BOE Warns on ‘Struggling’ Private Equity-Backed Firms
- Sector also faulted by BOE for poor risk management practices
- Central bank comments in biannual Financial Stability Report
The BOE and other UK regulators have long been concerned about risks in the private equity market.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
The Bank of England warned that more private equity-backed firms are “struggling” as higher interest rates put pressure on the opaque industry that has swollen to $8 trillion globally.
In its twice-yearly Financial Stability Report, the BOE also rebuked lenders and others in the private equity market for poor risk management practices, in an escalation of the UK’s bid to tame risks in the sector.