Well, it's been a rough year for investors in so-called alternative asset management managers. Those are private equity investment firms like KKR, Apollo, Blackstone, Hamilton Lane, and others. In fact, KKR and Apollo, those stocks down 18% in just the past 90 days.Both are lower for the year as well. But your market navigator says the better days are ahead. Let's find out why.Jed Ellerbrook is fun portfolio manager at Argent Capital Management. It's not a group, Jed, that we talk about a whole lot. Hamilto ...

KKR co-founder Henry Kravis tells @flacqua he's not worried about systemic risk in private credit, against warnings that the collapse of Tricolor and First Brands in the US could signal wider trouble https://t.co/cnRClLp4qv https://t.co/2bkEeULqKH ...

Macroeconomic Outlook - Globalization is being rewired around security, resilience, and regional blocks, with Asia as a prime example [1] - The rules-based global economy is shifting towards transactional great power competition, creating opportunities [2] - The US administration aims for a more level playing field, with private activity playing a significant role in energy and data infrastructure due to capital needs and national security concerns [3] - Inflation is expected to be stickier globally, and tariffs will eventually impact companies or customers [6] - The current US economy resembles a "K-shaped" economy, widening the gap between the wealthy (those with assets) and those living paycheck to paycheck [7] Investment Strategy & Opportunities - The firm is a strong believer in Europe, having invested over $25 billion this year alone [1] - Germany's "made for Germany" program requires external capital beyond the capacity of its large companies, creating investment opportunities [4] - Key investment areas include security, defense and dual technology, and critical resources, focusing on resilience [4][5] - Private credit is generally viewed as not posing a systemic risk, despite concerns about firms entering the market without sufficient expertise [9][10][11] Financial Considerations - With inflation around 3% and a ten-year treasury yield slightly above 4%, the real rate is only about 1% [5]

Group 1: Globalization and Economic Shifts - The concept of globalization is not ending but is being rewired around security and resilience, with a focus on regional blocks, particularly in Asia and Europe [1] - A structural shift is occurring where the rules-based global economy is transitioning to a transactional great power competition, creating new opportunities [2] - The U.S. administration aims to create a more level playing field, emphasizing the role of private capital in addressing needs for energy and data infrastructure, which are now tied to national security [3] Group 2: Investment Opportunities - Significant capital is required for initiatives like Germany's "Made for Germany" program, indicating a need for outside investment to complement domestic corporate contributions [4] - Key areas for investment include defense and dual technology, critical resources, and resilience against economic shocks [4][5] - The expectation of stickier inflation globally suggests that companies and consumers will face increased costs, impacting investment strategies [6] Group 3: Economic Disparities - The COVID-19 pandemic has widened the gap between those with capital and those without, highlighting the need for strategies to ensure broader economic benefits [7][8] - The private credit market is experiencing scrutiny, with concerns about firms entering the space without adequate experience, although systemic risks are not anticipated [9][10][11]

Core Viewpoint - The private equity sector, particularly firms like Blackstone and Apollo, is experiencing a reduction in price targets but remains favored for long-term investment despite recent market challenges [1][4][6]. Group 1: Company Performance - Evercore has lowered price targets for Blackstone from 197 to 180 and for Apollo from 160 to 145, while maintaining an outperform rating for both [1]. - Blackstone is set to report earnings soon, which may influence market sentiment [1]. - Apollo's stock has shown a rebound of approximately 3.5% recently, while other firms like Aries and Blue Owl have also seen gains [11]. Group 2: Market Trends - The alternative investment space, including private equity and private credit, is gaining traction as more advisors allocate investor funds into these products [2][4]. - The financial sector has underperformed in October, with healthcare up 5% and financials down 2%, indicating a shift towards quality investments [5][6]. - There is a growing interest in private infrastructure investments due to funding shortages in government and municipalities, suggesting a new avenue for private equity firms [7][8]. Group 3: Competitive Landscape - The private equity market is becoming increasingly competitive, with a notable auction receiving 36 bids, highlighting the intense interest in this sector [9]. - The IPO market for traditional manufacturing companies, typically owned by private equity firms, has not yet opened, posing a challenge for these firms [10].

