HedgeNX

We enable Private Credit providers to include simple but effective interest rate hedges directly within their loans. All floating-rate loan portfolios contain indirect interest rate risk, but it tends to be elevated in Private Credit. This is because borrowers that otherwise favor more prudent hedging strategies often dilute or decide against hedging altogether, owing to factors specific to Private Credit. Chief among these are the need to fund hedging costs with equity and the administratively burdensome and resource-intensive nature of sourcing a separate derivative transaction with a third-party bank. HedgeNX reduces indirect interest rate risk in Private Credit loan portfolios by encouraging and actively facilitating prudent borrower-level hedging strategies. Our innovative approach eliminates the need for borrowers to fund hedging costs up-front and removes nearly every administrative burden of the hedging transaction itself for borrower and lender alike. It also vastly increases a lending team’s control and visibility over interest rate risk decisions from term sheet to loan repayment. HedgeNX Advisers Ltd. is a Certificate Holder as General Partner of the AIF entity HedgeNX Fund I, LP, a Jersey Private Fund. See hedgenxgroup.com for more.