Private market valuations under the microscope: The talent impact of the FCA review

Blog written by Nathan MacFie our Director of Asset Management at Meraki Talent.

The FCA’s review: setting the scene

In March 2025, the Financial Conduct Authority (FCA) published results of its multi-firm review into valuation practices across private markets. The exercise involved 36 firms spanning private equity, venture capital, private debt and infrastructure who represented around £3 trillion in global assets under management.

The motivation for the review was straightforward. Unlike public markets, where frequent trading provides clear reference points for asset prices, private markets rely heavily on judgement. This subjectivity brings risks for fairness, investor confidence, and potentially even financial stability. The FCA wanted to test whether existing practices were sufficiently robust to withstand scrutiny.

What the FCA found

The review uncovered a mixed picture. Most firms had made efforts to establish valuation committees, but too often these committees lacked the record-keeping and accountability expected of them. Conflicts of interest were often acknowledged, but not always fully addressed or documented. Independence was another recurring issue, with some valuation committees dominated by senior investment professionals rather than a balanced mix of voices able to provide genuine challenge.

Implications for firms

The FCA’s message was clear: valuation is not a side activity, but a core part of the investment process that requires the same rigour as other governance functions. Firms are now expected to strengthen their committees, tighten documentation, and formalise the conditions under which valuations are revisited. Transparency must improve, not only in terms of headline valuations but also the assumptions and judgements underpinning them.

For many, this review has also highlighted a structural skills gap. Few private market houses have dedicated valuation expertise in-house, and yet the regulator’s expectation is that boards and committees will be able to demonstrate independence and challenge.

Building capability and a talent squeeze

As a result, we are already seeing firms create new roles focused specifically on valuation: Heads of Valuation Oversight, Senior Managers in Asset Pricing & Valuation, and Directors of Valuation Governance. These are no longer back-office reporting functions, but senior positions embedded within the business, tasked with designing robust models, ensuring consistent application across funds, and providing challenge to investment teams.

This is placing significant pressure on the talent market. Professionals with experience in illiquid asset valuations, whether in private equity, infrastructure, or direct lending, are suddenly in high demand.

What does this mean from a recruitment perspective?

Salaries and packages are already moving upwards as the talent pool is small and demand is rising fast. Crucially, these roles cannot simply be filled by transferring analysts from public markets; the technical nuances are too great.

For HR leaders in private markets, the implications are clear. If your firm has not yet addressed valuation capability, the time to act is now. Demand for unlisted valuations professionals is growing rapidly, and competition for the best people will only intensify.

At Meraki Talent, we are already working with clients to map this talent landscape, benchmark salaries, and identify leaders who can build valuation oversight teams from the ground up.

How we can help

If you are reviewing your valuation function considering the FCA’s findings or want to ensure your team’s salaries are benchmarked correctly in a tightening market, now is the time to have a conversation with my team at Meraki Talent.

We are currently helping clients navigate this new landscape by mapping where specialist talent sits, advising them on the best ways to attract it, and benchmarking salaries to keep offers competitive.

Our work goes beyond recruitment alone as we introduce senior leaders who can build valuation oversight teams from scratch and provide practical advice to COOs and HR leaders on how peers are structuring functions in response to the FCA’s findings.

I’d you’d like to have an informal chat, please contact me on nathan.macfie@merakitalent.com

About the Author

Nathan MacFie is a Director at Meraki Talent, specialising in Asset Management & Financial Services recruitment. He partners with firms across Private Equity, Alternatives, and Direct Lending to build high-impact teams in a changing regulatory landscape