Credit strategies accounted for about $152bn of the $257bn total capital raised by six major publicly-listed alternative-asset managers in Q3, highlighting a continued shift of investor focus toward lending and debt-based platforms, according to a report by Bloomberg.
This included KKR & Co, which experienced its best fundraising quarter in over four years, raising $43bn, fuelled by demand for its credit products. The private credit sector has tended to perform better during the high interest rate environment than private equity buyouts, which are still to recover.
However, rate cuts and tightening spreads are likely to pose a challenge for the sector moving forward, according to a Bloomberg TV interview with Blackstone President Jon Gray, with shares in the firm which has $508bn in credit assets as of Q3 falling as much as 5.9%.
