Blackstone Inc. is an alternative asset management firm specializing in real estate, private equity, hedge fund solutions, credit, secondary funds of funds, public debt and equity and multi-asset class strategies. The firm typically invests in early-stage companies. It also provide capital markets services. The real estate segment specializes in opportunistic, core+ investments as well as debt investment opportunities collateralized by commercial real estate, and stabilized income-oriented commercial real estate across North America, Europe and Asia. The firm's corporate private equity business pursues transactions throughout the world across a variety of transaction types, including large buyouts,special situations, distressed mortgage loans, mid-cap buyouts, buy and build platforms, which involves multiple acquisitions behind a single management team and platform, and growth equity/development projects involving significant majority stakes in portfolio companies and minority investments in operating companies, shipping, real estate, corporate or consumer loans, and alternative energy greenfield development projects in energy and power, property, dislocated markets, shipping opportunities, financial institution breakups, re-insurance, and improving freight mobility, financial services, healthcare, life sciences, infrastructure, enterprise tech and consumer, as well as consumer technologies. The firm considers investment in Asia and Latin America. It seeks to invest between $0.25 million and $900 million per transaction. It invests in companies with enterprise value between $500 million and $5000 million. It has a three year investment period. Its hedge fund business manages a broad range of commingled and customized fund solutions and its credit business focuses on loans, and securities of non-investment grade companies spread across the capital structure including senior debt, subordinated debt, preferred stock and common equity. Blackstone Inc. was founded in 1985 and is headquartered in New York, New York with additional offices across Asia, Europe, North America and Central America.

Анализ фундаментальных метрик Blackstone Inc. показывает, что компания находится в состоянии переоцененности по ключевым мультипликаторам, таким как P/E, P/S и P/B, которые значительно превышают медианные значения по отрасли. Это указывает на потенциальные риски для инвесторов. Однако, показатели рентабельности, такие как ROE и ROA, остаются высокими и демонстрируют положительную динамику, что свидетельствует о высокой эффективности управления. Долговая нагрузка компании также вызывает опасения, так как коэффициент долга к капиталу выше медианы. В то же время, стабильный рост чистой прибыли и выручки, наряду с высокими маржами, говорит о сильных операционных показателях. Дивидендная доходность растет, что может быть привлекательным для инвесторов, ищущих доход. В целом, несмотря на позитивные аспекты, такие как сильные финансовые результаты, высокая оценка по мультипликаторам и долговой нагрузке создают определенные риски, что требует пересмотра целевой цены в сторону снижения.

Blackstone Inc.

Shares of Deutsche Bank AG DB fell nearly 7% yesterday as the company disclosed that its private credit portfolio increased to €25.9 billion (nearly $30 billion) in 2025, underscoring growing investor concern about risks accumulating in the rapidly expanding sector. According to the bank’s 2025 annual report, Deutsche Bank’s private credit portfolio exposure reflects a 6% year-on-year expansion, positioning the German lender among the banks with some of the largest links to the booming private credit industry.
Deutsche Bank said its underwriting remains conservative and emphasized that it does not currently face “significant direct risks.” Still, the bank acknowledged that it could experience indirect credit risks through interconnected portfolios and counterparties in the wider private credit ecosystem.
Another area of growing exposure is the technology sector, particularly loans linked to software companies. The bank’s loan exposure to the technology sector, including software, reached €15.8 billion ($18.2 billion) at amortized cost in 2025, up from €11.7 billion ($13.5 billion) in the previous year.
Private credit has grown into a nearly $2 trillionglobal market attracting institutional investors seeking higher yields. However, concerns about private credit intensified due to concerns about weak underwriting standards, lack of transparency, and rising borrower leverage. Some private credit funds have faced redemption pressures, while certain lenders have reported loan markdowns and credit quality concerns.
This week, JPMorgan JPM decided to mark down some private-credit loans. JPM has reduced the value of certain loans held as collateral by private-credit groups, particularly software-related exposures, and is accordingly limiting how much it will lend against those assets. The move underscores how banks are becoming more cautious about the quality and liquidity of private loans as pressure rises on sectors seen as vulnerable to artificial-intelligence (AI) disruption and weaker economic conditions.
Strains are also emerging across the broader alternative-asset industry, including companies like BlackRock BLK and Blackstone BX. Recently, BlackRock limited withdrawals from a flagship private-credit fund after redemptions surged. On the other hand, Blackstone announced a rise in its redemption cap from 5% to 7% after facing a jump in investor requests. This highlights how quickly confidence can be tested when investors want cash back at the same time.
To conclude, the disclosure of Deutsche Bank’s sizable private-credit exposure shows that sentiment around the fast-growing asset class can shift at any time. Despite flagging the risks related to private credit, Deutsche Bank said it plans to expand its business within the sector, aiming to broaden distribution through selective regional growth and by developing new investment products and digital solutions alongside its private bank.
DB Price Performance & Zacks Rank
Over the past year, shares of Deutsche Bank have gained 21.5% on the NYSE compared with the industry’s growth of 38.1%.
Image Source: Zacks Investment Research
Currently, DB carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Just Released: Zacks Top 10 Stocks for 2026
Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.
From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.
See New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

