The Australian Securities & Investments Commission has made an interim stop order under the design and distribution obligations (DDO) against the La Trobe US Private Credit Fund, restricting the product’s offer and promotion to retail investors due to concerns that its target market determination may not align with the fund’s risk profile. The order prevents La Trobe Financial Asset Management Limited from dealing in interests in the fund, issuing a product disclosure statement for it, or providing general financial product advice to retail clients recommending an investment. ASIC’s concerns were that the Target Market Determination (TMD) suggests an inappropriate level of portfolio allocation given the fund’s risks and does not adequately specify an investment timeframe for retail clients. The fund invests primarily in senior secured first-lien term loans to unrated US corporate middle-market companies, which ASIC described as involving above-average risk, volatility and potential loss of principal; it was registered on 21 May 2024 and reported 215.8 million in net assets at 31 December 2024, with 8.2 million raised in Class B units in the half-year to that date. The stop order referral arose from ASIC’s retail private credit surveillance focusing on fund transparency, governance, valuation practices, conflicts management and fair treatment of investors. The interim order is valid for 21 days unless revoked earlier, and ASIC noted it has issued 91 interim stop orders and one final stop order under the DDO regime since its inception.

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