HedgeStar
HedgeStar is an independent financial instrument valuation and hedge accounting services firm serving 400+ financial institutions, corporations, audit firms, and tax-exempt entities with ASC 815/IFRS 9/GASB-compliant outsourcing solutions.
- Company typePrivate
- Founded2004
- HeadquartersEden Prairie, United States
- Headcount11–50
- GTM typeB2B
- OfferingServices
What HedgeStar does
HedgeStar is an independent financial instrument valuation and hedge accounting services firm founded in 2004 (originally as DerivActiv) and headquartered in Minneapolis, Minnesota. The firm provides outsourced hedge accounting, fair value measurement, and derivatives valuation services to financial institutions, corporations, audit firms, and tax-exempt entities, with compliance coverage across ASC 815, ASC 820, IFRS 9, IAS 39, and GASB 53/72/87 standards. Its technology platform includes proprietary effectiveness testing methodologies (regression analysis, dollar-offset method, Portfolio Layer method under ASU 2017-12), automated SOC 1-certified report generation, a cloud-based client portal for mark-to-market and cash flow report delivery, and integrations with LSEG, Kyos, and Hedgebook for market data and risk analytics.
The company's revenue model combines subscription-based outsourced valuation services (reports delivered at frequencies from daily to annual) with professional services engagements for hedge documentation, effectiveness testing, journal entries, and regulatory reporting. Pricing is quote-based and custom, structured around multi-year enterprise contracts. Distribution is direct enterprise field sales supported by an "Expert Consultation" booking system, content marketing through HedgeStar University (NASBA-eligible CPE training, webinars, eBooks), and channel partnerships with Corpay Cross-Border Solutions and GPS Capital Markets for FX execution bundling. The firm is owned by Tril 1 LP, which also controls affiliate Blue Rose Capital Advisors (derivatives execution, Municipal Advisor registration, CTA registration). HedgeStar serves over 400 global clients managing more than $100 billion in notional under management.
HedgeStar firmographics
Firmographics- Name
- HedgeStar
- Legal name
- HedgeStar, Inc.
- Website
- https://hedgestar.com
- Company type
- Private
- Founded year
- 2004
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- HedgeStar is an independent financial instrument valuation and hedge accounting services firm serving 400+ financial institutions, corporations, audit firms, and tax-exempt entities with ASC 815/IFRS 9/GASB-compliant outsourcing solutions.
- Ownership category
- akta.pro rank
HedgeStar industry classification
Industry- Product category
- Financial Advisory Services
- NAICS
- Portfolio Management and Investment Advice (52394)
- SIC
- Investment Advice (6282)
- akta.pro primary industry
- Pricing & Valuation Services (Fixed Income, OTC, Derivatives) (FSAFAIAF)
Keywords
Where HedgeStar is headquartered
LocationHeadquarters
- HQ city
- Eden Prairie
- HQ country
- United States
- HQ region
- North America
Offices4 records
Markets served
HedgeStar business model
Business model- GTM type
- B2B
- Offering type
- Services
- Cost components
- Personnel, Operations, Technology or R&D, Marketing or Sales, Infrastructure
Revenue model
- Outsourced Valuation Services: Independent financial instrument valuation services provided on subscription basis with reports delivered at frequencies from daily to annual. SOC 1-certified process delivers audit-ready valuations to clients.
- Hedge Accounting Services: Independent hedge accounting services including documentation, effectiveness testing, journal entries, and reporting. Delivered as outsourced professional services to financial institutions, corporations, and tax-exempt entities.
- Training and Education: HedgeStar University provides derivative accounting training, CPE credits through NASBA, workshops, on-site training, and webinars. Customized programs delivered by CPAs and industry professionals.
- Derivatives Execution Advisory: Tailored derivatives execution advice including ISDA documentation review, interest rate risk management strategies, and competitive pricing coordination. Provided through affiliate Blue Rose Capital Advisors.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Subscription | Multi-year contract | Custom enterprise pricing based on service scope and complexity |
Go-to-market motion2 records
Distribution channels4 records
Marketing channels5 records
HedgeStar product offering
Product offeringCore offering
HedgeStar provides independent financial instrument valuation and hedge accounting services to organizations that use derivatives for interest rate, foreign exchange, and commodity risk management. Its offerings cover outsourced hedge accounting documentation and effectiveness testing under ASC 815, IFRS 9, and GASB standards, mark-to-market and fair value valuation across all three fair value hierarchy levels, FX hedging strategy and reporting, derivatives execution advisory, and related risk management consulting.
