Sydney-based unlisted margin lender Lift Capital Partners is in administration, Sky News reports.
It has been suggested that the firm used a similar model to the collapsed broker Opes Prime in its margin lending deals with clients.
According to The Australian Financial Review, the Australian Securities and Investments Commission is looking into the firm's business.
Lift Capital's website says it specialises in "providing structured equity products that enable investors to borrow money to invest in a wide range of assets."
"As a specialist, independent provider we are better equipped to develop innovative products and services for all investors as well as seeking to tailor solutions for those who may not meet the typical lending criteria of other institutions," it says.
Lift Capital has 1600 clients and is backed by American bank Merrill Lynch.
The Sydney Morning Herald has reported that, prior to the collapse, there is no suggestion of irregularities but that firm may have to sell off its loan book to remain solvent.
