Private Equity

Funds almost double sterling hedges ahead of December election

There was a 92% increase in the notional value of sterling/euro hedges in the first half of 2019, compared with the same period in 2018

Britain's Prime Minister Boris Johnson
Britain's Prime Minister Boris Johnson Photo: Getty Images

UK-based private equity firms are starting to lock in the current value of the pound as they try to profit from the weakened currency, which has been under pressure since the Brexit vote of 2016.

The findings from investment bank Investec CIB come just weeks ahead of a December general election which will decide the fate of the UK’s relationship with the European Union.

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