Does a slowing economy increase the risk of loan defaults in private debt?

Well-run private debt funds use rigorous scenario testing and real-time monitoring to mitigate risks. Historical net write-offs by banks peaked at just 0.68% during the GFC and were 0.04% in September 2024, demonstrating strong resilience across economic cycles.

Does a loan default always result in a credit loss?

No. Private debt investors are protected by their seniority in the capital structure. Senior debt holders get repaid first, before subordinated debt, preferred equity, and common shareholders. Covenants and controls act as early warning signals allowing lenders to engage with borrowers to mitigate financial loss.

Are all private debt managers the same?

No. Private debt managers differ significantly in scale, credit skills, and experience. Quality managers need sizable assets under management, bank-level credit skills, extensive networks, and the ability to directly originate and diversify loans across borrowers to achieve optimal outcomes.

Does commercial real estate debt put capital at risk in a property downturn?

Property owners face greater risk than lenders. With typical loan-to-value ratios of 60%, owners' equity acts as a buffer. Even if property values fall significantly, lenders can compel borrowers to restore their position or pursue asset sales to maximize recovery without necessarily incurring losses.

Are non-bank lenders lenders of last resort?

No. Competent private debt managers lend to quality companies and often compete with banks or work alongside them in lending syndicates. Post-GFC regulations requiring banks to hold more capital have created financing gaps that private debt fills for established companies with sound fundamentals.

Existing minority shareholders increase equity ownership in Metrics Credit Holdings Pty Ltd

Metrics Credit Holdings (“Metrics”) today announced an increased equity investment by its long-standing institutional shareholder partners, Pinnacle Investment Management Group Limited (“Pinnacle”), and the strategic partnership established between the National Pension Service of Korea (NPS) and Townsend Group (the “Partnership”).

Pinnacle has been a shareholder in Metrics since 2018, with the Partnership investing in 2025. The increase in ownership reflects strong alignment with Metrics’ strategy and confidence in the firm’s consistent execution, performance and growth ambitions.

Pinnacle and the Partnership will acquire the equity interest of co‑founding shareholder Graham McNamara, following his retirement on 31 March 2026, acquiring his shares in Metrics Credit Holdings Pty Limited (“MCH”).

Under the transaction:

Pinnacle will acquire an additional 6.80% interest, increasing its equity interest in MCH to approximately 35%; and
The Partnership will acquire the remaining 6.37% interest, increasing its minority equity interest to just under 10%.

Metrics currently manages assets of in excess of A$35 billion and employs more than 500 people across nine offices globally. It remains a majority founder-controlled business, with Andrew Lockhart, Justin Hynes and Andrew Tremain retaining majority management control and continuing to lead the firm.

Following his retirement, Graham McNamara will continue as a member of the Metrics Credit Partners Investment Committee.

Commenting on the transaction, Metrics Group CEO & Managing Partner Andrew Lockhart said:

“We are pleased to confirm the agreed transition of equity in the business to our existing strategic shareholder partners, Pinnacle and the NPS/Townsend partnership, who continue to demonstrate strong support for Metrics’ future growth and success. I would also like to thank and acknowledge Graham McNamara’s significant contribution to Metrics over the past 14 years, bringing deep experience, strong leadership and unwavering commitment to delivering strong outcomes for investors. We are delighted that Graham will continue to be involved with the business in an ongoing advisory capacity.”

Pinnacle Managing Director, Ian Macoun, said:

"Pinnacle is proud to have worked alongside the Metrics team over the past decade as the Group has grown to become one of the Asia Pacific region's largest alternative investment managers. We continue to have enormous confidence in the ongoing domestic and international growth of Metrics, particularly as more investors recognise the benefits that can be delivered by experienced, highly diversified and large-scale private markets managers.”

Media Contact

Joel.Labi@metrics.com.au

Email us
invest@metrics.com.au

1300 010 311
Mon-Fri 9:00 - 5:30