PRA: Thematic review of private equity financing
24 Apr 2024 (UPDATED: 13 Mar 2026)
United Kingdom
1 min read
PRA recently concluded a thematic review of firms’ private equity financing risk management frameworks and has published the text of a “Dear CRO” letter to banks included in the review. The review specifically looked at the adequacy of banks’ risk management frameworks that govern their private equity linked financing businesses and related derivatives exposures. CROs are asked to review the findings and assess against current practices at their firms. PRA has also published the text of a speech by Rebecca Jackson, in which she sets out the findings of the review, noting that the review identified the trends of “creeping leverage, large exposures, complicated structures, and poor risk aggregation”.