Financial News quotes Nathan Lightman on the upcoming FCA review of private market valuations
The Financial Conduct Authority (FCA) is set to kick off a review of private market valuations amid a rising interest rate environment and an economic downturn that is putting pressure on private equity firms and their portfolio companies.
Nathan Lightman, Senior Associate, comments for Financial News:
Historically, the FCA hasn’t looked too closely at private company valuations, but with interest rates rising, and debt becoming more expensive, that looks set to change. Fund managers which hold off-market assets will need to have robust valuation processes in place, to avoid the embarrassment of any FCA interventions where it doesn’t think processes are good enough. The usual practice of valuations on a quarterly basis may no longer be sufficient – watch this space!
