The price is right-ish
10.03.2025 – Articles
The FCA’s review of valuations in private markets found good practice, however, it found the industry lacking when it comes to independence and expertise. Here we unpick the constructive criticism.
Key themes, findings, and action points from the review
Strengths:
Firms generally follow good practices in investor reporting, documentation, and valuation methodologies.
Many firms use third-party valuation advisers, promoting transparency and consistency.
Areas for improvement:
Conflict of interest management: Firms need better identification and documentation of conflicts of interest in the valuation process.
Independence in valuations: Increased independence is needed within firms’ internal valuation processes.