How do you take into consideration the changing political landscape. Japan's just elected a new prime minister. What opportunities do you see there. What challenges do you see on the back of that.I think the key in Japan is really the continuity of the policy, really starting with Abe. We've had a number of prime ministers since then, but each of these successive prime ministers has continue and expanded the reform agenda here in Japan. And our hope and expectation is this new prime minister will be committ ...

Group 1: Japan's Political and Economic Landscape - The continuity of reform policies in Japan, initiated by former Prime Minister Abe, is expected to be upheld by the newly elected Prime Minister, which could lead to a bright future for Japan [2] - The private equity industry in Japan is maturing, with a focus on corporate carve-outs, secondary transactions, and public-to-private deals [3][4] - There is a growing need for infrastructure investment in Japan, particularly in digital infrastructure and energy, which will require significant private capital [4][5] Group 2: Investment Opportunities in India - India is recognized as a major investment destination, with a demographic advantage of 1.4 billion people and a burgeoning manufacturing sector [7] - The Asia infrastructure fund has seen substantial growth, increasing from $13 billion in 2018 to $60 billion currently, with India positioned as a key beneficiary [8] - Investments in India are being made in various sectors, including toll roads, transmission grids, renewable energy, and digital infrastructure, indicating a strong future for infrastructure capital [9] Group 3: Investment Environment in China - The investment landscape in China has become more selective due to geopolitical factors, but there remains a commitment to invest in sectors focused on domestic consumption and value-added services [11][12] - A clearer path to liquidity and an expanding M&A market are seen as critical catalysts for the revival of the private equity industry in China [13][14] - The focus on domestic consumption and local champions continues to drive investment interest, exemplified by a recent $2 billion control buyout in the soft drinks sector [12] Group 4: Global Investment Trends - There is a trend of diversification among global investors, with a shift towards Asian markets as the US dollar weakens and regional economies gain importance [15][16] - Investors are looking to balance their portfolios, with many having limited exposure to Asia, which is expected to change as they seek growth opportunities [18][19]

Global investors with heavy US exposure are steadily shifting more capital to Asia as the dollar loses steam and the region’s fundamentals shine, according to the co-chief executive officer of KKR https://t.co/c9mXB6fpmE ...

Core Viewpoint - Stepstone Group (NASDAQ:STEP) is positioned in a competitive market, with a new price target set by Morgan Stanley indicating potential growth in stock value [1][4]. Group 1: Stock Performance - STEP's current stock price is $63.15, reflecting a 3.64% increase from its previous value [2][4]. - The stock has shown significant volatility over the past year, with a high of $70.38 and a low of $40.07 [2][4]. - Today's trading range for STEP has been between $60.77 and $63.58 [2]. Group 2: Market Metrics - The market capitalization of STEP is approximately $7.82 billion, indicating its size and market presence [3]. - The trading volume for STEP is 231,874 shares, which highlights the stock's liquidity and investor interest [3]. Group 3: Analyst Insights - Michael Cyprys from Morgan Stanley has set a new price target of $66 for STEP, suggesting a potential increase of 5.35% from its current price [1][4].

Core Insights - KKR & Co. Inc. is a global investment firm managing various alternative asset classes, including private equity, energy, infrastructure, real estate, and credit, and is known for strategic investments and partnerships that drive growth [1] - Morgan Stanley has set a price target of $166 for KKR, indicating a potential price increase of about 35.4% from its current stock price of $122.60, reflecting confidence in KKR's strategic moves [2][5] - KKR's recent investment in Peak Re, in collaboration with Quadrantis Capital, enhances Peak Re's financial backing and aligns with KKR's strategy of expanding influence in diverse sectors [3][5] - KKR's stock has shown significant volatility over the past year, with a high of $170.40 and a low of $86.15, and currently has a market capitalization of approximately $109.15 billion [4][5] - The stock has traded between $120.06 and $123.04 today, with an active trading volume of 1,217,389 shares [4]