Key Takeaways
- • ASIC has issued interim stop orders barring Angas Securities from offering interests in two managed investment schemes: the Angas Prime Income Fund and the Angas Direct Mortgage Fund.
- • 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 cited disclosure failures in the funds' PDSs, including inadequate disclosure of Angas Securities' net asset deficiency and breach of net tangible asset requirements.
- • The Angas Prime Income Fund faces a separate disclosure concern over its exposure to the Bathla Group, a property developer that collapsed in August with $3.4 billion in debt.
- • ASIC will consider whether final stop orders should be made after giving Angas Securities an opportunity to be heard, and will publish its private credit surveillance results on 10 November 2026.
Summary
The Australian Securities and Investments Commission (ASIC) has temporarily barred private credit firm and fund manager Angas Securities from offering interests in two managed investment schemes. The Adelaide-based firm's Angas Prime Income Fund (ARSN 091 887 400) and Angas Direct Mortgage Fund (ARSN 151 979 645) are subject to the interim order. As of 30 June 2026, the funds held approximately $114 million in investor money, with $78.6 million in the Angas Direct Mortgage Fund and $35.1 million in the Angas Prime Income Fund.
ASIC's intervention centres on the funds' product disclosure statements (PDSs). According to the regulator, the PDSs do not adequately inform investors about Angas Securities' financial position or the risks arising from it, including a net asset deficiency and a breach of net tangible asset requirements.
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 fund failed to adequately disclose material information, including its exposure to Bathla Group borrowers, defaults, liquidity, loan-to-value ratios and portfolio diversification. The regulator also found that loan-to-valuation information was not presented in a clear, concise and effective manner. Angas Securities is among the lenders under ASIC scrutiny for its Bathla exposure.
ASIC commissioner Simone Constant said the regulator's message to private credit fund managers is clear: investors need timely information about the risks they take on, particularly when private credit loans run into difficulty. Constant said one of ASIC's main concerns is establishing the extent of retail investor exposure. ASIC said it will continue its broader scrutiny of private credit and act swiftly where investors are not given the full picture.
ASIC will consider whether to make final stop orders and will first give Angas Securities an opportunity to be heard. The firm has said it is undertaking a capital raising, which its directors expect to be resolved by 31 December 2026. ASIC will publish the results of its private credit surveillance on 10 November 2026.
ASIC's intervention centres on the funds' product disclosure statements (PDSs). According to the regulator, the PDSs do not adequately inform investors about Angas Securities' financial position or the risks arising from it, including a net asset deficiency and a breach of net tangible asset requirements.
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 fund failed to adequately disclose material information, including its exposure to Bathla Group borrowers, defaults, liquidity, loan-to-value ratios and portfolio diversification. The regulator also found that loan-to-valuation information was not presented in a clear, concise and effective manner. Angas Securities is among the lenders under ASIC scrutiny for its Bathla exposure.
ASIC commissioner Simone Constant said the regulator's message to private credit fund managers is clear: investors need timely information about the risks they take on, particularly when private credit loans run into difficulty. Constant said one of ASIC's main concerns is establishing the extent of retail investor exposure. ASIC said it will continue its broader scrutiny of private credit and act swiftly where investors are not given the full picture.
ASIC will consider whether to make final stop orders and will first give Angas Securities an opportunity to be heard. The firm has said it is undertaking a capital raising, which its directors expect to be resolved by 31 December 2026. ASIC will publish the results of its private credit surveillance on 10 November 2026.
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