Sydney-based Longreach Credit Investors has become the latest private debt manager to block investor withdrawals, marking a significant escalation in the sector’s liquidity crisis.
The firm’s decision to gate redemptions follows a wave of similar moves by global industry leaders, including Apollo Global Management and Ares Management, which have increasingly restricted access to capital amid a challenging market environment.
Longreach is the second Australian private debt player to impose such restrictions, following Merricks’ decision to gate its $1.
This development confirms that the stress in private credit is no longer confined to major US or European funds.
Longreach is the second Australian private debt player to impose such restrictions, following Merricks’ decision to gate its $1.2 billion flagship fund last year.
The spread of gating to local managers suggests that underlying asset illiquidity and rising redemption pressures are becoming systemic issues for the asset class, regardless of geography.
The move by Longreach underscores a sharp reversal for private credit, an asset class that has long been marketed to institutional investors as a source of steady, uncorrelated returns with predictable liquidity profiles.