Regulators set sight on private market fund valuations

Prashant Gupta, Associate Director, Acuity Knowledge Partners, recently spoke to Investment & Pensions Europe, a leading European information source for investors on private markets fund valuation being watch by regulators. The regulatory initiatives announced in recent months, following pressure from investors and the public, could bring about deeper changes to the buoyant private markets industry.

He says, “Admittedly, valuation is one of the most vulnerable areas. Potential for increased volatility, growing fear over the impact of ‘higher for longer’ borrowing costs, and perceived opacity around private market investments and fund reporting are some of the triggers, resulting in regulators becoming more and more uneasy and concerned that the private fund managers and investors might have significantly underestimated the risk in these markets.”