Three ASX-listed private credit funds operated by Metrics Credit Partners have resumed trading after being suspended following discrepancies between preliminary financial results and audited accounts.
The suspension placed renewed attention on Australia’s rapidly expanding private credit sector, which has attracted billions of dollars from retail investors, superannuation funds and institutions seeking higher income returns.
Metrics subsequently reduced the net tangible asset backing of the three listed vehicles by a combined around A$170 million.
The Metrics Master Income Trust’s NTA was reduced to A$1.96 from A$2.00 per unit, while the Metrics Income Opportunities Trust was cut to A$1.93 from A$2.15.
The Metrics Real Estate Multi-Strategy Fund was reduced more sharply to A$2.22 from A$2.53.
Investors reassess private credit risk
The Income Opportunities Trust fell about 5% after trading resumed, indicating investors were demanding a larger discount following the valuation changes.
The episode comes as private credit faces its first significant stress test in Australia following years of rapid expansion.
Higher interest rates and falling property values have placed pressure on some borrowers, particularly within commercial property and development.
Metrics manages tens of billions of dollars across private debt strategies, making the valuation dispute important well beyond the three listed vehicles.
The episode also highlights one of the key differences between private and public markets: loans and other unlisted assets are not continuously priced on an exchange.
As Australian investors increase their exposure to private credit, the Metrics situation is likely to intensify debate around valuation transparency, liquidity and the risks hidden inside supposedly defensive income investments.
