The Financial Conduct Authority has identified several areas of improvement in the way some firms manage governance, oversight and conflicts of interest in their private markets strategies.
Private markets have grown significantly in recent years, with firms developing increasingly complex business models, launching investment strategies, entering joint ventures and growing through acquisitions, according to the regulator. However, an FCA review focused on private equity, private credit and real estate firms, published on Friday (23 October), found firms vary in how well they identify and manage conflicts of interest. Although many companies demonstrated effective governance, strong conflict identification processes and a clear focus on investor outcomes, the FCA found s...
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