Metrics Credit Partners freezes fund redemptions after asset write-downs

Metrics Credit Partners, a major Australian private credit manager overseeing approximately A$40 billion, has frozen investor redemptions for several funds and delayed the release of audited financial reports.

The suspension affects the Metrics Real Estate Multi-Strategy Fund, Metrics Income Opportunities Trust, and Metrics Master Income Trust. These funds have been suspended from stock exchange trading following asset write-downs. Metrics stated that its auditor, KPMG, disagreed with assumptions used in preliminary financial reports, specifically regarding fair value calculations for unlisted commercial real estate equity investments.

This development follows warnings from Australian regulators regarding unrealistic valuations and governance issues within the private credit sector. The industry faces pressure due to its heavy exposure to a property market currently impacted by interest rate hikes and tax changes. The situation follows the recent administration of property developer Bathla Group, which owed A$3 billion to various lenders.