Goldman Sachs Asset Management reports that while private credit has faced difficulties, particularly with redemption requests from retail investors due to concerns over software loans, the overall appetite for alternative investments remains robust.
A survey of 1,000 high-net-worth and ultra-high-net-worth investors revealed that 93% are satisfied with their alternative investments, and 97% believe their investments have met or exceeded expectations. Kristin Olson, Goldman's global head of alternatives for wealth, noted that investors who are more educated about these assets are largely unfazed by recent headlines.
The survey indicates a resilience among investors and a growing interest in private investing. Although some funds have limited withdrawals and Blue Owl Capital paused liquidity payments, Olson anticipates a recovery in private credit as redemption requests begin to stabilize.
She also highlighted that concerns regarding software investments were exaggerated and that direct lending is currently offering attractive yields. Furthermore, the SEC's efforts to broaden access to alternative investments for individual investors could enhance participation in this market.
Olson suggests that diversification across various alternative assets, including private equity and infrastructure, is essential for investors, although access may vary based on investor wealth. Overall, the findings suggest a continued shift towards alternative investments, despite the current challenges in the private credit market