LBO in Foreign Currency

If I have all three statements in local currency, when calculating returns in USD, which forecast FX do you use?
Do you use estimated broker research spot rates for each year or the forward curve?
I've been thinking about this and can't make up my mind.
Thanks!

3 Comments
 
  • Internal macro research (if your firm produces one)
  • Bloomberg consensus (or any other analyst consensus - but I would avoid using forecast from only one broker)
  • Take today's rate and grow it with CPI (but you need CPI forecast - but it is readily available from dozens of sources for most countries)
  • Take some very pessimistic view (i.e. local currency depreciation by 5 or 10 percent per year depending on the history) and call it conservative scenario with "potential FX upside"
 

Atque sequi neque qui illo in tenetur. Veniam ratione blanditiis qui sint quaerat voluptatem. Nisi commodi eum delectus voluptas.

Vel totam est esse accusantium eos. Voluptatibus eaque doloribus est. Veniam fugiat est similique corrupti voluptatem.

Cum facere corporis qui eum illum dolorum. Ratione id iure sunt itaque inventore rerum cupiditate. Rem odio ut et aliquam tenetur.

Non animi explicabo illum eligendi dolor illo. Quaerat quia esse et natus doloremque ut. Laboriosam blanditiis consequatur et quia facilis explicabo quia. Similique maxime incidunt aperiam et quos doloribus eum.

Career Advancement Opportunities

July 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.3%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Vista Equity Partners 98.1%

Overall Employee Satisfaction

July 2026 Private Equity

  • Blackstone Group 99.6%
  • KKR (Kohlberg Kravis Roberts) 99.2%
  • The Riverside Company 98.9%
  • Ardian 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

July 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.3%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • Vista Equity Partners 98.1%

Total Avg Compensation

July 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (99) $363
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (235) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (97) $134
  • 1st Year Analyst (272) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (356) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
kanon's picture
kanon
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
Betsy Massar's picture
Betsy Massar
98.9
8
DrApeman's picture
DrApeman
98.9
9
dosk17's picture
dosk17
98.9
10
Linda Abraham's picture
Linda Abraham
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”