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The earnings season for alternative asset managers is underway and should provide a window into the private market outlook for the second half of the year. Earnings, of course, shine the spotlight on the large diversified platforms, a group that generally proves more resilient to tough market conditions.
The first data point came yesterday when Blackstone announced second-quarter fundraising, deployment and completion totals that defied the broader industry downturn. AUM posted a significant gain. The capital raising figures highlighted an industry trend in which larger asset managers are able to attract a larger share of capital. In July, nine funds were in the market with fundraising goals of $20 billion or more.
For fundraising lenders, fundraising, deployment and completion figures are the most important data to forecast long-term borrowing demand, and publicly listed private asset managers should continue to outperform the broader market on these metrics, although some moderation is possible. Stock market jockeys have turned their attention to investment performance numbers, which show signs of a challenging environment. If sustained, weak performance could potentially slow capital allocations to long-term private strategies, but this risk must be weighed against the performance of public markets. Additionally, when evaluating investment performance numbers for the quarter, relative to their stock market counterparts, fundraising lenders will be much more in tune with the importance to be placed on a single quarter out of the 40 quarters that make up a typical closed-end investment. finance life.
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