How Metrics' Rockpool rescue highlights private credit's disclosure paradox
Woodbridge co-founder Andrew Torrington says Metrics was "smashed" over Rockpool, despite providing the kind of transparency regulators want from private credit funds.
Regulators and some investment houses have been pushing for more transparency from private credit funds. But when one of the biggest operators in the booming market, Metrics Credit Partners, did exactly that it was punished.
That's the view of Woodbridge Capital co-founder and chief investment officer Andrew Torrington who uses the example of Metrics' move to take control of the owner of iconic Sydney restaurant Rockpool last year to highlight the paradox he says exists in one of the fastest growing corners of finance. Market participants want more transparency, but when they get it, they don't know what to do with it.
“I think that’s what happened with Metrics, it gave the market transparency and then the market couldn't cope with it. It’s an interesting phenomenon,” Torrington told Capital Brief.
Metrics was hit with a barrage of negative headlines when it moved to take control of Pacific Hunter Hospitality last year, even though it was private equity owner Quadrant that walked away from the business.
