The UK Financial Conduct Authority (FCA) has outlined key supervisory priorities for private markets, focusing on valuation practices, conflict management, and leverage. Speaking at the Investment Association’s Private Markets Summit on July 2, 2025, FCA Deputy Chief Executive Sarah Pritchard shared findings from a recent review of valuation practices across private equity, private debt, venture capital, and infrastructure. The review found progress in areas like consistent methodologies and third-party validation but noted the need for better governance, conflict management, and ad hoc valuation procedures. These insights will support international initiatives, including work by the International Organization of Securities Commissions and the Bank of England.
The FCA also plans to review how firms managing private assets handle conflicts of interest, aligning this with potential reforms to the UK’s alternative investment fund managers regime. On leverage, Pritchard cited the authority’s role in co-chairing the Financial Stability Board’s working group, stating that, while leverage can drive growth, excessive exposure in opaque markets poses risks. She emphasized improved data quality and infrastructure for regulatory reporting, and noted the FCA’s openness to responsible retail access to private markets through tools like long-term asset funds. Pritchard stated, “We are not standing on the sidelines. We are shining a light in the areas that matter — making sure both the risks and the opportunities are visible to regulators, firms and investors.”
