The U.S. Securities and Exchange Commission's enforcement division is investigating continuation vehicles, a type of fund used by private equity firms to hold assets they cannot or do not wish to sell, according to three people familiar with the matter. The probe is examining potential conflicts of interest, asset valuation practices, and the sufficiency and consistency of investor disclosures. Continuation vehicles have surged in popularity, with fund manager-led secondary transactions reaching $106 billion last year, up from $70 billion in 2024, according to Evercore. The SEC has also formed an informal working group across its enforcement, examinations, and investment management divisions to improve coordination on private credit market oversight. The scrutiny comes as private equity firms sit on a backlog of more than 30,000 unsold portfolio companies, according to Bain & Co., and as watchdogs intensify oversight of the $1.8 trillion global private credit market.