Metrics Credit Partners, one of Australia’s biggest private credit lenders, suspended trading in three ASX-listed funds before Monday’s market open and said their net tangible asset values would be reduced after KPMG disagreed with assumptions used in preliminary financial reports. The firm, which manages around A$40 billion ($28.09 billion), cut the values of the Metrics Real Estate Multi-Strategy Fund, Metrics Income Opportunities Trust and Metrics Master Income Trust by 12.16%, 10.08% and 1.99%, respectively. The largest reduction lowered the Real Estate Multi-Strategy Fund’s value to A$2.22 per unit from A$2.53, although the fund last traded at A$1.68. Metrics attributed most of that markdown to a lower fair value for unlisted commercial real estate equity investments. The audit also produced higher provisions for potential losses on loan exposures, reflecting interest-rate and macroeconomic conditions and heightened regulatory expectations applied to specific assets and the portfolio. The changes came as Australia’s private credit sector faces increased scrutiny following the collapse of property developer Bathla, which owed A$3 billion to about 40 lenders when it entered administration. Metrics said it had no exposure to Bathla. Australia’s corporate regulator warned the previous week about unrealistic valuations and weak governance in the sector, saying firms that failed to meet its standards should prepare for enforcement action.