On February 25, 2026, the U.S. Securities and Exchange Commission (SEC) charged a credit fund adviser with negligence-based anti-fraud violations and breaches of fiduciary duty in connection with the sale of originated loans to affiliated private funds. This enforcement action underscores the SEC’s continued focus on principal transactions and highlights the importance of robust valuation practices when advisers sell assets from their own accounts to affiliated funds. The case is particularly relevant for managers with “season and sell” loan strategies.