TLDR
Metrics Credit Partners has suspended redemptions on two wholesale funds holding more than A$9 billion after auditor KPMG refused to sign off FY26 accounts over a valuation dispute on unlisted commercial real estate equity. Three ASX-listed Metrics trusts took combined write-downs of roughly A$168 million.
The freeze and its scale
Metrics Credit Partners suspended applications and redemptions across two wholesale funds on 30 September 2026. The MCP Wholesale Investments Trust carries A$6 billion of assets and the MCP Real Estate Debt Fund A$3.3 billion. [1] Together, more than A$9 billion in investor capital sits locked until Metrics and KPMG resolve the disagreement that caused the accounts to miss their lodgement deadline.
The responsible entity, The Trust Company (RE Services), said the suspension followed disclosures made earlier in the week. [6] "The suspension of applications and redemptions is due to the matters disclosed earlier this week, when we flagged that audited accounts would differ from preliminary figures released in August," Metrics Credit Partners said.
What KPMG objected to
KPMG Australia said it could not reach agreement with Metrics on valuation inputs and probability weightings for certain unlisted commercial real estate equity. It declined to sign the FY26 financial reports by the 30 September lodgement deadline. [2] The dispute is specific. It concerns how the manager weighted scenarios in modelling the value of illiquid property equity holdings. That kind of assumption is hard to arbitrate quickly when two parties hold different views on where commercial property is heading.
"We have been unable to reach agreement with the manager on valuation inputs and probability weightings for certain unlisted commercial real estate equity, and accordingly will not sign off the FY 26 financial reports by the lodgement deadline," KPMG Australia said. [2] Worth noting is the auditor's precision: the disagreement is about inputs and weightings, not about whether transactions occurred or whether assets exist.
Impact on ASX-listed trusts
Metrics' three ASX-listed trusts were placed in a trading halt on 28 September 2026 pending the release of audited financial reports. They are the Metrics Real Estate Multi-Strategy Fund (ASX: MRE), the Metrics Income Opportunities Trust (ASX: MOT) and the Metrics Master Income Trust (ASX: MXT). [3] When those reports landed, the numbers were considerably worse than the preliminary August figures had suggested.
Net tangible asset values were cut across all three listed trusts. MRE fell 12.16 per cent, MOT 10.08 per cent and MXT 1.99 per cent, reducing combined values by about A$168 million. [2] The gap between MRE's 12 per cent haircut and MXT's sub-2 per cent movement points to where the concentration of disputed real estate equity sits inside the Metrics structure.
Broader context: RBA, ASIC and a A$200 billion market
The freeze landed on the same day the Reserve Bank of Australia published its October 2026 Financial Stability Review. The review flagged non-bank credit providers as a potential vulnerability, citing elevated commercial real estate valuations and the risk of forced asset sales in a downturn. [5] The timing is coincidental, but the alignment sits uncomfortably for a sector that has spent years arguing its valuation practices are sound.
Australia's private credit market now sits at roughly A$200 billion, and ASIC has been sharpening its oversight posture for months. [4] ASIC's September 2026 review warned that participants must strengthen valuation governance and liquidity risk frameworks or face enforcement. Its 10 Best Practice Principles for private credit managers take effect from 1 July 2027. [4]
Metrics manages approximately A$40 billion in assets under management across its credit and real estate strategies, meaning the gated funds represent roughly a quarter of that total. [7] How quickly redemptions reopen depends on whether Metrics and KPMG can agree on a valuation methodology. That negotiation has no fixed timeline and no regulatory deadline beyond what ASX listing rules impose on the listed vehicles.
KEY TAKEAWAYS
SOURCES & CITATIONS
- Private credit woes deepen as A$9bn funds frozen
- Australian private credit manager Metrics gates funds
- Australian lender Metrics suspends three funds
- ASIC private credit review
- RBA Financial Stability Review 2026
- Metrics freezes redemptions behind listed funds as audit stalls
- Metrics Credit Partners: About Us
FREQUENTLY ASKED QUESTIONS
Why did KPMG refuse to sign the Metrics accounts?
Which funds are affected and how much money is frozen?
How much have investors in the listed trusts lost in NTA terms?
What is ASIC doing about private credit valuation practices?
Vikram Singh writes about banking. He follows where money actually moves, from the strategy set in head office to what changes on a customer's phone.
