Key Takeaways
- • ASIC issued interim stop orders barring Angas Securities from offering interests in two managed investment schemes: the Angas Prime Income Fund (ARSN 091 887 400) and the Angas Direct Mortgage Fund (ARSN 151 979 645).
- • As of 30 June 2026, the two funds held approximately $114 million in investor funds, including $78.6 million in the Angas Direct Mortgage Fund and $35.1 million in the Angas Prime Income Fund.
- • ASIC cited PDS disclosure deficiencies over Angas Securities' financial position, including a net asset deficiency and breach of net tangible asset requirements.
- • The Angas Prime Income Fund faces a separate disclosure issue over its exposure to the Bathla Group, which collapsed in August with $3.4 billion in debt.
- • ASIC will publish results of its private credit surveillance on 10 November 2026 and will consider final stop orders after giving Angas Securities an opportunity to be heard.
Summary
The Australian Securities and Investments Commission (ASIC) has issued interim stop orders against two funds managed by Adelaide-based private credit firm Angas Securities, temporarily preventing it from offering interests in the Angas Prime Income Fund (ARSN 091 887 400) and the Angas Direct Mortgage Fund (ARSN 151 979 645). According to the regulator, the two funds held approximately $114 million in investor funds as of 30 June 2026, comprising $78.6 million in the Angas Direct Mortgage Fund and $35.1 million in the Angas Prime Income Fund.
ASIC's concerns center on the product disclosure statements (PDSs) for both funds. The regulator said the PDSs do not adequately disclose Angas Securities' financial position, including a net asset deficiency and a breach of net tangible asset requirements, and that investors were therefore not adequately informed about the risks arising from it.
The Angas Prime Income Fund faces an additional disclosure issue tied to its exposure to the Bathla Group, a major property developer that collapsed in August with $3.4 billion in debt. ASIC said the PDS omitted material information, including the fund's exposure to Bathla Group borrowers, defaults, liquidity, loan-to-value ratios and portfolio diversification, and that loan-to-valuation information was not presented in a clear, concise and effective manner.
ASIC commissioner Simone Constant said, "Our message to private credit fund managers is crystal clear. Investors need clear and timely information about the risks they are taking on, particularly when circumstances change and private credit loans run into difficulty." Constant added that a main concern is understanding the extent to which retail investors are affected, and said ASIC would "act swiftly" where investors are not given the full picture.
The action follows other recent interventions in the private credit sector. In September, ASIC issued interim stop orders against three private credit products run by MSC over target market determination deficiencies; those orders have since been lifted. In October, ASIC made an interim stop order preventing Fidante from issuing Class A units in a credit income fund run by Ares, also over target market determination concerns. ASIC will publish the results of its private credit surveillance on 10 November 2026.
ASIC will consider whether final stop orders should be made against Angas Securities, and will first give the firm an opportunity to be heard. Angas Securities has previously said it is undertaking a capital raising, which its directors expect to be resolved by 31 December 2026.
ASIC's concerns center on the product disclosure statements (PDSs) for both funds. The regulator said the PDSs do not adequately disclose Angas Securities' financial position, including a net asset deficiency and a breach of net tangible asset requirements, and that investors were therefore not adequately informed about the risks arising from it.
The Angas Prime Income Fund faces an additional disclosure issue tied to its exposure to the Bathla Group, a major property developer that collapsed in August with $3.4 billion in debt. ASIC said the PDS omitted material information, including the fund's exposure to Bathla Group borrowers, defaults, liquidity, loan-to-value ratios and portfolio diversification, and that loan-to-valuation information was not presented in a clear, concise and effective manner.
ASIC commissioner Simone Constant said, "Our message to private credit fund managers is crystal clear. Investors need clear and timely information about the risks they are taking on, particularly when circumstances change and private credit loans run into difficulty." Constant added that a main concern is understanding the extent to which retail investors are affected, and said ASIC would "act swiftly" where investors are not given the full picture.
The action follows other recent interventions in the private credit sector. In September, ASIC issued interim stop orders against three private credit products run by MSC over target market determination deficiencies; those orders have since been lifted. In October, ASIC made an interim stop order preventing Fidante from issuing Class A units in a credit income fund run by Ares, also over target market determination concerns. ASIC will publish the results of its private credit surveillance on 10 November 2026.
ASIC will consider whether final stop orders should be made against Angas Securities, and will first give the firm an opportunity to be heard. Angas Securities has previously said it is undertaking a capital raising, which its directors expect to be resolved by 31 December 2026.
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