SEC Issues Warning on Valuing Hard-to-Price Private Assets

The alert lands squarely on the seam between private credit's growth and the accounting assumptions that support it. Firms holding illiquid positions now face sharper scrutiny of how they mark those books, which matters most where valuations feed into reported performance or collateral. Whether the guidance hardens into examinations or disclosure demands is the open question, and the practical test is whether valuation methodologies get more transparent as a result.