Metrics, a private credit investment firm managing more than $3 billion across several funds, has attributed delays in the approval of its audited accounts to the unexpected death of a KPMG auditor. The auditor, Quang Dang, died in April, a development Metrics cited in media briefings as the primary reason for the postponement in finalizing financial statements for three of its funds.

KPMG sources familiar with the situation maintained that the firm’s ongoing internal challenges, including recent reputational issues and executive departures following whistleblower revelations, have not impaired its ability to conduct audits in a timely manner. These sources noted that KPMG had increased staffing on the Metrics audit team to handle the complexity of the accounts, suggesting that the delay was unlikely to be solely attributable to the auditor’s death.

Metrics operates by channeling capital from retail shareholders through its ASX-listed real estate-related funds—Metrics Real Estate Fund, Metrics Opportunities Fund, and Master Income Fund—as well as from professional investors into private credit funds. The firm lends to borrowers who either lack access to traditional bank financing or choose to augment it, generating revenue through higher interest rates and structuring fees. The business has historically remunerated introducers who bring loan opportunities, contributing to significant wealth for its founders, Andrew Lockhart, Justin Hynes, Andrew Tremain, and Graham McNamara.

The firm’s lending focus on real estate has come under pressure amid rising interest rates, inflation driving up construction costs, and market disruptions attributed in part to recent taxation changes implemented by the Australian Labor Party. The broader sector has seen instability highlighted by the recent appointment of administrators to property developer Bathla, a company wholly funded by private credit, although Metrics confirmed it was not involved in lending to Bathla.

Investors were informed on Monday that KPMG’s audit of Metrics’ funds remained “incomplete” and that the final audited figures could differ materially from prior estimates. When questioned about the causes of the delay, including whether it stemmed from issues in Metrics’ preparation of accounts or KPMG’s auditing process, and whether concerns existed over loan valuations or solvency, none of the four managing partners responded directly. Instead, a company spokesman stated the audit was still a work in progress.

The situation has spurred debate over accountability, with some questioning the appropriateness of placing the blame on KPMG amid the firm’s well-publicized scandals, while others acknowledge the impact of an unexpected loss within the audit team. As of now, the final audited accounts for Metrics’ funds remain pending, leaving investors awaiting clarity on the financial position of these heavily leveraged credit vehicles.