The chair of Norway-headquartered Skagen Funds has voiced concern about the rapid growth of private markets, claiming opaque valuations could lead to a “potential surprise” that hurts investors.

“There’s no doubt there is tremendous opportunity [in private markets], if you get it right and find the right private equity investor, and as a client you understand what you are investing in,” said Tim Warrington, who became chair of the €6.6bn fund management business in December after almost six-years as its chief executive.