Metrics Credit Partners—managing approximately A$40 billion ($28.09B)—suspended trading across 3 ASX-listed funds and issued sharp valuation markdowns following a dispute with auditor KPMG over valuation assumptions and probability weightings.
Key Fund Markdowns & Valuation Cuts:
- Metrics Real Estate Multi-Strategy Fund (MRE.AX): Net Tangible Asset (NTA) value slashed -12.16% (to A$2.22 per unit from A$2.53), driven by fair value reductions in unlisted commercial real estate equity investments.
- Metrics Income Opportunities Trust (MOT.AX): NTA value cut by -10.08%.
- Metrics Master Income Trust (MXT.AX): NTA value reduced by -1.99%.
Audit & Regulatory Backdrop:
- Downside Scenario Weighting: KPMG mandated higher provisions for potential loan losses due to macroeconomic headwinds, elevated interest rates, and heightened regulatory expectations.
- Industry Regulatory Crackdown: Comes as Australia’s ASIC warns of unrealistic valuations and poor governance in the private credit sector following the administration of property developer Bathla (owing A$3B across lenders; Metrics confirmed zero exposure).
A major regulatory wake-up call highlighting auditor scrutiny and valuation risks across Australia’s booming private credit market! 📊🇦🇺💼