Analysis-UK pension funds rush to ditch unlisted assets as regulators question valuations

UK pension funds are rushing to sell unlisted assets – often at a discount – because they are overexposed to the opaque $12 trillion global private market as regulators question the true value of investments spanning property to private equity, industry sources say. Global watchdogs are raising the alarm about the value of so-called private market assets, including big infrastructure projects, the paper worth of which has yet to be adjusted downwards while listed markets, such as bonds, have suffered an historic rout due to higher borrowing costs. One sector feeling the impact of owning hard-to-value illiquid investments as financial conditions tighten is the 1.5 trillion pound ($1.8 trillion) defined benefit, or final salary, pension fund industry – which drove a UK market sell-off a year ago.