Blackstone Group President Jonathan Gray Talks Private Credit
Apr 18, 2024
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Jonathan Gray, President of Blackstone Group, talks about private credit tempo, real estate trends, job opportunities at Blackstone, and the impact of artificial intelligence. He also shares insights on when the Federal Reserve might adjust interest rates, and the growth and potential in the private credit sector.
Blackstone's success in private credit driven by broadening services offered to insurance companies and pension funds.
Transaction activity in capital markets on the rise supported by decreased cost of capital and increased availability of debt.
Deep dives
Private Credit Momentum and Expansion
Blackstone's success in the private credit arena is driven by strong performance and a broadening of services offered, including non-investment grade and investment grade activities. With a focus on serving insurance companies and pension funds, Blackstone anticipates continued momentum and growth in the private credit sector. The shift towards alternatives in fixed income investments signals optimism for future opportunities and investor enthusiasm.
Transaction Activity and Capital Market Recovery
Amid changing interest rates, transaction activity in capital markets is on the rise, supported by a decrease in cost of capital and increased availability of debt. While the timing of rate cuts remains uncertain, factors like tightened spreads and improved cost of debt suggest a favorable environment for deal-making. Blackstone remains optimistic about potential rate cuts and sees positive trends in inflation, indicating a patient yet proactive stance towards investment deployment.
Blackstone Group President Jonathan Gray speaks on Private-Credit tempo. He speaks with Bloomberg’s Sonali Basak about real estate, jobs at Blackstone, artificial intelligence and when the Federal Reserve might move on interest rates.