Private Credit Funds - Under ASIC’s Microscope

As Australia’s private credit sector continues its rapid expansion, ASIC has commissioned a comprehensive review to better understand its size, structure, and practices. The resulting report highlights both strong and concerning industry behaviours, with particular attention to valuations, liquidity management, and transparency.

ASIC’s surveillance of private credit funds has confirmed these mixed practices. Some conduct may fall short of obligations under financial services law — including the requirement to act efficiently, honestly and fairly, and to avoid misleading or deceptive conduct.

In November, ASIC will publish its private credit surveillance findings, setting out guiding principles for compliant practices, examples of better and poorer conduct, and a forward-looking regulatory roadmap covering future standards and surveillance priorities.