Buy alternative asset GPs over private credit
The speakers argued that investing in the public equities of alternative asset managers (GPs) offers a better risk-reward profile than buying the underlying private credit products.
The argument
The guest noted that while underlying private credit is still trading at par without discounts, the public equities of GPs like Blackstone and KKR have experienced sharp sell-offs, offering a discounted entry point into the GP level.
The thesis, stress-tested
✓ What validates it
- ✓Stabilization or rebound in quarterly private credit fundraising metrics
- ✓Continued open-market stock purchases by GP executives
▸ Risks discussed
- ▸Slowing private credit fundraising volumes on a gross basis
- ▸Public market volatility impacting GP stock prices disproportionately
Hear it yourself
"the narrative gets sucked in and pushed out so quickly. Like the equities better than the products would be my would be my comment. I Oh, for sure. I would I like the equities better. I'd rather be a GP. That's me. If I could buy KKR and Blackstone, like, $20 a year ago from somebody on on a on a private credit product. And I was looking at it. I was like it was, like, unlevered, 13% private credit"
39:21 · 39:21
AFFILIATE LINK · ZORTIX MAY EARN A COMMISSION · NEVER A RECOMMENDATION TO TRADE