Updated
Updated · Seeking Alpha · Jun 4
KKR, Apollo Lead Private Credit Selloff as Cliffwater Extends Q2 Redemption Curbs
Updated
Updated · Seeking Alpha · Jun 4

KKR, Apollo Lead Private Credit Selloff as Cliffwater Extends Q2 Redemption Curbs

3 articles · Updated · Seeking Alpha · Jun 4

Summary

  • KKR fell 5.43% to $89.32 and Apollo 3.70% to $123.99 in S&P 500 pre-market trading after Cliffwater was reported to have limited withdrawals at its private credit fund for a second straight quarter.
  • Ares dropped 4.90% to $121.99 and Blackstone 5.45% to $108.65, extending pressure across listed alternative-asset managers tied to private credit.
  • The move deepened investor concern that redemption limits are spreading through private markets, raising fresh questions about valuations, liquidity and asset quality.
  • Those worries had already intensified after Partners Group capped withdrawals at 5% in an $8.6 billion fund and then said more funds would face similar limits.

Insights

Private equity promised high returns, but investors now face locked gates. Is this the sector's unavoidable new reality?
With trillions trapped in unsold assets, are 'paper' valuations in private markets facing an imminent, massive correction?
As cash becomes king, can new income-focused strategies truly replace the old private equity buyout model's returns?