Street View: Asset managers' Thursday rally a sign that sector likely past the bottom on redemption trend
BUZZ-Street View: Asset managers' Thursday rally a sign that sector likely past the bottom on redemption trend ** U.S. alternative asset managers rallied on Thursday after Blackstone revealed investors sought to pull out 10% of shares in the second quarter from the $79 billion Blackstone Private Credit Fund, which analysts said was "better than feared"
** Blackstone BX.N closed up 7.5%, Blue Owl Capital OWL.N 5%, Ares Management ARES.N 6%, KKR KKR.N 5.5%, Carlyle Group CG.O 3%, and Apollo Global Management APO.N 3.3%
PAST THE BOTTOM
** RBC analyst Bart Dziarski says positive stock price reactions indicate much higher redemption requests were expected
** While RBC expects other U.S. alts with non-traded private credit vehicles to report higher redemption requests in Q2, Thursday's share price reactions are an indication the sector is past the bottom on this theme, Dziarski says
** Evercore analyst Glenn Schorr says 10% requests at BCRED is better than feared and consistent with the step-up that Cliffwater saw few days ago
** "While redemptions will very likely remain elevated for the foreseeable future, the big slowdown in gross sales this quarter is a larger, and more prolonged issue," Schorr says
** TD Cowen analyst Bill Katz says improving redemption trends among key U.S. alts could accelerate sector's recovery
(Reporting by Arasu Kannagi Basil in Bengaluru)
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