A new report from the Investment Company Institute (ICI) outlines how regulated funds approach private credit valuation and the governance frameworks that support it.
The paper comes as questions arise about how investments in private credit, that attract more public attention, are valued. The paper, Valuation Governance Considerations for Private Credit Assets in Regulated Funds, looks at current industry practices and highlights how firms are approaching valuation as the market evolves. The paper serves as a resource for ICI members, officials said, as well as regulators and policy makers.
“Strong valuation practices and governance are critical to supporting fair and consistent treatment of investors,” ICI President and CEO Eric Pan said. “The paper’s comprehensive analysis of valuation practices reflects ICI’s unique ability to convene experts across the industry and translate that expertise into practical guidance.”
Developed through ICI’s Security Valuation Operations Committee Private Credit Working Group, the paper reflects feedback and experience from their own valuation programs. Other experts, including valuation specialists, accounting firms, and attorneys, provided technical and legal review. Combined, the report gives a cross-section of industry perspectives and offers insight into the issue.
Private credit has evolved into a significant part of global lending, with assets under management increasing from $357 billion in 2010 to more than $1.7 trillion as of June 2025. While business development companies have invested in private credit for decades, the organization said, other regulated fund structures have more recently expanded into the space.
Valuation approaches can vary across fund structures, ICI said, but the framework for valuation is the same. What differs is how funds apply it. As private credit markets continue to grow, maintaining well-governed valuation practices will remain essential, the organization said.