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4 clusters · 11 sources · 6 days · First seen · Last updated

Metrics Credit Partners fund trading and redemption freeze

Overview

Pinnacle Investment Management announced a temporary trading pause for three funds managed by its affiliate, Metrics Credit Partners Pty Limited: the Metrics Master Income Trust, Metrics Income Opportunities Trust, and Metrics Real Estate Multi-Strategy Fund.

Subsequent reports clarified that the suspension followed an audit by KPMG. Auditors disagreed with the assumptions and probability weightings used in the firm’s preliminary financial reports, leading to significant markdowns in the funds' net tangible asset values. Specifically, 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 were attributed to a reassessment of unlisted commercial real estate equity investments and increased provisions for potential loan losses driven by interest-rate and macroeconomic conditions. The development occurred amid broader regulatory scrutiny of valuations and governance within the Australian private credit sector.

As of early October, the situation has escalated. KPMG refused to sign off on full-year accounts by the September 30 deadline due to ongoing valuation disagreements. Consequently, Metrics has implemented a 90-day freeze on redemptions for its unlisted wholesale funds, including the A$6 billion Metrics Wholesale Investment Trust and the A$5.4 billion MCP Real Estate Debt Fund.

In response to the instability, S&P Global placed four rated wholesale Metrics funds on credit watch, and Perpetual suspended distribution reinvestment plans for certain trusts. The Australian Securities and Investments Commission is currently monitoring the sector to ensure redemption decisions serve investor interests.

Entities

Metrics Credit Partners · KPMG · Bathla Group · Metrics Credit Partners Pty Limited · Australian Securities Exchange

Timeline

  1. [BUSINESS] 2 sources
    Metrics Credit Partners suspends fund redemptions amid audit disputes

    Metrics Credit Partners has suspended redemptions for several wholesale funds after auditor KPMG withheld sign-off on accounts due to valuation disputes regarding commercial real estate investments.

  2. [BUSINESS] 3 sources
    Metrics Credit Partners freezes fund redemptions after asset write-downs

    Australian firm Metrics Credit Partners has frozen fund redemptions and delayed financial reports following asset write-downs and auditor disagreements over real estate valuations.

  3. [BUSINESS] 4 sources
    Metrics Credit Partners suspends three ASX funds after audit

    Metrics Credit Partners suspended three ASX-listed funds after a KPMG audit led to significant asset value markdowns and higher loss provisions.

  4. [BUSINESS] 3 sources
    Pinnacle Investment Management announces trading pause for three Metrics funds

    Pinnacle Investment Management has announced a temporary trading pause for three Metrics-managed funds (MXT, MOT, and MRE) pending further announcements.

Sources

alternativecreditinvestor.com · devdiscourse.com · finnewsnetwork.com.au · fool.com.au · hedgeco.net · it-boltwise.de · mingtiandi.com · moneymanagement.com.au · sharecafe.com.au · srnnews.com · thenightly.com.au

This summary has been updated 2 times: see revision history