The U.S. Securities and Exchange Commission has started an informal inquiry into private equity firms, asking for a broad range of documents on how the funds value assets and who invests in them.
Among issues regulators are examining is whether firms use inflated valuations to attract investors when marketing new funds, said a person familiar with the matter, who asked not to be identified because the inquiry isn't public.
The agency's Los Angeles office last year sent letters to several firms asking for details on fund investments and the valuation of assets, as well as communication with clients, according to the copy of a letter obtained by Bloomberg News. Firms were asked to produce the documents by the end of last year.
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