BOE interest rate hike to impact valuations

by Alice Murray 4 August 2022

The Bank of England has raised interest rates by 0.5% to 1.75%, marking the highest rate since the global financial crisis.

For private equity, the increase is expected to put pressure on valuations as well as IRR targets. Sam Webster, partner at Reed Smith, commented: “I think we can expect to see the interest rate hike exert some downwards pressure on valuations, though how much is difficult to forecast given the broader market conditions.

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