BUZZ-Underlying Q2 redemption trends show signs of peaking, RBC says
Apollo Global Management Inc APO | 0.00 | |
Ares Management Corporation ARES | 0.00 | |
Blackstone Inc. BX | 0.00 | |
Brookfield Asset Management Ltd. Class A BAM | 0.00 |
** Underlying trends from recent Q2 redemption requests at major non-traded private credit funds show signs of peaking, RBC analyst Bart Dziarski says
** While redemption requests mostly increased at major funds sequentially, top asset managers have highlighted a regional split among investors
** Top asset managers saw U.S. redemption requests fall sequentially in Q2 tender offers even as offshore investors drove up overall redemption requests
** Ares ARES.N saw U.S. private wealth requests decline 35% sequentially, while Apollo's APO.N U.S. onshore requests saw a decline to 4.3%
** "We are seeing greenshoots in the data. We could be past the worst in terms of redemption requests and net flows having bottomed," Dziarski says
** RBC highlights Oaktree as a positive outlier in Q2 as redemption requests at its private credit fund declined sequentially, bucking the broader trend
** The fund's portfolio strength will serve to enhance Oaktree's brand and market positioning among wealthy investors, Dziarski says.