Goldman says Blackstone BCRED redemptions have negative read for Blue Owl

Goldman Sachs notes that Blackstone (BX) reported flow trends across a number Wealth products, including that BCRED saw a gross redemption rate of 7.9% in Q1. All-in, BCRED saw $1.4B of net outflows for Q1 and the firm expects net flows for Retail Private Credit vehicles could deteriorate further into Q2 given lower prospective returns and “considerable negative media coverage on this topic,” the analyst tells investors. This is also likely to serve as a negative read-across for Blue Owl Capital’s (OWL) non-traded BDCs given their relatively similar vintage, the analyst added. The firm continues to view this as near-term management fee and FRE headwind for stocks with more material exposure to this part of the market – largely Blue Owl and Blackstone and to a lesser degree Ares Management (ARES) and Apollo Global (APO) – Goldman stated.