Australia's securities regulator has issued interim stop orders against two private credit investment funds managed by Angas Securities, citing concerns that investors may not have received adequate information about financial risks, according to a report by Bloomberg.

The Australian Securities and Investments Commission (ASIC) has prevented the Adelaide-based firm from offering, issuing, selling or transferring interests in the Angas Prime Income Fund and Angas Direct Mortgage Fund. The regulator raised concerns about disclosures relating to Angas Securities' financial position and the Prime Income Fund's exposure to collapsed property developer Bathla Group.

Bathla entered insolvency in August with approximately AUD$3.4bn in liabilities, much of it owed to private credit funds. Angas Securities held around AUD$114m in investor funds at the end of June, according to ASIC.

The intervention comes amid increasing regulatory scrutiny of Australia's private credit market, particularly around asset valuations, liquidity and disclosure standards. ASIC is expected to publish an update on its private credit surveillance on 10 November, as concerns grow over whether investors are being adequately informed of deteriorating underlying loan exposures.