Australian regulator blocks two private credit funds over investor disclosure concerns
Australia's securities regulator has issued interim stop orders against two private credit investment funds managed by Angas Securities, citing concerns that investors may not have received adequate information about financial risks, according to a report by Bloomberg. The Australian Securities and Investments Commission (ASIC) has prevented the Adelaide-based firm from offering, issuing, selling…
The Australian Securities and Investments Commission (ASIC) has issued interim stop orders against two private credit investment funds managed by Angas Securities, citing concerns over investor disclosure. The Adelaide-based firm is prohibited from offering, issuing, selling, or transferring interests in the Angas Prime Income Fund and Angas Direct Mortgage Fund.
ASIC's primary concerns revolve around the disclosure of the firm's financial position and the Prime Income Fund's exposure to the insolvency of the Bathla Group, a property developer that entered bankruptcy in August with liabilities amounting to approximately AUD$3.4bn, a significant portion of which was owed to private credit funds.
Angas Securities held around AUD$114m in investor funds at the end of June, as per ASIC's records. This regulatory intervention follows a broader trend of increasing scrutiny on Australia's private credit market, particularly concerning asset valuations, liquidity, and disclosure standards. ASIC is anticipated to release an update on its private credit surveillance on November 10, as regulatory concerns intensify over the adequacy of investor information regarding deteriorating loan exposures.
Brief written by urgent.news from Private Equity Wire's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
