Financial Services
Bank of England's private markets stress test deliberately courts an Armageddon scenario
Source: City AM, 19 Jun 2026
The Bank of England has launched its first-ever stress test of private markets, asking 46 firms — including Goldman Sachs, Barclays, Blackstone, KKR, Carlyle and Oaktree — to model a deliberately severe five-year downturn: interest rates and inflation at 7%, the UK's deepest recession since 2008, and a 35% stock market fall. Michael Moore of UK Private Capital called the scenario “very severe.”
Jiri Krol of the Alternative Investment Management Association welcomed the exercise, arguing it should replace “generalised, anxiety-inducing speculation” about the opacity of private markets with evidence. That's a communications insight as much as a regulatory one: an industry under suspicion can't out-argue its critics, only out-disclose them.
Wherever your sector faces “too opaque” accusations, a rigorous, published methodology will do more for your reputation than any statement defending it. Treat this as a template, not a one-off.