In remarks delivered at the Bloomberg Global Credit Forum on June 3, 2026, Jay Clayton, the U.S. Attorney for the Southern District of New York (“SDNY”), signaled increased scrutiny of private-market valuations. While emphasizing the importance of private credit to the U.S. economy, Clayton identified inconsistent asset valuations as a key area of concern and called for greater transparency around firms’ valuation practices. He specifically noted that significant discrepancies in the valuation of the same assets may raise concerns, particularly where valuations affect fee generation.

Clayton further stated that he has directed SDNY prosecutors to examine valuation discrepancies and outlier marks when assessing cases. This focus may represent a shift from the private-credit cases currently pursued by SDNY, which have largely centered on borrower-side fraud, and suggests increased attention on the conduct of lenders, asset managers, and investors.

Our blog post examines what Clayton’s comments may signal about future enforcement priorities, the types of valuation-related conduct likely to draw scrutiny, and practical steps firms can take to strengthen their valuation frameworks.