Goldman Sachs Asset Management: Private Credit Woes Not Deterring Demand for Alternatives
Despite a difficult year in private credit, demand for alternative investments remains strong among high-net-worth and ultra-high-net-worth investors. A survey by Goldman Sachs found that the majority of current alternative investment owners are satisfied with their returns and remain unfazed despite recent market volatility. While redemption requests surged earlier this year due to concerns over software loans, some funds have started limiting withdrawals or adjusting liquidity terms. Goldman's research highlights a growing interest in private equity, infrastructure, and real assets as investors diversify within the alternatives space. Kristin Olson of Goldman Sachs noted that while challenges persist—such as higher interest rates impacting existing credits—the sector is showing signs of stabilization with moderating redemption requests and improving yields for prudent lenders. Retail access to these investments remains limited compared to wealthier clients, but regulatory efforts are underway to expand eligibility criteria for accredited investors. This could further broaden participation in the alternative investment market.
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Topics: alternative investments investor sentiment private credit redemption requests