In a speech at SIFMA’s Private Markets Valuation Roundtable, U.S. Securities & Exchange Commission Commissioner Mark T. Uyeda, speaking in his individual capacity, argued that materially accurate valuations and disclosures in private markets remain a core investor protection issue under the federal securities laws’ antifraud provisions. He also said valuation will be central as regulators move to implement President Trump’s executive order encouraging work to expand 401(k) plan access to alternative investments. Uyeda pointed to the scale of private markets, citing USD 30.9 trillion managed by private funds as of the fourth quarter of 2024, and rejected the framing that private market growth comes at the expense of public markets. He highlighted the SEC Division of Examinations’ 2025 focus on the accuracy of private fund fee and expense calculations and allocations, including issues that can affect those calculations such as illiquid asset valuation and the adequacy of disclosures. For registered closed-end funds, he reiterated that regular net asset value determinations are required even for hard-to-value level 3 assets, with the valuation process governed by Section 2(a)(41) of the Investment Company Act of 1940 and Rule 2a-5, including board responsibility for fair value determinations, use of a valuation designee, and a risk-based approach with oversight, testing, and documentation. On retirement savings, he described the executive order as encouraging the SEC and the Department of Labor to revisit restrictions that limit 401(k) investment in alternatives such as venture capital, private credit, infrastructure, and digital assets. He indicated he expects further evaluation of market data and engagement with other regulators as proposals in this area are developed.
U.S. Securities & Exchange Commission 2025-09-04
U.S. Securities & Exchange Commission Commissioner Uyeda outlines private market valuation expectations and points to upcoming work on 401(k) access to alternative investments
SEC Commissioner Mark T. Uyeda stressed the importance of accurate valuations and disclosures in private markets under federal securities laws, focusing on private fund fee and expense accuracy. He noted the USD 30.9 trillion managed by private funds and discussed the executive order encouraging expanded 401(k) access to alternative investments. Uyeda also addressed the need for regular net asset value determinations for registered closed-end funds, governed by the Investment Company Act of 1940 and Rule 2a-5.