MA Financial shares tumbled as the firm moved to limit withdrawals from a fund with private credit exposure, underscoring investor risk in the sector and personal losses by Pridham surpassing A$93 million this year.

Australia’s roughly A$200 billion private credit market is under strain from borrower defaults, including the Bathla Group collapse, impacting publicly listed players like Centuria Capital and unlisted lenders such as CVS Lane Capital Partners and Gemi Investments.

Yet some investors remain confident in private credit, with Pinnacle Investment Management boosting its stake in Metrics Credit Partners to 35% and signaling belief in the sector’s growth.

ASIC has warned about private credit risks, calling for solid asset valuations and greater transparency as defaults rise, redemptions tighten, and growth slows.

MA Financial’s real estate fund reported more than 30% of its loans by value in default for at least 30 days as of July 31, raising questions about the security of private credit loans in real estate.

Sydney Swans chairman Andrew Pridham faces a challenging year as MA Financial Services, the asset manager he co-founded, contends with investor concerns over private credit exposures amid high-profile loan defaults.

MA Financial CEO Chris Wyke recorded a A$46 million loss on his MA Financial shares, while former Collingwood president Jeff Browne’s losses remained under A$1 million.