Product overview
HedgeStar is an independent financial instrument valuation and hedge accounting services firm founded in 2004. The company operates a platform-plus-services model offering four core service lines — Hedge Accounting Services, Financial Instrument Valuation Services, FX Services (via Corpay partnership), and Derivatives Execution Services (via affiliate Blue Rose Capital Advisors) — supported by three add-on advisory modules: Financial Risk Management Consulting, Treasury Software Advisory, and Financial Litigation Support. A complementary training arm, HedgeStar University, delivers workshops, webinars, and educational content including the ABCs of Interest Rate Risk Management eBook. The company serves four primary sectors: Financial Institutions, Corporations, Audit Firms, and Tax-Exempt Entities, adhering to accounting standards including ASC 815, ASC 820, IFRS 9, IAS 39, GASB 53, GASB 72, and GASB 87.
Differentiator
Problem solved
Functional benefit
Products and services
- Hedge Accounting Services Full-service hedge accounting outsourcing covering ASC 815 and IFRS 9 compliance, including hedge designation memoranda, effectiveness testing (regression analysis, dollar-offset, scenario analysis), journal entries, regulatory and stakeholder communication, and audit-ready reporting for financial institutions and corporations.
- Financial Instrument Valuation Services Independent mark-to-market and fair value assessments for financial instruments across Level 1, 2, and 3 of the fair value hierarchy. Covers derivatives, municipal bonds, foreign debt, illiquid securities, structured products, and cryptocurrencies, adhering to ASC 820, IFRS 13, and GASB 72.
- FX Services Foreign exchange hedging strategy and execution support delivered in partnership with Corpay Cross-Border Solutions. Covers FX hedge designation memo preparation, effectiveness testing, hedge accounting reports, general ledger reporting, and scenario analysis aligned with global accounting standards.
- Derivatives Execution Services End-to-end derivatives execution advisory provided by affiliate Blue Rose Capital Advisors. Includes ISDA documentation review and negotiation, interest rate risk management strategy evaluation, competitive pricing coordination, and benchmarking against internal models. Covers interest rate swaps, futures, options, and exotic derivatives.
- Financial Risk Management Consulting Enterprise risk management framework design covering governance setup, risk scorecard development, process/risk/control mapping, risk policy development, evaluation of existing risk management programs, and custom stakeholder training on derivatives and hedging.
- Treasury Software Advisory Services Advisory service guiding clients through treasury and risk management software selection via RFP process, system tailoring, implementation, and staff training.
- Financial Litigation Support Services Expert witness and litigation support for market manipulation, fraud, and market anomaly cases, including forensic assessment, quantitative analysis, instrument valuation, and deposition preparation.
- HedgeStar University Expert training and education program covering risk management strategies, derivative valuation techniques, and accounting for derivatives. Delivered through on-site training, multi-day workshops, webinars, and a library of articles, white papers, eBooks, and toolkits. Instructors include CPAs and industry professionals with over 75 combined years of experience.
Quantifiable outcome
- ABC Depository achieved 92-96% hedge effectiveness ratios, generating $1.2M in offsetting hedging gains
- +2 more outcomes
Companies that use HedgeStar
Customer profileNamed customers2 records
Segments4 records
Ideal customer profiles3 records
HedgeStar technology and API
TechnologyTechnology focussed No
API detail
- Has API
- No
- API docs
- API detail
Core technology
AI maturity
App detail
Integration4 records
Feature5 records
HedgeStar partnerships and signals
Strategic signalPartnerships
Three partnerships are on record, tiered core.
- GPS Capital MarketscoreGPS Capital Markets provides premier foreign currency (FX) strategy services including balance sheet hedging, cash flow hedging, intercompany netting, and cross border payments. HedgeStar provides hedge accounting and FX accounting support to clients referred through the partnership. Partnership announced November 2024.
- Corpay Cross-Border SolutionscoreCorpay develops FX hedging and risk management strategies including cost/benefit analysis and implementation support. HedgeStar handles the accounting and reporting side including hedge designation memo preparation, effectiveness testing, and general ledger reporting. Partnership provides comprehensive FX strategy and hedge accounting services.
- Blue Rose Capital AdvisorscoreBlue Rose Capital Advisors is an affiliate of HedgeStar under common ownership (Tril 1 LP). Provides derivatives execution services including ISDA documentation, interest rate risk management strategies, and competitive pricing coordination. Registered as Municipal Advisor with SEC, MSRB, CFTC, and NFA.
Scale indicators4 records
Recent moves6 records
Expansion highlights5 records
HedgeStar competitors and assessment
Company assessmentDirect peers
- Chatham Financial: Chatham is the largest independent advisor in interest rate hedging, commodity hedging, debt advisory, and hedge accounting—HedgeStar's most direct scaled competitor across all four core services. Both firms sell independent, auditor-accepted derivative valuations and hedge effectiveness testing.
