A major Australian builder just collapsed.
40 private credit funds were lending to it...
The Bathla Group went into administration last week, owing around $3.2 billion. Almost all of it came from private credit funds.
- Roughly 40 private credit funds had exposure
- Individual loans ranged from $1.5M to $340M
- PAG Asia Capital was the largest lender at $730M
- CVS Lane Capital Partners reportedly 2nd at $250M
- Around 220 projects, 45 in active construction
Bathla grew fast on borrowed money. Then sales slowed, building costs rose, and lenders lost confidence.
Once Bathla went under, investors in those funds wanted out. Within days, three managers had suspended withdrawals.
- Centuria Bass Credit paused withdrawals
- MA Financial Group capped a $2.3B fund
- CVS Lane suspended applications and redemptions
- 360 Capital went into a trading halt
ASIC warns that Australia is seeing the first significant cracks in private credit and points out that most Australians hold some of it through their super.
Private credit sits at around $200 billion in Australia.
Do you know what your super is lending to?
A Major Australian Builder Just Collapsed - 40 Private Credit Funds Were Lending to It
The Bathla Group went into administration owing $3.2 billion, almost entirely to private credit funds, triggering withdrawal freezes at several managers and raising the first clear warning signs for Australia’s $200 billion private credit market.
Oct 28, 2026
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1 min read
