As private credit continues to grow, investors, auditors and regulators are placing greater scrutiny on how valuations are determined, governed, and documented. In this environment, valuation conclusions alone are no longer enough; managers must be prepared to demonstrate the processes, controls and oversight that support them.

VRC’s Adrian Lowery partners with PKF O’Connor Davies to examine the evolving expectations surrounding valuation governance in private credit. They discuss how trends such as retailization, increased secondary market activity, and heightened regulatory focus are reshaping valuation practices and driving demand for more robust frameworks.

The article outlines five essential components of a defensible valuation framework, including comprehensive policies, independent oversight, market-based support, thorough documentation, and multidisciplinary expertise. Together, these elements can help private credit managers strengthen transparency, support audit and regulatory readiness, and build confidence among key stakeholders.