DB Stock Falls 7% After Revealing Nearly $30B Private Credit Exposure

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in UiPath Inc (Symbol: PATH), where a total volume of 231,919 contracts has been traded thus far today, a contract volume which is representative of approximately 23.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 56.2% of PATH's average daily trading volume over the past month, of 41.2 million shares. Particularly high volume was seen for the $12.50 strike call option expiring March 20, 2026, with 16,457 contracts trading so far today, representing approximately 1.6 million underlying shares of PATH. Below is a chart showing PATH's trailing twelve month trading history, with the $12.50 strike highlighted in orange:
Blackstone Inc (Symbol: BX) saw options trading volume of 54,328 contracts, representing approximately 5.4 million underlying shares or approximately 55.8% of BX's average daily trading volume over the past month, of 9.7 million shares. Particularly high volume was seen for the $150 strike put option expiring March 20, 2026, with 8,203 contracts trading so far today, representing approximately 820,300 underlying shares of BX. Below is a chart showing BX's trailing twelve month trading history, with the $150 strike highlighted in orange:
And Kennametal Inc. (Symbol: KMT) options are showing a volume of 9,856 contracts thus far today. That number of contracts represents approximately 985,600 underlying shares, working out to a sizeable 55.7% of KMT's average daily trading volume over the past month, of 1.8 million shares. Particularly high volume was seen for the $40 strike call option expiring March 20, 2026, with 6,073 contracts trading so far today, representing approximately 607,300 underlying shares of KMT. Below is a chart showing KMT's trailing twelve month trading history, with the $40 strike highlighted in orange:
For the various different available expirations for PATH options, BX options, or KMT options, visit StockOptionsChannel.com.
Also see:
Top Ten Hedge Funds Holding COYA
Top Ten Hedge Funds Holding GJP
Funds Holding ICG
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: PATH, BX, KMT

JPMorgan’s JPM decision to mark down some private-credit loans is sharpening a market debate that had already been building: whether the fast-growing asset class is finally being forced into more realistic price discovery.
The latest development concerning private credit markets was first reported by the Financial Times. JPMorgan has reduced the value of certain loans held as collateral by private-credit groups, particularly software-related exposures, and is accordingly limiting how much it will lend against those assets. The move underscores how banks are becoming more cautious about the quality and liquidity of private loans as pressure mounts on sectors seen as vulnerable to artificial-intelligence (AI) disruption and weaker economic conditions.
For years, private credit has attracted investors with promises of stable valuations, steady income and insulation from the volatility of public markets. But recent events are reviving an old concern: valuations in private markets can look smoother largely because assets are not marked continuously. When a major bank like JPMorgan trims collateral values, it suggests that at least some loan books may not be worth what managers had implied only months earlier.
The pressure is already spreading across the alternative-asset spectrum. BlackRock BLK recently limited withdrawals from a flagship private-credit fund after redemptions surged. Blackstone BX announced a rise in its redemption cap from 5% to 7% after facing a jump in investor requests. This highlights how quickly confidence can be tested when investors want cash back at the same time.
Publicly traded firms tied to the theme, including Blue Owl Capital OWL and Apollo Global Management APO, have also been caught in the downdraft. Last month, Blue Owl Capital moved to restrict investor withdrawals from one of its retail-focused funds amid mounting scrutiny of software-heavy loan exposure, while Apollo Global is moving to value some private-credit holdings daily, a sign that transparency has become a competitive issue as skepticism grows. Blackstone and BlackRock, meanwhile, remain in the spotlight because their scale makes them key barometers of investor confidence in the sector.
JPMorgan’s markdowns do not prove private credit is headed for a full-blown crisis. But they do signal that the era of easy assumptions around valuation, liquidity and underwriting may be ending. Hence, the bank’s move is not just a one-off adjustment, but a warning for the whole industry.
Zacks Names #1 Semiconductor Stock
This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

