KPMG warned Guggenheim Partners about weak internal controls within its business last year, identifying strains in Mark Walter's empire months before a US federal probe into his insurance holdings became public. The Big Four auditor identified shortcomings linked to how a subsidiary of Guggenheim's $367bn asset manager recognised hundreds of millions of dollars in revenue, according to people familiar with the matter. The assessment came after a whistleblower flagged concerns about the unit's accounting practices in April 2025 regarding $275mn in revenue.

KPMG initially identified a control deficiency during its audit of Guggenheim Private Investments' 2024 financials and later found a material weakness in 2025 reporting. Despite these issues, KPMG signed off on the company's accounts with unqualified opinions. Guggenheim told the FT that it acted appropriately and professionally, noting it worked with auditors to ensure practices were consistent with accounting standards.

Pressure on Walter's businesses intensified after insurers controlled by the billionaire revealed in June they had loaned billions to other parts of his empire while misclassifying those loans. US prosecutors are probing the insurers owned by Walter's holding company TWG Global. Walter, Guggenheim's chief executive with stakes in the Los Angeles Dodgers and Chelsea Football Club, has been raising cash, including a deal to sell his majority stake in the LA Lakers at a $12.5bn valuation.

Guggenheim Private Investments drew renewed investor attention after GIH Borrower omitted advisory fees from its second-quarter 2026 results, causing a sharp drop in revenues and profits.