US Prosecutors Probe Private Asset Market Valuations
Manhattan's top federal prosecutor is questioning private credit and private equity firms regarding the transparency of their asset valuations. Jay Clayton expressed concern over inconsistent marks for identical assets across the marketplace and emphasized the need for greater clarity when managers collect fees based on these internal assessments.
Jay Clayton and federal prosecutors are questioning private asset valuations to address opacity in private credit and private equity markets. The U.S. Attorney for the Southern District of New York told the Bloomberg Global Credit Forum on Wednesday that his office is examining how firms mark securities that rarely trade. This scrutiny follows increased efforts by investment firms and governments to funnel retail investor capital into private assets.
