SEC Officials Address Fair Value Rules for Private Assets

The U.S. Securities and Exchange Commission's Chief Accountant Kurt Hohl and Brian Daly, Director of the Division of Investment Management, jointly released a statement addressing fair value measurement and disclosure considerations for private assets, signaling heightened regulatory attention to how investment funds value holdings that do not trade on public markets.

Fair value accounting for private assets has long presented challenges for fund managers, auditors, and regulators alike. Unlike publicly traded securities, which carry readily observable market prices, private investments — including private equity stakes, private credit instruments, and other illiquid holdings — require firms to apply judgment-intensive methodologies that can vary significantly across the industry.

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The joint statement from two senior SEC officials underscores the agency's continued focus on transparency and consistency in how registered funds report the value of private holdings to investors. Disclosure quality in this area has drawn scrutiny as retail investor exposure to private markets has grown substantially in recent years through interval funds, business development companies, and other vehicles.

By issuing the guidance together, the SEC's accounting and investment management divisions signal a coordinated approach — one that touches both the technical accounting standards governing valuation and the broader investor protection framework that governs fund disclosures. Fund boards, valuation committees, and external auditors are among the parties likely to review the statement closely for practical implications.

The full details of the agencies' valuation and disclosure expectations are contained in the official statement. Continue reading at Speeches and Statements.