2.22.2012 The SEC has been sending a sweep letter to private equity fund advisers focusing on valuation issues, including how assets of the private fund are valued. It has been speculated that the primary purpose of the sweep letter is to increase the SEC’s knowledge about private equity funds. Among other documents, the letter requests formation and offering documents and written communications with investors. Recently, several newspapers reported the SEC’s inquiry at one firm regarding whether it correctly valued the portfolio security of one of the private equity funds that it manages.
