The U.S. Securities and Exchange Commission issued a Monday statement reminding financial firms to strengthen valuation, disclosure and audit practices for private assets, particularly private credit, as those holdings expand and become harder to sell. The statement did not propose new rules, but emphasized that robust policies, procedures and material disclosures should help investors understand fair-value estimates, management judgment and related risks. Private credit holdings in registered fund portfolios rose nearly 60%, from $170 billion in December 2020 to $270 billion in December 2025. Because these individually negotiated loans generally lack quoted secondary-market prices, their fair values commonly depend on significant unobservable inputs and are classified as Level 3 under FASB ASC Topic 820. The staff urged management to obtain timely borrower information, incorporate reasonably available market-participant assumptions, calibrate valuation models to transaction prices at initial recognition and provide entity-specific disclosures about techniques, inputs, uncertainty and portfolio risk. It also reminded managers that using net asset value as a practical expedient is optional investment by investment and requires satisfaction of specified conditions. Auditors should apply professional skepticism, reassess risks as markets change and obtain persuasive evidence supporting management’s estimates. The statement reinforces existing U.S. GAAP and, for certain registrants, Investment Company Act requirements, rather than creating new legal obligations.