Private credit under scrutiny as ASIC review targets fees and trustees
The private credit sector is awaiting ASIC’s review, with transparency around valuations, trustee independence and fee structures looming large.
A long-awaited review by ASIC into private markets is expected to extend well beyond private credit, with a significant focus on improving transparency, according to credit funds involved in the process.
“They were interested in data and how we do our analysis, in essence,” one fund manager told Capital Brief anonymously, given the sensitive nature of the review.
Patrick William, co-founder and managing director of Rixon Capital, a wholesale fund, said he had not been directly involved in ASIC’s consultations but believed three key areas of concern were emerging: fees, trustee independence, and transparency around credit quality and defaults.
Despite these issues, he noted the private credit market remains robust, with strong demand from both investors and borrowers.
