbook for building portfolios is changing fast. Diversification strategies that worked for years are breaking down, volatility is back and geopolitical tensions are forcing investors to rethink everything from hedging strategies to where they hold their assets. In this episode, CEO Kevin Lester sits down with Kambiz Kazemi (Chief Investment Officer) and Shane O'Neill (Global Head of Capital Markets) to break down Validus's 2026 Risk Outlook [https://www.validusrm.com/news-insights/validus-2026-risk-outlook/]. They dig into developments that are already setting the tone in 2026, from Kevin Warsh's appointment at the Fed to why we are already seeing adjustments to FX hedges. The conversation covers gold's surprising role right now and how AI is moving beyond tech stocks to reshape entire economies. In a look ahead at deeper structural shifts: the discussion veers to why the US, Europe and China are moving at different speeds, how labour markets are being redrawn and why capital controls might become a real concern for global investors. View the episode for a practical look at navigating markets when the playbook is being rewritten. Key highlights 1. How the Fed's balance sheet decisions could move markets more than rate cuts 2. What the rally in gold and silver tells us about what investors are really worried about 3. Why clients are rethinking their FX and interest rate hedging strategies as volatility picks up 4. How artificial intelligence is starting to influence productivity, jobs and inflation - not just stock prices 5. Why rising geopolitical tensions mean investors need to consider the jurisdiction in which their money sits, not just what it's invested in

The Smarter Way to Manage Fund Finance

Fund finance has become one of the fastest evolving and most operationally demanding areas of private capital. As facilities grow in scale and complexity and as liquidity, regulation and lender dynamics continue to shift, managers are increasingly looking for smarter, more reliable ways to manage the operational burden.   In this episode of The Validus View, CEO Kevin Lester speaks with Laila Ismail, Fund Finance Advisory Associate and Conor Murray Product Lead, Fund Finance Ops about how fund finance has transformed in recent years, why operational challenges have intensified and how technology and expertise together are reshaping the way managers run their facilities.   The conversation traces the rise of fund finance from a “nice-to-have” to a critical tool for liquidity and portfolio flexibility, and explores how new entrants, tighter pricing and more bespoke structures are redefining the market. Kevin, Laila and Conor then share the story behind Fund Finance Ops, a purpose-built operating model developed in collaboration with clients to streamline processes, reduce manual risk and offer real-time visibility across facilities.   Looking forward, the team discusses how data, integration and AI will influence the next era of fund finance operations and why scalable, technology-enabled infrastructure is becoming essential for managers navigating an increasingly complex private markets landscape.   Key Highlights * How fund finance has evolved from a convenience to a strategic necessity for private capital managers * Why liquidity uncertainty, lender behaviour, and market structure have accelerated the need for more efficient operational processes * The story behind Fund Finance Ops: how client demand, advisory insight, and technology development converged * Real-world operational challenges: reliance on spreadsheets, reconciliation gaps, and growing facility volumes * How real-time data and shared visibility help sponsors strengthen lender relationships and negotiate better outcomes * The role of technology and AI in improving accuracy, documentation review, and scalability * What the next chapter of fund finance will require as facilities expand, structures become more bespoke, and regulatory scrutiny increases

15 Years of Validus: From Startup to Global Risk Advisory Leader

Fifteen years ago, Validus was founded with a simple but ambitious goal: to bring sophisticated risk management and hedging expertise to the private capital sector. In this special anniversary episode of The Validus View, CEO Kevin Lester is joined by Marc Cogliatti, Head of Market Risk Strategies (UK), and Haakon Blakstad, Chief Commercial Officer (Oslo), to reflect on the firm’s journey from a small startup in Windsor to a global advisory and technology leader. Together, they discuss how macroeconomic shifts, from the global financial crisis and Brexit to the rise of private credit, have shaped both the industry and Validus itself. The conversation explores how the firm’s services and technology have evolved in tandem with client needs. Looking ahead, the trio share their perspectives on the opportunities and challenges facing private capital in a rapidly changing market, and how Validus continues to evolve: expanding across geographies, embracing technology and remaining true to its entrepreneurial roots. This episode is both a look back at how far Validus has come and a look forward at the future of risk management in private markets. Key Highlights * The story of Validus’ growth from a startup to a global partner for the private capital industry. * Lessons from key macro events: from the financial crisis and Brexit to today’s market volatility. * How innovation and technology have shaped the firm’s evolution. * The growing sophistication of private capital firms in managing FX and rate risk. * What the future holds for the industry - and for Validus - as it expands into Asia and beyond.

Is the Dollar’s Reign Under Threat?

The U.S. dollar has long been the cornerstone of global finance, but shifts in markets and investor sentiment are raising new questions about its future. In this episode of The Validus View, CEO Kevin Lester sits down with CIO Kambiz Kazemi to explore the forces shaping the dollar’s trajectory and what they mean for private capital and institutional investors. They discuss the gradual erosion of the dollar’s dominance, why the euro and renminbi have yet to take its place, and whether its safe haven reputation still holds. The conversation also looks at why Canadian institutional investors hedge the dollar less than their global peers, the advantages of a more tactical approach to currency hedging, and the potential economic risks on the horizon. Packed with insights on macro trends and practical takeaways, this is a timely discussion for anyone navigating today’s interconnected markets.