JPMorgan's Markdowns Signal a Reality Check for Private Credit

(RTTNews) - Blackstone Inc. (BX) and Advanced Cooling Technologies, Inc., or ACT, announced on Wednesday that funds managed by Blackstone Energy Transition Partners have inked a deal to buy a majority stake in ACT.
The transaction is expected to be closed in the second quarter.
David Foley, Global Head of Blackstone Energy Transition Partners, said: "Our investment strategy focuses on identifying businesses we believe are well positioned to benefit from long-term power demand growth and the need to manage power and energy more efficiently."
Founded in 2003, ACT is a maker of thermal management and energy efficiency solutions for advanced computing, high power density, and mission-critical applications.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Blackstone To Acquire Majority Stake In Advanced Cooling Technologies

(RTTNews) - Blackstone, Inc. (BX) and Advanced Cooling Technologies, Inc. or ACT, announced Wednesday that funds managed by Blackstone Energy Transition Partners have entered into a definitive agreement to acquire a majority stake in ACT. The terms of the deal were not disclosed.
Founded in 2003 and headquartered in Pennsylvania, ACT designs and manufactures highly-engineered thermal management and energy efficiency solutions for advanced computing, high power density, and mission-critical applications.
Blackstone's investment is intended to help maintain ACT level of service, while adding capacity and capabilities to enhance the value provided to ACT's broad customer base.
ACT's executive team will remain in place and continue as significant shareholders in the business.
The transaction is expected to close in second quarter, subject to customary conditions.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Blackstone Energy Transition To Acquire Majority Stake In Advanced Cooling Technologies

As rising concerns about the private credit market, fund outflows and macroeconomic pressures affect alternative asset managers, shares of Blackstone Inc. BX have lost 28.2% in the past three months compared with the industry’s 21.4% decline.
Investor sentiment weakened after the firm’s flagship $82-billion private credit fund (BCRED) saw unusually high redemption requests, with investors withdrawing billions of dollars and redemption levels exceeding typical quarterly limits, raising worries about liquidity and the stability of private credit funds. Earlier this month, Blackstone announced a rise in its redemption cap from 5% to 7%.
Primarily, the withdrawals were triggered by the recent high-profile corporate bankruptcies and credit stress in sectors such as auto suppliers and subprime lenders, which raised concerns about potential loan defaults within private credit portfolios. Also, investors became worried about exposure to software and technology borrowers, which face uncertainty due to artificial intelligence (AI)-led disruption and slowing growth.
Higher bond yields and interest-rate uncertainty have also reduced the attractiveness of leveraged buyouts and real estate investments, two key areas for Blackstone, contributing to the sharp decline in the stock.
The private credit market headwinds have been weighing on other alternative asset managers, such as BlackRock BLK, Apollo Global APO and Blue Owl Capital Inc. OWL as well. Shares of these companies have also faced bearish investor sentiments, with all trading in the red. In the past three months, shares of BlackRock, Apollo Global and Blue Owl Capital have lost 13.1%, 28.1% and 39.1%, respectively.
3-Month Price Performance
Image Source: Zacks Investment Research
Last month, Blue Owl Capital moved to restrict investor withdrawals from one of its retail-focused funds. Apollo Global’s CEO, Marc Rowan, warned that a shakeout is coming for private credit firms as the industry faces concerns about rising defaults on loans to software companies. BlackRock has restricted withdrawals from its private credit fund, HPS Corporate Lending Fund, following a jump in redemption requests.
Against the tough operating backdrop for alternative asset managers, investors must consider whether it is worth holding on to the stock or better to exit. But, before making any investment decision, it is important to examine BX’s fundamentals and growth prospects to assess whether the stock still offers meaningful upside potential.
Blackstone’s Fundamental Strength
Robust Assets Under Management (AUM) Balance: Blackstone has a solid AUM balance. Its total AUM and fee-earning AUM have seen compound annual growth rates (CAGR) of 15.6% and 14.4%, respectively, over the last five years (2020-2025). At the end of 2025, the total AUM balance reached a record $1.27 trillion.
Blackstone’s AUM growth has been driven by continued solid capital inflows, the company’s strategic investments in high-growth infrastructure and technology sectors, and a broad fundraising momentum. The company’s investments in secular growth areas like digital infrastructure, AI infrastructure, energy transition and life sciences are major tailwinds.
While Blackstone’s expansion into private wealth channels and insurance platforms has helped in diversifying its revenue sources, new products like perpetual vehicles allow tapping demand from different kinds of investors.
The company’s diversified product base, solid revenue mix and superior position in the alternative investments space are expected to continue supporting AUM growth.
Strong Fundraising Ability: Despite a challenging fundraising environment for asset managers, Blackstone has been raising money. Fundraising for the global private equity and real estate funds resulted in Blackstone’s ‘dry powder’ or the available capital of $198.3 billion as of Dec. 31, 2025.
In 2024 and 2025, the company deployed $133.9 billion and $138.2 billion of capital, respectively. With substantial investable capital, Blackstone is well-positioned to take advantage of market dislocations. Accelerating growth in India and Japan offers attractive opportunities, supporting a strategic deployment of capital.
In April 2025, Wellington, Vanguard and Blackstone announced the formation of an alliance to develop simplified multi-asset investment solutions combining public and private markets. Aiming to broaden investor access to institutional-quality portfolios, the collaboration leverages each firm’s strengths to address long-term diversification and return challenges in wealth and asset management.
Blackstone’s Valuation Analysis
On a valuation basis, shares of Blackstone appear to be trading at a premium relative to the industry.
The company’s forward 12-month price/earnings (P/E) ratio of 16.58 is above the industry average of 9.76.
P/E (F12M) Ratio
Image Source: Zacks Investment Research
How to Approach Blackstone Stock Now?
A premium valuation compared with the industry makes us apprehensive about the company’s prospects. Tighter credit markets of late, relatively high interest rates, slower deal activity in private equity and real estate, reduced realizations and concerns about exit opportunities are expected to hamper Blackstone’s near-term prospects.
Rather than immediate credit losses, the concerns in the private credit market will continue to weigh on Blackstone for some time now, mainly through investor sentiment, potential redemptions and slower fundraising. Caution among retail and wealth-channel investors toward semi-liquid credit vehicles is likely to lead to continued outflows or slower inflows, which may slightly pressure AUM and fee-related earnings in the near term.
If we look at Blackstone’s estimate revisions, it is clear that analysts are not optimistic regarding the company’s earnings growth prospects. While the company’s earnings estimates for 2026 and 2027 reflect year-over-year growth rates of 14% and 26.8%, respectively, estimates for both years have been revised lower over the past 30 days.
Earnings Estimate Revision
Image Source: Zacks Investment Research
Nevertheless, since Blackstone manages assets across private equity, real estate, credit, infrastructure and hedge fund solutions, the diversification enables it to generate multiple revenue streams, including management and performance fees. Being the largest alternative asset manager in the United States, its strong brand and deep relationships with institutional investors are expected to continue to drive fund inflows, supporting growth in AUM and fee-related earnings in the long run.
Thus, while valuation-aware and more conservative investors should stay away from the BX stock at present, those who already own the stock can hold onto it as the company is less likely to disappoint in the long run. Investors should closely monitor how private credit-related risks evolve and assess Blackstone’s strategic response before making fresh investment decisions.
Currently, Blackstone carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is it Time to Sell Blackstone Stock Amid Rising Private Credit Woes?

