Regulators at the US Securities and Exchange Commission have zeroed in on private funds valuations, opening exams by asking about individual funds by name as the commission mounts an exams-and-enforcement sweep. An initial request letter obtained by affiliate title Private Funds CFO shows regulators ask an investment company with private and retail fund offerings for two years’ worth of data about their valuation policies and procedures.

Examiners ask about funds by name in opening requests. Enforcement has picked up the scent, too, affiliate title Private Funds CFO has learned. The examination requests specifically target the valuation methodologies applied to private fund assets, signaling a heightened focus on potential mispricing or conflicts of interest.

The SEC’s sweep covers both registered investment advisers and exempt reporting advisers, with particular attention to how firms mark hard-to-value assets like private equity and real estate. Regulators are scrutinizing whether valuations reflect current market conditions, especially after the volatility of recent years.

This enforcement push follows earlier SEC guidance on fair valuation and comes amid broader efforts to increase transparency in private markets. Firms are being asked to provide detailed documentation, including third-party pricing sources and internal valuation committee materials, for both illiquid and liquid holdings.