The UK FCA's review of private market valuations will strengthen governance and investor confidence, says AIMA.

The FCA’s review of private market valuation processes, covering all private markets, including private credit, comes at a critical time for the sector. According to the Alternative Credit Council's Financing the Economy research, private credit has emerged as the fastest-growing segment, surpassing US$3 trillion in assets under management globally.

The review found that private market valuation processes have good practices, but there is some room for improvement, which the AIMA's Alternative Credit Council will play a central role in enabling. 

AIMA's Guide to Sound Practices For Valuation of Investments is available to AIMA members here.

Commenting on the review's findings, Deputy CEO and Global Head of Government Affairs, Jiří Król, said: “We welcome the publication of the review and the FCA’s decision to highlight examples of good practices alongside areas for improvement. This exercise will benefit the industry by raising awareness of potential risks, strengthening good governance and ultimately supporting investor confidence in private markets. We will continue to support investor understanding of valuation practices through regular updates to our Guide to Sound Practices For Valuation of Investments as well as our ongoing Financing the Economy research.”