Fewer advisors are considering adding more investments in private credit now than they were in 2024, per a recent survey.
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As many private market firms struggle to sell assets to return cash to their eagerly waiting investors, KKR’s profits soared in the Q2.
Life insurers have been big backers of private credit, attracted by the higher yields on debt issued by non-bank lenders.
The firm estimates that gross outflows from Apollo Debt Solutions will be roughly $700 million for the quarter.
A new report from Morningstar found that the drivers of investor interest have shifted noticeably over the past year.
Views on the proposal are complicated and decidedly mixed, including within the financial services industry itself.
The group limited withdrawals to 5% at its flagship private equity fund after second-quarter redemption requests reached nearly 10%.
The firm reported Wednesday that assets under management surpassed the historic $1 trillion milestone in the first quarter.
Concerns of AI disruption for software firms is had had investors yanking money from private credit funds, including Blackstone’s BCRED.
The fixed-income, currencies and commodities business generated revenue of just $4 billion in Q1, a 10% decrease from a year ago.
In recent days and weeks, private credit funds at KKR, Morgan Stanley and Blue Owl Capital have enforced redemption caps.
Investors asked to yank 21.9% from Blue Owl’s $20 billion Credit Income Corp. fund between January and March.
Most of JPMorgan’s big banking peers don’t have NAV loan agreements that let them proactively revalue assets.
Shares of major private-credit lenders are down significantly this year: Apollo has lost 26%, KKR 31%, Blackstone 30%, and Ares 35%.
The company’s new model portfolios are built primarily with ETFs or mutual funds, but they use less-liquid funds for private holdings.
Rather than sticking with stocks and bonds, millennials are seeking higher returns from alternatives like crypto and private credit.