Alts slide as Blackstone's flagship private credit fund hit by surge in redemptions

Some alternative asset managers fall after surge in redemption requests hit Blackstone's BX.N flagship credit fund, BCRED

Blackstone BX.N slides 8%, Ares Management ARES.N down 5.5%, KKR KKR.N falls 5%, Blue Owl Capital OWL.N slips 7% and Apollo Global Management APO.N down 6%

BCRED Q1 redemptions totaled 7.9%, exceeding 5% of shares typically available for repurchase

"This was above investor expectations based on our conversations," Barclays analyst Benjamin Budish says; adds it should weigh on shares across alternative asset managers

Anxiety has climbed in private credit market due to questions about valuations and transparency, while broader credit quality concerns were fanned by two bankruptcies last year

"Investors redeeming 7.9% from BCRED, obviously a negative headline for a group that can't afford more bad headlines. With investors on edge with respect to private credit flows, the negative headlines will weigh today," Truist Managing Director Brian Finneran says