Metrics Credit Partners, one of Australia’s largest non-bank lenders managing A$40 billion ($28 billion), has temporarily frozen investor redemptions across key unlisted funds and delayed audited financial reports—signaling mounting strain in the private credit market.
Key Financial Metrics & Market Developments:
Audit Standoff: Auditor KPMG refused to sign off on full-year accounts before the September 30 deadline due to disputes over fair-value calculations for unlisted commercial real estate assets.
Three ASX-Listed Funds Frozen: Trading remains suspended for Metrics Real Estate Multi-Strategy Fund (MRE), Metrics Income Opportunities Trust (MOT), and Metrics Master Income Trust (MXT) following asset valuation write-downs.
Dividend Reinvestment Halted: Trustee Perpetual suspended distribution reinvestment plans (DRP) for MOT and MXT to protect capital in unitholders’ best interests.
Credit Watch Ratings: S&P Global placed 4 wholesale Metrics-rated funds on “Credit Watch” following the market upheaval.
Broader Australian Market Context:
Sector Spillover: Follows the collapse of property developer Bathla Group (A$3 billion debt across ~40 lenders), triggering redemption freezes across several Australian non-bank lenders.
Regulator Crackdown: The Australian Securities and Investments Commission (ASIC) warned of unrealistic asset valuations and poor governance across private credit, threatening enforcement action.
A major valuation shock highlighting growing real estate default risks across non-bank lending markets!
