Valuation of thinly traded or illiquid assets can be a challenging exercise for private fund advisers. Inaccurate valuations can result in misstatements of net asset value (NAV) and associated errors in the calculation of advisory fees. The SEC’s enforcement proceeding against a private fund adviser is an important reminder of the need for robust valuation governance. The adviser's policies and procedures provided only “minimal guidance” on how to value certain illiquid assets in accordance with generally accepted accounting principles and the standards set by the Financial Accounting Standards Board, the SEC alleged. As a result of those shortcomings, the adviser had to restate the NAV of one fund and retroactively adjust the management fees it charged over several years. This article discusses the alleged deficiencies and the terms of the settlement. See “Emerging Trends and Themes in the SEC’s Oversight of Private Funds” (Jun. 8, 2023); and “Valuation and Sub‑Adviser Oversight Failures Result in Sanctions Against Adviser” (Sep. 22, 2022).