Metrics freezes redemptions as Australian private credit pressures mount
Australian private credit manager Metrics Credit Partners has temporarily suspended redemptions from a number of underlying unlisted funds, according to a report by Reuters, adding to signs of strain across the country’s fast-growing non-bank lending market. The move comes after auditor KPMG declined to sign off on the full-year accounts of three listed Metrics vehicles.
Metrics Credit Partners has briefly halted redemptions from several of its Australian private credit vehicles, according to a Reuters report. The suspension follows auditor KPMG's refusal to certify the full-year accounts of three of Metrics' listed funds. The impacted listed funds are Metrics Real Estate Multi-Strategy Fund, Metrics Income Opportunities Trust, and Metrics Master Income Trust.
These funds have been off-limits for trading since Monday after Metrics reported asset write-downs. In a broader context, Australia's private credit sector is under increased scrutiny following the August collapse of property developer Bathla Group, which left around AUD3 billion in debt to numerous lenders, many private credit firms.
Metrics maintains it has no connection to Bathla. The sector's growth, fueled by significant lending to real estate, has left it vulnerable to higher interest rates, declining property conditions, and mounting investor worries over asset valuations and liquidity. Australia's regulatory body, the Australian Securities and Investments Commission, is monitoring the situation closely, warning that managers limiting or delaying redemptions must ensure fair treatment of investors.
The regulator also expressed concerns about valuation practices and governance standards in private credit, threatening enforcement if firms do not meet its standards. Perpetual, the entity overseeing Metrics Master Income Trust and Metrics Income Opportunities Trust, has also suspended distribution reinvestment plans for these funds, preventing investors from using distributions to buy more units.
S&P Global has flagged four of Metrics' wholesale funds as being under credit watch, as the firm assesses the impact of these events on the manager's portfolio.
Written by urgent.news from Private Equity Wire's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
