Pressure on the private credit industry is highlighting an emerging area of potential regulatory scrutiny and civil litigation – the valuation of illiquid, rarely traded credit assets that are particularly hard to value, and thus vulnerable to extensive second-guessing. That risk is particularly acute in environments that are prone to dramatic fluctuations caused by market events, especially if fund managers’ policies and procedures – often developed during, and in anticipation of, steadier conditions – are not equipped for those circumstances. In a guest article, Jenner & Block attorneys Stephen Ascher, Charles D. Riely and Shailee Diwanji Sharma detail the impetus for scrutiny of private credit valuations; the focus of regulators and private plaintiffs on these issues; and what can be done by those in the industry – ranging from fund managers to their boards and valuation committees – to prepare to address this emerging dynamic. See “SEC Examinations and Enforcement Staff Warn Against Certain Private Credit Practices, Fee and Expense Conflicts (Part Two of Two)” (Feb. 20, 2025).