Australia Probes Private Credit Lenders, Warns on Valuations (1)

Australia’s corporate watchdog is investigating a number of private credit funds and warning industry managers to make sure that asset valuations are “grounded in realistic assumptions” before an end-of-month reporting deadline.

“We’re absolutely 100% unequivocally ready, willing and able to use our full suite of regulatory enforcement tools,” said Simone Constant, Commissioner of the Australian Securities & Investments Commission in an interview. “It is such an important area because private credit is growing in importance in so many investors’ investment portfolios.”

The industry faces its “first test” as liquidity tightens, and borrower stress puts a spotlight on valuations ...