FindLaw reported:
Prosecutors in Manhattan and the SEC are now investigating Delaware Life, Clear Spring, and Guggenheim’s asset‑management arm, including how private‑credit investments tied to Walter’s broader business empire were disclosed and how Guggenheim represented its revenue.
Guggenheim Partners' website states "it conducts its operations with the highest legal and ethica standards."
The issue is a common one for private equity underwriters (PEU), related party transactions which are supposed to be arm's length and disclosure can be required. Some deals are more of a bear hug (not arm's length) and disclosures inaccurate (from lying).
In response to subpoenas sent to Delaware Life and Clear Spring in February, the insurers say they reviewed their books and found reporting errors in how billions in private‑credit investments backing other parts of Walter’s business empire had been classified. Delaware Life had previously told regulators that about 3 percent of its portfolio was invested in Walter‑linked companies; after re‑checking, it disclosed that related‑party investments were actually at least $17 billion (around 39 percent of its total invested assets), meaning a much larger portion of its book was tied to affiliated entities than regulators had been told.That's a 1.200% miss for Delaware Life.
Walter’s holding company, TWG Global, links his sports teams with his insurance and asset‑management businesses. It has acknowledged the investigation and says it is cooperating, while the parent of Delaware Life and Clear Spring maintains that its capital and liquidity remain strong.PEUReport wrote about TWG's purchase of the Lakers in June 2025. Private equity targeted sports in a big way in the last two years and I speculated about UVA basketball coach Tony Bennett's possible involvements after he stepped down from that job.
PEUs are all about incentives, do this to get that, money, power, political influence. I can't think of a worse next job for Tony Bennett than employment with the greed and leverage boys. However, that is the tidal wave getting ready to engulf college athletics. They need someone like Tony. The question is does Tony need them?
The Lakers hired Bennett in February. It's clear Mark Walter needs to raise the ethical bar.
The likely banquet of non-consequences will be served up to Walter by U.S. political leaders as politicians Red & Blue love PEU and their new TechGod brethren and increasingly, more are one.
Note: TWG Global did a deal with xAI and Palantir so it even has a bit of a TechGod flair. Add a sovereign wealth fund cap to TWG with its investment arrangement with Mubadala Capital. That's a lot of get out of jail free cards.
