Regulatory ·
SEC's FY 2027 exam priorities name private credit and firms' use of "super intelligence" as focus areas
The SEC's Division of Examinations listed "private funds, private credit, and other complex investment strategies" and "emerging technologies, including super intelligence" among its FY 2027 focus areas across more than 34,000 registrants. For private fund advisers, the report says reviews will cover disclosures on use of debt and fund-level lines of credit, affiliated service providers, and the accuracy of fee and expense calculations at fund and investment level; it also flags valuation of illiquid holdings such as private credit at registered funds and broker-dealers. The report says registrants are using generative SI tools for research, drafting, advisory, portfolio management and compliance monitoring, and that examiners will check firms still meet existing, technology-neutral obligations.
Why it matters for deal teams: Private credit managers using AI in research, monitoring or reporting should expect examiners to ask how those tools are governed and how outputs are checked, alongside the usual sub-line, fee and valuation evidence.
Source: SEC press release and FY 2027 Examination Priorities report ↗ · more ↗