Australia’s securities regulator has imposed a temporary ban on Fidante Partners offering units in its Ares Global Credit Income Fund, as scrutiny of the private credit sector intensifies, according to a report by Bloomberg.
The Australian Securities and Investments Commission (ASIC) issued a 21-day interim stop order on Class A units of the fund, citing concerns over how its target investors were identified and whether the product was suitable for retail clients.
The regulator questioned the fund’s suitability for investors seeking capital preservation, as well as provisions allowing individuals to allocate up to 50% of their investable assets to the product.
The Ares Global Credit Income Fund had AUD799.9m in assets under management as of 30th June 2026, investing across global bonds, syndicated loans, asset-backed securities and collateralised loan obligations.
The intervention follows similar restrictions imposed last week on three mortgage investment funds managed by Australian Secure Capital Fund, which collectively oversee approximately AUD250m.
Those orders were issued over concerns about inadequate disclosures relating to underlying loan portfolios, diversification and the costs investors could face when exiting the funds.
ASIC said the latest action forms part of its broader surveillance of private credit, with particular attention on the distribution of investment products to retail investors.
The regulator is also examining fees, profit margins and potential conflicts of interest across the sector, amid growing concerns over transparency, liquidity and investor protection.
The increased scrutiny comes as Australia’s private credit market faces questions over asset valuations and liquidity management, following recent difficulties at major lenders including Metrics Credit Partners, which temporarily suspended withdrawals from some funds amid valuation concerns.
