BUZZ-Alt asset managers' recovery could be delayed after Cliffwater update, TD Cowen says
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** TD Cowen says recovery of alternative asset manager stocks might get pushed beyond Labor Day after Cliffwater tender offer results were revealed on Tuesday
** Cliffwater's flagship non-traded $31.3 billion private credit fund saw investors request to pull 17% of shares in the second quarter, worse than the 14% requested in the first quarter
** TD Cowen's Bill Katz expects the industry to further migrate towards the 5% withdrawal requests limit
** Cliffwater update wasn't overly surprising given investor and media scrutiny intensified through April around direct lending, but additional redemption updates will be in sharp focus, Katz says
** Q2 redemption windows started closing past Friday and will be spread across June, with major private credit funds expected to report in coming weeks
** "Should the next few updates (that cover into March/April prior tender windows) fail to show improvement, the group may linger through YE, net of geopolitical risk dynamics" - Katz
