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The Financial Times

US private equity bids for UK companies switch to dollars

US private equity bids for UK companies switch to dollars

Shift away from pounds acts as protection from Brexit-related currency swings

  • octubre 27, 2019
  • min read

The Financial Times

US private equity bids for UK companies switch to dollars

Foreign currency risk “is definitely top of mind” for US buyout firms doing deals in the UK, said Brenda Rainey, a senior director with Bain & Company’s private equity practice.

“The UK right now is relatively attractive for foreign investors because the pound has weakened, but there’s a lot of uncertainty around Brexit and people naturally look for ways to mitigate the foreign exchange risk,” said Ms Rainey.

Shifting the risk to the seller by buying in dollars can be “a smart move” for buyers, she said.

The Financial Times