Private credit firm CVS Lane joins list of firms limiting investor pullouts
Australian private credit firm CVS Lane has suspended investor redemptions following the collapse of property developer Bathla Group. The firm cited the need to protect investor interests amid financial uncertainty surrounding the developer's administration.
Why it matters
This highlights growing stress in the private credit sector and the risks associated with property development lending in a high-cost environment.
Private credit firm CVS Lane says it had significant loans to collapsed property developer Bathla. ( Supplied: Bathla website )
Link copied Share Share article Stress in Australia's private credit sector is intensifying.
A private lender with significant loans to collapsed developer Bathla called CVS Lane is the latest private credit firm to limit "investor redemptions".
The ABC has confirmed that the investment manager told investors on Thursday that its CVS Lane First Mortgage Fund and CVS Lane Property Finance Fund had exposure to Bathla across nine different loans.
Investor redemptions are when investors in private credit firms seek to get some or all of their money returned in the face of concerns about the safety of their investment because of potentially overly risky lending.
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