Metrics Credit Partners cuts fund valuations by $168M

• Metrics Credit Partners suspended redemptions from private credit funds holding over $9 billion in assets.
• Trading in the company's main listed trust was suspended following material differences in audited accounts.
• The manager cited valuation complexities and a desire to ensure orderly investor liquidity for the decision.

Metrics Credit Partners suspended investor redemptions across wholesale funds managing over $9 billion after slashing $168 million from the valuation of three listed vehicles.

The withdrawal freezes followed an accounting dispute with auditor KPMG that forced the company to delay its financial statements and reduce net asset values across affected funds.

The company stated that the valuation adjustments did not represent realised losses or a conclusion that its strategies or forecast cash flows would not be achieved.

Under the restrictions, the manager halted redemptions on its $6 billion wholesale investment trust and its $3.3 billion wholesale real estate debt fund.

The valuation write-downs occur as Australian private credit managers navigate elevated interest rates and property market headwinds across an industry managing over $200 billion.

Regulators have expanded surveillance of asset values across private credit lenders as falling real estate prices increase defaulted property loans.