Metrics Credit Partners suspends three ASX funds after audit

Metrics Credit Partners, a major Australian private credit lender, has suspended trading of three ASX-listed funds following an audit by KPMG. The suspension occurred after auditors disagreed with the assumptions and probability weightings used in the firm’s preliminary financial reports.

The audit resulted in significant markdowns to the net tangible asset values of the funds. The Metrics Real Estate Multi-Strategy Fund saw a 12.16% reduction, the Metrics Income Opportunities Trust fell by 10.08%, and the Metrics Master Income Trust was cut by 1.99%. These adjustments reflect a reassessment of unlisted commercial real estate equity investments and higher provisions for potential loan losses due to macroeconomic and interest-rate conditions.

The move follows warnings from Australian regulators regarding unrealistic valuations and governance within the private credit sector. While Metrics stated it has no exposure to the collapsed property developer Bathla, the industry remains under scrutiny. Shares in Pinnacle Investment Management, which holds a 35% stake in Metrics’ holding company, experienced volatility following the announcement.