WSJ Your Money Briefing What's News in Earnings: Why Some Money Managers Are Trailing the Market
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Aug 11, 2025 The podcast dives into the surprising dip in shares of private-equity firms like Blackstone and Apollo, contrasting their struggles with the strong performance of traditional asset managers such as BlackRock. It examines the challenges facing alternative asset managers, including low lending spreads and high interest rates. Notably, Carlyle Group stands out for its resilience and growth, hinting at potential gains. The discussion also highlights how changes in regulations could create new growth opportunities for the asset management sector.
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Private-Equity Stocks Lag Despite Optimism
- Alternative asset managers are lagging because lending spreads are compressed and selling prices for acquired businesses may be lower than paid.
- Telis Demos says that reduces future returns, fundraising, and incentive fees for those firms.
Higher Rates Raise Funding Costs And Limit Exits
- Higher interest rates raise private managers' funding costs and squeeze returns.
- Telis Demos says that also makes IPOs and sales less plentiful, limiting ways to realize gains.
Carlyle's Rise Tied To New Leadership
- Carlyle's stock rose as investors bet on new CEO Harvey Schwartz and a shot at peer valuations.
- The firm mixed private equity skill and private credit exposure that appealed to the market.