Metrics Credit Partners suspends fund redemptions amid audit disputes

Metrics Credit Partners, a major Australian private credit manager with approximately A$40 billion under management, has temporarily suspended redemptions from its unlisted wholesale funds. The 90-day freeze affects the A$6 billion Metrics Wholesale Investment Trust and the A$5.4 billion MCP Real Estate Debt Fund. This decision follows a refusal by auditor KPMG to sign off on the full-year accounts by the September 30 deadline due to disagreements regarding valuation assumptions, specifically concerning fair value for unlisted commercial real estate equity investments.

The suspension coincides with trading halts for several listed vehicles, including the Metrics Master Income Trust, Metrics Income Opportunities Trust, and Metrics Real Estate Multi-Strategy Fund, following reported write-downs. S&P Global has placed four rated wholesale Metrics funds on credit watch, and Perpetual has suspended distribution reinvestment plans for certain trusts.

The situation highlights broader risks within Australia’s rapidly expanding private credit sector, which saw net inflows exceeding $5 billion last financial year. Industry analysts note that the sector faces scrutiny over liquidity mismatches, particularly as the collapse of property developer Bathla Group underscores the risks of heavy real estate exposure. The Australian Securities and Investments Commission is currently monitoring the sector to ensure redemption decisions serve investor interests.