BUZZ-Most investors expect BDC redemption requests to increase in Q2, JPM survey shows
Apollo Global Management Inc APO | 0.00 | |
Ares Management Corporation ARES | 0.00 | |
Blue Owl Capital OWL | 0.00 | |
Morgan Stanley MS | 0.00 | |
Brookfield Asset Management Inc BN | 0.00 |
** Roughly 85% of investors believe total Q2 redemption requests across non-traded U.S. business development companies will be greater than Q1, according to a J.P. Morgan survey
** Q2 redemption windows at key U.S. non-traded BDCs began closing last month, with market participants keeping a close eye on the rate of withdrawal requests
** JPM analyst Kabir Caprihan surprised that roughly 15% of investors believed redemption numbers would be flat sequentially given the noise around the sector
** BDCs are investment vehicles for investors to gain exposure to private credit assets
** "While the majority of investors expect redemptions to increase, nearly 50% of that cohort expect redemptions requests to increase slightly or a net increase of 7%, while current new redemption requests have been running higher than 7%," Caprihan says
** Oaktree Strategic Credit Fund and Morgan Stanley's North Haven Private Income Fund received the most votes for redemption to be at the high end of the options provided - JPM