- HedgeTrackers: HedgeTrackers is a direct competitor in outsourced hedge accounting and derivative valuation services for ASC 815/IFRS 9 compliance, and was a prior employer of HedgeStar Senior Manager Joe Nadjar. The two firms compete for the same financial institution and corporate treasury wallet share.
- Validus Risk Management: Validus provides independent FX and treasury risk advisory plus hedge accounting support for corporates and financial institutions. It overlaps with HedgeStar's FX and corporate hedging practices and competes for the same outsourced hedging program engagements.
Broad incumbents
- PwC (Advisory): PwC's Risk and Regulatory practice includes hedge accounting advisory and derivative valuation teams and absorbs work from audit mandates. Former HedgeStar Managing Director Tim Potter's PwC background is direct evidence of the talent pipeline overlap between these firms.
- Ernst & Young (EY): EY's Financial Accounting Advisory Services include hedge accounting compliance and derivative valuation advisory. As one of the Big 4, EY is a scaled competitor with greater bench depth that can absorb HedgeStar-style mandates at large enterprise clients.
- KPMG (Audit & Advisory): KPMG's audit and advisory practices provide ASC 815/IFRS 9 hedge accounting support and derivative valuation services. While broader in scope, KPMG competes directly with HedgeStar for hedge effectiveness testing and fair value measurement work at mid-market and large enterprises.
- Deloitte (Advisory): Deloitte's audit and risk advisory practices offer ASC 815 and IFRS 9 advisory alongside audit services. The full-service Big 4 delivery model competes with HedgeStar for outsourced hedge accounting work and can bundle advisory with existing audit relationships.
Others
- Kyriba: Kyriba offers treasury management software with exposure management and hedge accounting modules. While it intersects with HedgeStar's treasury advisory and risk management consulting products, Kyriba is primarily a software platform that HedgeStar positions around rather than directly competes with.
- Numerix: Numerix provides derivatives pricing and analytics infrastructure that underpins many independent valuation engines. It is adjacent rather than directly competitive: Numerix sells analytics and infrastructure to firms like HedgeStar rather than competing for the same outsourced accounting engagements.
Emerging players
- Hedgebook: Hedgebook is a SaaS-based hedging and risk management platform with audit-trail and effectiveness testing capabilities that overlap with HedgeStar's technology-influenced service delivery. Hedgebook is also listed as a HedgeStar product partner, indicating an indirect go-to-market relationship.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat6 records
Key risks6 records
Key highlights6 records
Customer concentration
HedgeStar social profiles
Digital presenceHedgeStar compliance and trust
Trust signalCompliance1 record
HedgeStar financial estimates
Financial estimateRevenue estimate
Valuation estimate
HedgeStar leadership team
Management profileNumber of profiles
Profiles9 records
HedgeStar subsidiaries and ownership
Company hierarchySubsidiaries1 record
HedgeStar funding detail
Funding detailFunding overview
Funding rounds
Investors
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
HedgeStar M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about HedgeStar
What does HedgeStar do?
HedgeStar provides independent financial instrument valuation and hedge accounting services to organizations that use derivatives for interest rate, foreign exchange, and commodity risk management. Its offerings cover outsourced hedge accounting documentation and effectiveness testing under ASC 815, IFRS 9, and GASB standards, mark-to-market and fair value valuation across all three fair value hierarchy levels, FX hedging strategy and reporting, derivatives execution advisory, and related risk management consulting.
Is HedgeStar a public or private company?
HedgeStar is a private company. It is classified as corporate owned and is currently operating.
When was HedgeStar founded?
HedgeStar was founded in 2004. It employs 11 to 50 people.
Where is HedgeStar based?
HedgeStar is headquartered in Eden Prairie, United States, in the North America region.
How does HedgeStar make money?
Four revenue lines are on record. Outsourced Valuation Services are the primary driver. The others are hedge Accounting Services, training and Education and derivatives Execution Advisory.
Who are HedgeStar's main competitors?
Direct peers on record are Chatham Financial, HedgeTrackers and Validus Risk Management. Broad incumbents are PwC (Advisory), Ernst & Young (EY), KPMG (Audit & Advisory) and Deloitte (Advisory). Others are Kyriba and Numerix. Hedgebook is listed as an emerging player.
Does HedgeStar have an API?
No public API is recorded for HedgeStar.
What industry is HedgeStar in?
HedgeStar's product category is Financial Advisory Services. Its primary akta.pro industry code is FSAFAIAF, Pricing & Valuation Services (Fixed Income, OTC, Derivatives). Its NAICS code is 52394 and its SIC code is 6282.