THE GRC NAVIGATOR
Your Bi-Weekly GRC Intelligence Briefing
Issue 2 | 19 May 2025
Executive Summary
Top Story: UK Pension Funds Pledge £50 Billion for Private Assets
On May 13, 2025, seventeen of the UK’s largest pension funds signed the “Mansion House Accord,” committing to invest up to £50 billion ($66 billion) into private markets, with at least half earmarked for UK assets.
KEY ELEMENTS INCLUDE:
◆ Pension providers agree to invest at least 10% of their defined contribution default funds in private markets by 2030
◆ Half of the investments must be allocated to UK assets, including infrastructure, property, and private equity
◆ The Accord doubles the size of commitments made under the 2023 Mansion House Compact, which targeted 5% allocation without UK-specific requirements
◆ Investment will target British businesses, clean energy developments, and infrastructure projects
Fund managers including Aviva, Legal & General, M&G, Phoenix and the Universities Superannuation Scheme have signed the agreement, with some indicating they may exceed the targets.
“This Mansion House Accord will unlock investment in UK private markets while helping deliver better long-term returns and retirements for millions of pension savers.”
— HM Treasury statement, May 13, 2025
Regulatory Updates
PRA Updates on Operational Resilience
In its May 15, 2025 Financial Regulation Weekly Bulletin, the PRA emphasized its ongoing operational resilience work as a critical theme for 2025/26:
◆ Stress Testing: The PRA continues to conduct stress tests for both banking and life insurance sectors to assess resilience to financial shocks
◆ Cyber Resilience: Enhanced threat-led penetration testing to ensure firms are prepared for emerging cyber threats
◆ Critical Third Parties: Ongoing engagement with standard-setting bodies on third-party risk management and critical third-party oversight
DOJ Announces Criminal Enforcement Priorities
On May 11, 2025, the Department of Justice issued a memo titled “Focus, Fairness, and Efficiency in the Fight Against White-Collar Crime,” which was publicly announced at the SIFMA conference on May 12. The memo highlights 10 “high-impact” areas as the focus of its criminal enforcement efforts:
◆ At least three areas explicitly overlap with False Claims Act (FCA) enforcement
◆ Healthcare fraud remains a priority, with focus expanding to equipment manufacturers
◆ The memo signals continued attention to opioid distribution violations across the supply chain
PRA Developments
Bank Rate Reduction
BANKING, CAPITAL MARKETS
The Bank of England’s Monetary Policy Committee reduced the Bank Rate to 4.25% on May 7, 2025, by a 5-4 majority vote. This reduction reflects the Bank’s assessment of improving economic conditions and moderating inflation pressures, as detailed in the Monetary Policy Report published on May 8, 2025.
Solvent Exit Planning Implementation
The PRA confirmed implementation dates for its solvent exit planning policies:
◆ Banking Sector (PS5/24): Will come into force on October 1, 2025
◆ Insurance Sector (PS20/24): Extended to June 30, 2026
These policies aim to ensure firms can exit the market in an orderly manner while remaining solvent, without relying on insolvency or resolution processes.
Fund Launches & Capital Raises
Inflexion Raises Record £2.3 Billion Continuation Fund
INFO | SECTORS: ASSET MANAGEMENT, PRIVATE EQUITY
On May 15, 2025, European mid-market investment firm Inflexion announced the close of its first continuation fund at £2.3bn, marking Europe’s largest-ever multi-asset continuation vehicle. The fund will support portfolio companies including CNX Therapeutics in accelerating their European growth strategies.
Kayne Anderson Secures $2.25 Billion for Energy Income Fund
INFO | SECTORS: ASSET MANAGEMENT, ENERGY
Alternative investor Kayne Anderson closed its third energy income fund at $2.25 billion on May 13, 2025, significantly exceeding its $1.5 billion target. The fundraise demonstrates renewed institutional interest in income-generating oil and gas strategies despite broader energy transition trends.
Actis Raises $1.7 Billion for Infrastructure
INFO | SECTORS: ASSET MANAGEMENT, INFRASTRUCTURE
Sustainable infrastructure investor Actis closed its second long-life infrastructure fund at $1.7 billion on May 13, 2025. The fund is already almost 50% committed, demonstrating strong pipeline in renewable energy and sustainable infrastructure assets.
Recent Major Fund Closes (May 12-16, 2025)
INFO | SECTORS: ASSET MANAGEMENT, PRIVATE MARKETS
◆ Denali Growth Partners: Former Summit Partners executive’s firm secured $400m for its sophomore fund (May 16)
◆ Dynamo Ventures: Generated 4x return as Kline Hill bought into Fund I, while sealing $54m for Fund III (May 16)
◆ Nexa Equity: Software-focused PE house reached $390m hard cap for second fund (May 15)
◆ PX3 Partners: Ex-Rhone Group trio sealed €500m hard cap close for debut fund (May 15)
◆ Northleaf Capital Partners: Canadian investor reached $2.6bn hard cap for fourth infrastructure fund (May 14)
◆ AE Industrial Partners: Raised $418m for oversubscribed aerospace leasing fundraise (May 14)
◆ Adams Street Partners: Secured more than €270m for first Europe-focused VC fundraise (May 13)
◆ Corpfin Capital: Spanish PE firm closed oversubscribed Fund VI on €300m (May 13)
◆ Pemberton: Pulled in €8.4bn across senior loan fund pair and strategic credit vehicle (May 12)
◆ Ara Partners: Surged past goal to reach $800m close on debut infrastructure decarbonisation fund (May 12)
Enforcement Watch
FCA Whistleblowing Program Activity
In data published on May 12, 2025, the FCA reported receiving 281 new whistleblowing reports in Q1 2025:
◆ The regulator took significant action to manage harm in 12 reports (2.6%) – potentially including enforcement action, section 166 skilled person reports, or restrictions on permissions
◆ The FCA took action to reduce harm in 192 reports (41%) – including firm visits, information requests, and compliance attestations
Market Developments
Private Equity Deal Activity (May 12-15, 2025)
Significant transactions announced this week include:
◆ TSG Consumer Partners: Agreed to acquire gym operator EoS Fitness for approximately $1.5bn (May 12)
◆ Blackstone: Made a $200m minority investment in property management software provider Entrata, valuing it at $4.3bn (May 13)
◆ Apollo/DHL: DHL agreed to acquire a significant minority stake in Apollo’s UK parcel delivery company Evri (May 14)
◆ Carlyle/SK Capital: Increased bid for gene therapy developer bluebird bio to $5 per share cash (May 15)
◆ Hellman & Friedman: Initiated sale process for energy software company Enverus, potentially valuing it at $6bn (May 15)
Private Equity Firms Expand Globally (May 13-15, 2025)
INFO | SECTORS: PRIVATE EQUITY
◆ EQT: Expanding its presence in Japan across private capital, infrastructure, and real estate platforms (May 15)
◆ Fortress/Kimmeridge: Both launched new Abu Dhabi offices to partner with Mubadala Investment Company (May 14)
◆ Ares Management: Expanded European presence with new Milan office led by Tyrone Cooney (May 14)
Regulatory Calendar
- 15 May: PRA's Financial Regulation Weekly Bulletin published
- 13 June: Deadline for feedback to DP25/1 on cryptoasset activities
- 16 June: Deadline for feedback to London Stock Exchange discussion paper on AIM
- June 2025: FCA to publish final PISCES rules and open applications for sandbox
- 1 October: PRA's solvent exit policy for banks (PS5/24) comes into force
- June 30, 2026: PRA's solvent exit planning for insurers (PS20/24) comes into force