Australian alternatives manager Metrics Credit Partners has suspended trading in three of its ASX-listed funds as the country’s private credit market continues to battle headwinds.

The private debt manager put two of its private credit funds, Metrics Master Income Trust and Metrics Income Opportunities Trust, into a trading halt on Monday (28 September), alongside its real estate debt and equity fund, Metrics Real Estate Multi-Strategy Fund, according to ASX filings. It then requested a voluntary suspension of all three funds.

Metrics, which manages around A$40bn (£21.2bn), moved after its auditor, KPMG, made “different decisions” in relation to inputs and probability weightings from those used in preliminary financial reports, separate filings with the ASX revealed.

Following KPMG’s audit findings, Metrics has marked down all three funds. Net tangible asset values have been cut by 12.16 per cent at Metrics Real Estate Multi-Strategy Fund, 10.08 per cent at Metrics Income Opportunities Trust and 1.99 per cent at Metrics Master Income Trust.

It comes after the collapse of Sydney-based housing developer Bathla Group in late August raised concerns over Australia’s A$200bn private credit market, with around 40 lenders exposed to the company.

Following Bathla’s collapse, Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), warned that private credit firms failing to meet its standards “should prepare for enforcement action” as it stepped up work to address risks in the sector.

Last week, ASIC temporarily banned three private credit products offered by Melbourne Securities Corporation after finding “deficiencies” in their target market determinations, legal documents setting out who a financial product is intended for and how it should be distributed.

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