‘Normal business’: Merricks Capital shrugs off spike in bad debts, credit losses
The Regal-owned private credit fund manager’s credit losses increased while its performance and loan management fees have dropped.
Regal Partners’ private credit manager Merricks Capital has downplayed a rise in bad debts and credit losses on its books over the past 18 months as ‘normal’, amid lingering concerns over the resilience of the asset class as the economy sours.
In new filings with the Australian Securities and Investments Commission (ASIC), viewed by Capital Brief, Merricks’ bad debt expense grew from $5.1 million for the 12 months to June 2024 to $16.91 million between July 2024 to December 2025.
Sticky inflation and market volatility means investors expect a slight pick up in defaults. But news of rising bad debts will be under scrutiny amid intensifying surveillance from ASIC on the sector.
The financial report was filed for the last 18 months as a means to reconcile different reporting dates with parent Regal, which acquired Merricks in July 2024.
