For over a decade, Sunrock Capital has provided balance sheet advice to leading global firms. Advisory Services is the focal point for delivering the firm's advisory capabilities to clients. Combining our asset management and risk management experience, our team offers capital market expertise, a fiduciary culture centered on client interests, and an ability to deliver strategic counsel to top executives. Clients include insurance companies, depository institutions, pension plans, foundations, endowments, mortgage banks, and non-financial corporations.
Managing complex capital market exposures on balance sheets has become a major challenge for CEOs and CFOs. Recent financial stresses, such as high interest rate volatility, yield curve shifts, credit surprises and credit spread volatility, have added to these pressures. The Sarbanes-Oxley Act of 2002 has brought firms' financial risks into sharper focus. A regulatory shift toward mark-to-market accounting further complicates the balance between capital market volatility and shareholder desire for earnings stability.
Senior executives need an advisor who can help solve financial problems not just as isolated technical issues, but in the context of business objectives. In recognition of these broad client challenges, our services include but are not limited to: valuation, hedging, balance sheet advisory and diagnostics, overlay strategies, asset allocation and investment strategy, restructurings and dispositions.
Sunrock Capital's Advisory Services team offers solutions in the following areas of expertise:
Portfolio Risk Management
For clients interested in managing specific risks in capital market portfolios, we analyze risk profiles (e.g., parametric risk analysis, value-at-risk, stress testing), assess current risk management functions against best practice, and advise on hedging strategies and execution. Where needed, we help restructure the portfolio or advise on strategic sales and purchases.
Balance Sheet Strategy
Many of our clients are faced with managing balance sheet risk across multiple portfolios or businesses. In financial conglomerates, for instance, it is not uncommon to find that different businesses use differing and even conflicting risk frameworks for capital market exposures. Sunrock Capital assists these clients in developing unified frameworks that align objectives and risk constraints of business units and the enterprise as a whole.
Enterprise Risk Alignment
Some clients seek a partnership in evaluating their fundamental objectives and risks. In response, Sunrock Capital works with clients to define benchmarks for asset and liability portfolios that fit within their corporate strategy. In tandem, we measure the risks embedded in these assets and liabilities and shape risk limits and guidelines consistent with client objectives.
Case Studies
A major depository must adapt how it manages its core mortgage exposure in light of industry consolidation, new accounting policies, and capital market pressures. The client's top management engages Sunrock Capital to direct the review.
Balance sheet volatility in a financial subsidiary persuades a Fortune 500 corporation to search for strategic alternatives that reduce the corporation's capital market exposure. The corporation retains Sunrock Capital to lead a potential sale.
A leading global firm discovers poor balance sheet management in a distressed subsidiary recently acquired. Rather than immediately selling the portfolio at depressed prices, Sunrock Capital guides the client to an orderly, paced liquidation at superior prices. | 
