“We are seeing significant demand for private credit,” Chief Financial OfficerCurtis Buser said on the firm’s earnings call.
The largest portion of third-quarter fundraising at Blackstone, Carlyle and KKR was earmarked for credit wagers.
As the credit units help fill the void left by Wall Street, they’re also giving private equity dealmakers a boost. In recent weeks, direct lenders provided some financing for Blackstone to strike a deal for a majority of Emerson Electric Co.’s climate-technology business.
When UK pension funds turned to fire sales to meet an onslaught of margin calls from banks last month, Apollo and Blackstone swooped in to invest in bundles of loans. Apollo’s trading desk purchased $1.1 billion of highly rated collateralized loan obligations, according to Apollo Co-President Scott Kleinman.
PE firm shares have slid this year amid a tougher deal outlook
Shares of Apollo have fallen 15% this year, outperforming the 17% decline for the S&P 500. Blackstone and KKR both dropped 30%, while Carlyle tumbled 48%.
This article was provided by Bloomberg News.