KKR, Apollo Opt In for First BoE Private Markets Stress Test (2)

The Bank of England launched an exercise to war-game how the private credit and equity industry would respond to financial stress, amid growing regulatory concern over the growth of the sector.

The groundbreaking test will seek to understand how a blow up in private markets would reverberate across the wider financial system. The exercise — known as the System Wide Exploratory Scenario (SWES) — is set to probe how banks and non-banks active in the space would respond to a severe but plausible global downturn, the central bank said Thursday.

That’s at a time when companies are increasingly seeking funding ...