Flawed valuations in private credit boom

Taking action: Kelleher in an interview at Bloomberg House in Switzerland. The UBS chairman’s warning has led to the SEC rushing in rules to force private fund advisers to allow external audits as an ‘important check’ on asset values. — Bloomberg

NEW YORK: Colm Kelleher whipped up a storm at the end of last year when the UBS Group AG chairman warned of a dangerous bubble in private credit.

As investors dive headfirst into this booming asset class, the more urgent question for regulators is how anybody could even know for sure what it’s really worth.