The Fin What LaTrobe and Jon Adgemis reveal about the private credit boom
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Oct 1, 2025 Join Jonathan Shapiro, a senior reporter at the Australian Financial Review, as he delves into the changing landscape of private credit in Australia. The discussion centers on ASIC's crackdown on La Trobe Financial and its implications for super investors. Shapiro emphasizes the risks involved, including the issues with La Trobe's disclosures and the high percentage of subprime mortgages. The conversation also explores whether non-bank lenders are essential or too risky, highlighting the balance between opportunity and caution in the private credit market.
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ASIC Targets A Major Retail Lender
- ASIC slapped stop orders on three La Trobe products holding about $12 billion in assets and serving retail investors.
- The action alarmed many because La Trobe manages roughly $20 billion and 120,000 investors.
Regulator Flags Excessive Allocation Guidance
- ASIC found La Trobe's target documents suggested up to 50% allocation was appropriate, which regulators deemed too high.
- Regulators think investors locking money in higher‑risk funds should allocate far less of their portfolios.
Half The Mortgages Are Below Prime
- About half of La Trobe's 12‑month account mortgages are below prime, exposing investors to higher credit risk.
- The presence of subprime-style loans raised concerns reminiscent of past mortgage crises.
