Audit forces Australian private-credit funds to halt after valuation cuts

Metrics Credit Partners suspended three listed funds after a delayed KPMG audit cut asset values.

Assembled by Claude from 8 sources at 7 outlets · Monday, September 28, 2026, Morning edition, 10:31 AM EDT · no human byline

What happened

Metrics Credit Partners halted three funds listed on the Australian Securities Exchange after a KPMG audit slashed asset valuations theaustralian.com.au. Bloomberg reported that the Australian private credit firm cut the value of three funds bloomberg.com. The West Australian said the suspensions followed a delayed KPMG audit that prompted the value cuts and exposed private credit risks thewest.com.au.

The Australian wrote that signs of a regulatory reckoning for the private credit industry are reaching the firm's Martin Place headquarters theaustralian.com.au. The suspensions came over the weekend thewest.com.au.

Why it matters to investors

Listed private credit funds are priced off marks rather than a continuously traded market, so an auditor's revision can force a trading halt rather than simply move a price theaustralian.com.authewest.com.au. That is the mechanism on display here, and it is the reason valuation practice in the asset class is drawing supervisory attention.

The US Securities and Exchange Commission published a statement on fair value measurement and disclosure considerations for private assets, saying the reminders in it are relevant to all registrants with exposure to private credit assets sec.gov. The statement is not itself a rule or regulation sec.gov. Private Debt Investor reported that the National Association of Insurance Commissioners has defended its regulatory model following probes privatedebtinvestor.com.

What to watch

Flows have been going the other way. Redemption pressure in major private credit funds aimed at retail investors eased in September as withdrawal requests declined and returns held up, according to AMWatch amwatch.com. The same publication reported that wealthy investors are turning to net asset value loans as private equity payouts slow, a route described as risk-efficient by one private banking executive amwatch.com. AMWatch reported that returns held up alongside the fall in withdrawal requests amwatch.com. Private Debt Investor separately noted that time spent on the road raising money has been increasing since 2021 privatedebtinvestor.com.

Two threads to follow. The first is whether other managers face similar audit-driven revisions once their own accounts are signed off bloomberg.comtheaustralian.com.au. The second is where the credit is being packaged: Bank of America has argued the next wave of AI-related debt could run through collateralised loan obligations, including private-credit CLOs and infrastructure, and that the edge will come from disciplined underwriting and knowing exactly where the collateral risk sits thedarksideoftheboom.substack.com. Whether the SEC's fair-value reminders change disclosure practice is the slower test sec.gov.

Sources

1. bloomberg.com: Australian Private Credit Firm Metrics Cuts Value of Three Funds - Bloomberg (2026-09-28)
2. theaustralian.com.au: Metrics Credit Partners halts three ASX funds after KPMG audit slashes asset valuations (2026-09-28)
3. thewest.com.au: Metrics funds suspended after delayed KPMG audit prompts value cuts and exposes private ... (2026-09-28)
4. amwatch.com: Redemption strain eases in big private credit funds - AMWatch (2026-09-28)
5. amwatch.com: Wealthy investors turn to net asset value loans as private equity payouts slow - AMWatch (2026-09-28)
6. sec.gov: Statement on Fair Value Measurement and Disclosure Considerations for Private Assets (2026-09-28)
7. privatedebtinvestor.com: Time on the road increasing since 2021 - Private Debt Investor (2026-09-28)
8. thedarksideoftheboom.substack.com: BofA: The Next AI Debt Wave Could Run Through CLOs (2026-09-28)