The rapid expansion of private-market investing is forcing fund groups to overhaul how they value assets, and a new survey from Deloitte shows that artificial intelligence is becoming a central part of that transformation—even as oversight mechanisms lag behind.
Released on October 8, 2026, the 24th edition of Deloitte's Fair Valuation Pricing Survey polled 95 registered investment company fund groups during the summer of 2026. The findings paint a picture of an industry grappling with surging private equity and credit allocations, daily pricing demands, and heightened regulatory scrutiny from the Securities and Exchange Commission.
Private equity exposure now reaches 51% of participating fund groups, while private credit holdings stand at 33%—a figure that remains well above the 21% recorded in 2023. Nearly half of the groups (46%) reported growth in private equity positions over the past year, up from 26% in 2025, and 59% are actively purchasing private equity investments, compared with 50% a year earlier.
This acceleration is driving demand for more frequent and rigorous valuations. Financial advisors are increasingly allocating client assets to alternative vehicles such as interval funds, business development companies, and tender-offer funds, and they need confidence that the marks on those positions are defensible. Nearly 60% of survey participants have recently launched an alternative fund product, with 55% of that group citing projected growth and marketing advantage as the primary motivation.
Daily pricing vs. full valuation updates
One of the most striking findings is the disconnect between how often private credit is priced and how often those prices reflect a genuine reassessment of underlying assumptions. While 48% of fund groups refresh fair valuations daily based on observable market inputs, only 4% perform a full valuation update daily that revisits unobservable inputs, cash flow assumptions, and methodology. The largest share—39%—conduct that full-judgment update only quarterly.
Daily pricing that tracks interest rate benchmarks or credit spread movements is mechanically straightforward, but a true fair value determination for a private credit position requires reworking assumptions about borrower health, collateral quality, and cash flow trajectory. Most fund groups are still doing that work quarterly, even as investors and regulators expect more timely marks.
Outsourcing price discovery to third-party providers is becoming more common: 69% of fund groups now receive a spot price or range of prices for private credit from an external provider, up from 66% in 2025. Reliance on internal models remains steady at 17%. However, outsourcing transfers execution, not responsibility—boards remain accountable under SEC Rule 2a-5, the fair value governance framework that has been in effect since 2022.
AI adoption surges, governance lags
Artificial intelligence is moving from conversation to practice, but the governance frameworks needed to manage it responsibly are not keeping pace. Seventy-seven percent of survey participants reported beginning to use or increasing their use of AI in the past year, a sharp jump from 35% in 2025. Among AI users, the most frequently cited tools are Microsoft Copilot (73%), ChatGPT (40%), and Claude (29%).
The applications are primarily efficiency-focused: 58% of AI users employ the tools to draft valuation memos and materials, 40% use them for quality review, and 40% for document intake and data extraction. Replacing professional judgment is not yet on the table—the survey describes the prevailing posture as “digital-driven and human-led.”
Yet the governance gap is significant. While 42% of fund groups have a formal policy for acceptable AI use, 39% report having no formal AI governance or specific control practices in place. Among those using AI in valuation, only 10% have established vendor due diligence processes for the tools they deploy, and just 7% have implemented output logging or audit trails.
That imbalance is drawing regulatory attention. The SEC's Division of Examinations listed AI training and security controls among its fiscal year 2026 examination priorities, according to the agency's published priorities cited in the Deloitte report.
SEC scrutiny remains elevated
Valuation continues to be a top focus for SEC exams. Among the 19% of survey participants that reported an SEC examination in the past year, 53% said valuation policies and procedures were an area of focus—down from 58% in 2025 but still above the 39% and 40% reported in 2024 and 2023, respectively. Nearly one-third also reported significant inquiries into internal valuation methodologies and the frequency of valuations for private equity, private credit, and restructured equities.
The regulatory pressure is unlikely to ease. In a July 2026 statement on the regulatory agenda, SEC Chairman Paul Atkins noted the commission's interest in better facilitating retail investor participation in private markets while preserving appropriate safeguards, according to the Deloitte survey. The Department of Labor added to that dynamic with a March 2026 proposed rule that could affect how retirement plans value private assets.
For financial advisors, the survey underscores the importance of understanding how fund groups are managing valuation processes. As the SEC's push to expand private market access continues, advisors should be aware of the governance gaps that may exist at the funds they recommend. The findings also echo broader trends in the wealth management industry, where wealthy investors remain committed to alternatives despite concerns about private credit.
Deloitte's Paul Kraft, Investment Management Marketplace Excellence Leader and Lead Partner at Deloitte & Touche LLP, emphasized the need for balance: “Private-market investing is entering a more complex phase as fund groups respond to investor demand, evolving products, and increasing regulatory attention. The survey highlights the importance of pairing innovation—including daily pricing and artificial intelligence—with disciplined governance, independent challenge, and human-led oversight.”
