ASIC has made interim stop orders preventing Angas Securities Limited (Angas Securities) from offering interests in two managed investment schemes over concerns the funds’ product disclosure statements (PDSs) do not adequately disclose Angas Securities’ financial position and one fund’s exposure to the Bathla Group.

The interim stop orders prevent Angas Securities from offering, issuing, selling, or transferring interests in the Angas Prime Income Fund (ARSN 091 887 400) and the Angas Direct Mortgage Fund (ARSN 151 979 645).

ASIC is concerned that investors in both funds may not have been adequately informed about the financial position of Angas Securities and the risks arising from that position.

ASIC also has concerns about disclosures to investors in the Angas Prime Income Fund relating to its exposure to the collapsed Bathla Group and the risks arising from that exposure.

ASIC Commissioner Simone Constant said, ‘Our message to private credit fund managers is crystal clear. Investors need clear and timely information about the risks they are taking on, particularly when circumstances change and private credit loans run into difficulty.

‘The collapse of the Bathla Group has highlighted the risks that can emerge in private credit when this message is ignored. The Bathla collapse drives home the importance of strong governance, appropriate valuations and clear disclosure to private credit investors.

‘ASIC is engaging closely with voluntary administrators to trace the $3.2 billion in funds loaned to Bathla and making a range of inquiries focused on taking further action as appropriate. One of our main concerns is to understand the extent to which there are retail investors affected.

'ASIC will continue its broader scrutiny of private credit and will continue to step up our actions. We will act swiftly where we are concerned investors are not being given the full picture about the risks they face,’ Commissioner Constant said.

ASIC is concerned that:

• The Angas Prime Income Fund PDS does not adequately disclose a range of material information, including its exposure to Bathla Group borrowers, defaults, liquidity, loan-to-value ratios, portfolio diversification and that information about loan to valuation limits is not presented in a clear, concise and effective manner.
• The PDSs for both the Angas Prime Income Fund and Angas Direct Mortgage Fund do not disclose material information about Angas Securities’ own financial position, including a net asset deficiency, breach of net tangible asset requirements, and proposed capital raising, or what could happen to the funds if Angas Securities cannot raise sufficient capital to continue as a going concern.

ASIC will consider whether final stop orders should be made after giving Angas Securities an opportunity to be heard.

ASIC will publish the results of its next private credit surveillance on Tuesday 10 November 2026.

Background

Angas Securities holds Australian financial services licence 232479 and is the responsible entity of the Angas Prime Income Fund and the Angas Direct Mortgage Fund.

As at 30 June 2026, the funds held approximately $114 million in investor funds, comprising $78.6 million in the Angas Direct Mortgage Fund and $35.1 million in the Angas Prime Income Fund.

The two funds provide exposure to mortgage lending but operate using different investment structures. The Prime Fund is a pooled mortgage fund, and the Direct Fund is a contributory mortgage fund.

Angas Securities’ financial statements state that the crystallisation of a loss on a first mortgage loan investment (not directly related to the Bathla group) caused it to breach the net tangible asset requirements applying under its Australian financial services licence and it is undertaking a capital raising, which its directors expect to be resolved by 31 December 2026.