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Fears of rising defaults and a systemic crisis from private credit don’t reflect the underlying fundamentals of private loan portfolios and returns, according to Blackstone’s head of private wealth.
A wave of redemptions is causing fresh concerns about the risks of private credit, with Ares Management, Apollo Global Management and others capping investor withdrawals from their funds last month. Joan Solotar, global head of Blackstone Private Wealth, which manages over $300 billion, said the capital flight isn’t justified by the likely returns and potential losses in individual funds.
“In my view, you’ve had all these calls that the house is on fire, when what we see is maybe a piece of burnt toast,” she said.
