Lucilla Herrmann

In many private equity deals the new business is like an orphaned company. In the past they had a parent company to take care of all the treasury risks and cash management. Now they need hand-holding through the initial set up period. This often starts with interest rate hedging.

I like to talk to all the key parties to understand their aims. Though there will always be contrasting views, there will be a best compromise for management, investors and banks that also fits our past experience of these deals.

Most importantly, the client needs to feel they've got a hedge that works and that they understand. That way, they can get on with running their business without having to worry about managing this risk.

It’s satisfying when I manage to explain a complicated process in plain English with no jargon. Then it can be understood not just by the financial team, but by the board. It allows my client to take the final decision confidently.