Metrics Credit Partners Suspends Three Funds After KPMG Audit

Metrics Credit Partners, one of Australia's largest private credit lenders, suspended trading of three ASX-listed funds on September 28. The decision followed an audit by KPMG, which disagreed with the assumptions and probability weightings used in the lender's preliminary financial reports.

The lender announced markdowns to net tangible asset values across three vehicles: the Metrics Real Estate Multi-Strategy Fund fell by 12.16%, the Metrics Income Opportunities Trust decreased by 10.08%, and the Metrics Master Income Trust dropped by 1.99%. Metrics attributed these cuts to higher provisions for potential losses and a reduction in the fair value of unlisted commercial real estate equity investments.

In explaining the adjustments, the firm stated that "in finalising the audited results, greater weight was given to downside scenarios and less favourable potential outcomes". This suspension occurs amid broader regulatory pressure, as the Australian Securities and Investments Commission has warned the private credit sector regarding poor governance and unrealistic valuations, specifically citing the collapse of property developer Bathla.