High-Net-Worth Clients Continue to Favor Private Credit Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: seekingalpha
- Capital Attraction Continues: Goldman Sachs' Kristin Olson stated that despite recent redemption pressures, private credit continues to attract capital due to the significant premium associated with illiquid investments, indicating ongoing interest from ultra-high-net-worth clients.
- Portfolio Allocation Advice: Goldman Sachs recommends that ultra-high-net-worth clients allocate about 25% of a moderate-risk portfolio to alternative investments, aiming to achieve risk-adjusted returns through asset classes like private credit, particularly suitable for those who can bear illiquidity risks.
- Redemption Pressure Impact: Currently, at least a dozen private credit funds are facing redemption requests, prompting firms like Apollo Global Management and Ares Management to curb withdrawals, a situation partly linked to concerns over software companies vulnerable to AI disruption, highlighting market sensitivity to liquidity risks.
- Opportunity in Education Moment: Olson emphasized that the current state of private credit represents an “education moment” that will benefit investors over time, asserting that despite some misinformation leading to concerns, the asset class is expected to continue growing and attracting more investor participation.
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Analyst Views on GS
Wall Street analysts forecast GS stock price to rise
12 Analyst Rating
5 Buy
7 Hold
0 Sell
Moderate Buy
Current: 900.000
Low
604.00
Averages
951.45
High
1100
Current: 900.000
Low
604.00
Averages
951.45
High
1100
About GS
The Goldman Sachs Group, Inc. is a global financial institution that delivers a range of financial services to a large and diversified client base that includes corporations, financial institutions, governments and individuals. Its segments include Global Banking & Markets, Asset & Wealth Management and Platform Solutions. The Global Banking & Markets segment offers a range of services, including financing, advisory services, risk distribution, and hedging for its institutional and corporate clients. It facilitates client transactions and makes markets in fixed income, equity, currency and commodity products. The Asset & Wealth Management segment manages assets and offers investment products across all asset classes to a diverse set of clients. It also provides investing and wealth advisory solutions. The Platform Solutions segment includes consumer platforms, such as partnerships offering credit cards and point-of-sale financing, and transaction banking and other platform businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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