On 5 November 2025, the Australian Securities and Investments Commission (ASIC) published Report 820 that summarises its observations from a review of private credit funds offered to retail and wholesale investors.
The report will interest responsible entities and trustees of managed funds, investment management firms, portfolio managers, investment advisers and consultants, financial advisers, industry bodies, service providers and other regulators. It will also interest those considering investing in private credit markets, including retail, wholesale and institutional investors.
Report 820 is based on ASIC’s thematic surveillance of 28 private credit funds (20 retail funds and 8 wholesale funds) which found inconsistent practices and, in some cases, material deficiencies in areas such as:
- inconsistent and unclear reporting and terms, masking portfolio risks and challenging investor decisions;
- opaque interest margins and fee structures, obscuring the risk and cost to investors;
- weak governance and poorly managed conflicts of interest, risking harm to investors and confidence;
- poor valuation practices, impacting entry and exit prices, performance and fees; and
- inadequate practices in key risk areas, indicating poor preparedness for stress scenarios
ASIC sets out principles for “private credit done well”, highlights poor practices ASIC has already acted against, and foreshadows further surveillance and guidance updates (including for wholesale funds) in 2026.