Private Equity

Banks should be wary on private credit tie-ups, FCA says

Raft of distribution deals in recent months could raise conflicts, according the official behind the regulator’s landmark review of private markets

‘The whole value chain’ should be discussing risks, Camille Blackburn says
‘The whole value chain’ should be discussing risks, Camille Blackburn says Photo: Getty Images

As tie-ups between banks and private credit continue apace, a leading regulator has warned firms to be wary about exposing themselves to potential conflicts of interest.

A host of banks have struck distribution deals with private credit managers in recent months. The moves follow banks losing out on deal work because regulations have hampered their lending appetite and independent private credit firms step in to fill the gap.

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