ASIC warns of 'first significant cracks' in Australian private credit

Australia’s private credit sector is facing fresh scrutiny after the collapses of property developer Bathla Group and Jon Adgemis’ hospitality empire, which carried $3.2 billion and $1.8 billion of liabilities respectively with substantial exposure to private lenders, while several non-bank funds including Merricks, Longreach Credit, Centuria Bass and MA Financial have restricted investor redemptions, and the Financial Services Council has introduced new mandatory standards in response to concerns raised by ASIC and the RBA.

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