The U.S. Securities and Exchange Commission regulates the private credit department, which is expected to lose 24% of its staff by 2025.

LootboxPhobia · 2026-03-27T21:54:57+00:00

According to the U.S. Government Accountability Office report, the Securities and Exchange Commission's Division of Investment Management lost 24% of its staff in fiscal year 2025, with an overall turnover rate of approximately 18%. Departing employees took their expertise with them, resulting in institutional knowledge loss. At this time, private credit funds are under review, and the organization has paused its leadership development program.

LootboxPhobia

2026-03-27 21:54:57

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Investing.com - According to a report released by the U.S. Government Accountability Office on Friday, the investment management division of the U.S. Securities and Exchange Commission lost 24% of its employees in fiscal year 2025. This division is responsible for regulating hedge funds, private credit companies, mutual funds, and investment products.

The Government Accountability Office’s report states that as of the end of the fiscal year on September 30, 2025, the SEC overall lost about 18% of its employees. Most of the departing employees accepted voluntary separation incentives, and the SEC did not conduct any involuntary layoffs related to executive orders in 2025.

According to the Government Accountability Office’s report, the investment management division found a “loss of expertise in rulemaking” after employee departures. Interviews conducted in May and June 2025 with 61 SEC employees found that 33 of them indicated that departing employees possessed unique knowledge or specific area expertise, leading to a loss of institutional knowledge.

Employee departures come at a time when private credit funds are under scrutiny and investors are concerned. Apollo Global Management (NYSE: APO) and Ares Management (NYSE: ARES) recently prevented investors from withdrawing some funds from their funds.

The SEC implemented personnel changes based on executive orders and government directives. Due to uncertainty regarding the availability and timing of future promotion opportunities, the agency suspended its leadership development program in 2025. In December 2025, the SEC submitted a staffing plan identifying positions that various divisions and offices may seek to fill.

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