Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTBy Chris Prentice, Dawn Kopecki and Isla BinnieWed, June 24, 2026 at 12:13 PM GMT+2 4 min readBy Chris Prentice, Dawn Kopecki and Isla BinnieWASHINGTON, June 24 (Reuters) - The U.S. Securities and Exchange Commission's enforcement division is probing funds typically used by private equity firms and other money managers to hold on to assets they either cannot or do not wish to sell, as the agency explores potential issues in private markets, said three people familiar with the matter.In recent months, SEC enforcement staff have homed in on a number of "continuation vehicles," or CVs, said the people, who spoke on condition of anonymity.They are investigating potential conflicts of interest around the CVs, how managers are valuing the assets, and whether investor disclosures are sufficient and consistent, the three people said. Reuters could not ascertain which specific funds are being investigated or what type of assets they hold.The enforcement scrutiny into CVs has not previously been reported.Continuation vehicles have surged in popularity, with fund manager-led secondary transactions worth $106 billion last year, according to Evercore.Rising interest rates have made it harder for PE firms to find buyers willing to match the lofty multiples paid for some companies, especially during the pandemic when rates were low and money was cheap.Geopolitical turmoil, policy uncertainty and disruption driven by artificial intelligence have strained sales from private equity portfolios even further.Traditional private equity funds have a finite life cycle, usually about a decade. CVs allow managers to find new investors and transfer assets from older funds into a new vehicle, extending the holding period while giving existing investors the option to cash out.As a result, the vehicles give managers a way to return cash to investors without being forced to sell assets at a deep discount in weak markets or to a competitor — or realize potential losses. CVs predominantly deal in equity assets, although the share of credit assets is growing.CLOSE COORDINATION AT THE SECSince late last year, staff in the enforcement division have also sought to build what the sources described as an informal "working group" with the examinations, investment management and other divisions, to ensure closer coordination and information-sharing on the opaque private credit market, the people said.While SEC examiners have been scrutinizing private fund issues, including continuation vehicles, for some time, the escalation to the enforcement division and the cross-division collaboration underscore growing concerns among watchdogs over potential problems in private markets.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info