Inside Alts: Private credit fears resurface

Summary

The video reports on private credit redemption concerns, focusing on Partners Group and Clif Water Corporate Lending Fund. It discusses a breakdown in correlation between the software ETF (IGV) and alternative asset managers, suggesting deeper issues in the private wealth channel. The host and reporter explore whether the redemptions are driven by software fears or broader structural problems.

• Partners Group capped half of nearly 10% redemptions.
• Clif Water Corporate Lending Fund received redemption requests totaling 17%, allowing only 5%.
• Software stocks have rallied 20% while alt managers failed to keep up.
• Correlation between IGV and alt managers dropped from 0.72 to 0.4 in April/May.
• Evercore ISI note suggests alts problems may be more about private wealth channel than software portfolios.
• Interest rates rising is seen as a tailwind for private credit.
• Host contrasts redemption concerns with Solomon's comments on greed vs. fear in public equities.
• SpaceX IPO and Alphabet deal upsized discussed in context of equity market liquidity.