Alt Managers Grow Wealth AUM 16% as Q2 Redemptions Ease and New Products Multiply
Updated
Updated · Wealth Management · Aug 12
Alt Managers Grow Wealth AUM 16% as Q2 Redemptions Ease and New Products Multiply
2 articles · Updated · Wealth Management · Aug 12
Summary
Blackstone’s private-wealth AUM reached $324 billion, up 16% year over year, as public alternative managers broadly reported second-quarter growth in wealth fundraising and said redemption pressure is starting to ease.
Redemption data still showed strain in non-traded BDCs: Stanger said the sector raised $2 billion in Q2, down 82%, while net outflows hit $3.8 billion and repurchase requests reached 12.4% of NAV.
Managers said the worst may be passing, with three NAV BDCs reporting third-quarter requests equal to 4.6% of NAV versus 7.9% in Q2, and firms including Blackstone and Blue Owl citing shrinking queues and fewer new requests.
Fundraising remained concentrated among large platforms: Ares raised $3.9 billion in the quarter, KKR took in $3 billion for its K-Series, and StepStone posted a record $2.8 billion of subscriptions.
Executives are using the respite to widen product menus—interval funds, multi-asset vehicles, daily pricing, tokenization and secondary-market liquidity—as they compete for advisors, retirement assets and mass-affluent investors.
As managers cap redemptions to prevent fire sales, are retail investors trapped in a dangerous illusion of liquidity within private markets?
With alternative funds shifting toward daily valuations, will this new transparency destroy the very illiquidity premium that generates their high returns?
Can new secondary market infrastructure truly prevent a retail bank run on private assets during the next major economic downturn?