Deaglo aiming to mitigate the FX risk of cross-border transactions

Deaglo, a cross-border advisory firm that provides FX execution and risk management solutions to institutional investors, investment managers, multinational corporations and private clients, has launched. 

The firm says its aim is to ‘educate and empower CFOs to take control of their FX risk and manage their cross-border transactions more effectively’.

Ashley Groves, CEO & Founder, says: “Investors are increasingly looking overseas for deal making opportunities, yet in many cases don’t have the in-house expertise to quantify and manage their FX risk. Unfortunately, traditional approaches to managing these risks, which have beens by the banks, are opaque, cumbersome and expensive, and as such, have become obsolete. Deaglo was founded with the sole purpose of educating CFOs and their teams, and providing them with a clear plan and the appropriate cutting-edge analytical tools to make cross-border transactions effortless.” 

Deaglo provides firms of any size with a range of solutions, currently available to, or being utilised by, some of the world’s largest investors and corporations. In a recent survey of 100 global private equity deal makers, 45 per cent of them realised deal value through revenue enhancement and 80 per cent of transactions that utilised a formalised approach to creating deal value delivered material returns. Deaglo was launched with the aim of enhancing clients’ revenues and creating deal value through appropriate FX risk management. 

Deaglo’s solutions employ the latest machine learning and algorithmic techniques to simplify and execute cross-border transactions with unparalleled efficiency. Alongside cheaper and more transparent FX execution, and the ability to open a multi-currency account in just one day, Deaglo has seen strong interest for the following solutions:

• Hedging illiquid and exotic currency pairs can be confusing and expensive. Dealgo’s Illiquid FX Proxy Hedging solution uses a unique application of Bayesian regression to identify a basket of currencies with sufficient correlations to act as a proxy, which mirrors the target illiquid currency and is cheaper to hedge. 

• Traditional options hedging strategies offered by the banks to account for deal failure during the due diligence stage of an acquisition are often costly and inflexible. Deaglo’s Deal Contingent Hedging solution limits FX losses or cancellation costs on any type of cross-border acquisition via a proprietary optimum basket hedging tool.
 
• Identifying and quantifying the most efficient portfolio hedge for a portfolio consisting of numerous FX exposures of varying sizes and volatility can be challenging. Deaglo’s Portfolio Hedge Optimisation solution uses the firm’s efficiency frontier analysis to analyse a firm’s recent trades to achieve lower hedging costs. 

• Deaglo’s Hedging Simulations use a first of its kind application of a Monte Carlo analysis to help clients stress test hedging strategies against future volatility, and identify the most suitable hedging products. 

Deaglo was founded by Ashley Groves, who previously led the East Coast region of AFEX, one of the world’s largest non-bank providers of foreign payment solutions. Whilst at AFEX, Groves was instrumental in doubling the regions revenues and developed an expertise in a variety of industries, including private equity, venture capital and real estate. 

Groves is joined by Matthew Fotheringham, who leads the promotion of Deaglo’s cross-border advisory solutions across EMEA, with a particular focus on private fund managers and family offices. Matthew was previously a Vice President at Third Seven Capital, a boutique investment bank serving both growth-oriented and lower middle-market companies. 

Deaglo’s APAC operations, focused on firms making investments and raising money in or from the APAC region, are headed up by Clive Cooper, who has over 13 years’ experience helping investment banks and private equity firms source more deals and operate more efficiently. He joined Deaglo having most recently led worldwide sales teams at SourceScrub, Ansarada and S&P Global.