Shares of BlackRock BLK are down 10.7% this year, with the recent private credit woes majorly hurting investor sentiment. The company has restricted withdrawals from its private credit fund, HPS Corporate Lending Fund (“HLEND”), following a jump in redemption requests. This was first reported by the Financial Times.
HLEND, which manages approximately $26 billion and is one of BLK's largest private credit funds, received nearly $1.2 billion in redemption requests (9.3% of its net asset value) in the ongoing quarter. However, the fund will pay out $620 million, touching the 5% quarterly threshold.
BlackRock acquired HPS Investment Partners last year as part of its efforts to expand into private credit, which offers a way to diversification from the traditional public markets. Additionally, the company acquired ElmTree Funds, Preqin and Global Infrastructure Partners as part of a strategic expansion of its Aladdin technology business into the rapidly growing private markets data segment.
Nonetheless, recent concerns, including rising redemptions, tighter liquidity, valuation scrutiny and mounting default headwinds, are weighing on alternative asset managers such as BlackRock, Apollo Global APO, Blue Owl Capital Inc. OWL and Blackstone BX. Hence, shares of these companies have faced bearish investor sentiment, with all trading in the red.
YTD Price Performance
Image Source: Zacks Investment Research
HLEND’s redemption request news came amid growing apprehensions about systemic risks in the private credit market. Earlier this month, Blackstone announced a rise in its redemption cap from 5% to 7% after facing a surge of investor requests. Last month, Blue Owl Capital moved to restrict investor withdrawals from one of its retail-focused funds. Further, Apollo Global’s CEO, Marc Rowan, has warned that a shakeout is coming for private credit firms as the industry faces concerns about rising defaults on loans to software companies.
Against such a backdrop, it is important to evaluate how these factors may affect BlackRock and how market participants should approach the stock in the current environment. Let’s delve deeper and analyze BLK’s investment worthiness.
Product Diversification to Boost BlackRock’s AUM
BlackRock has been focusing on diversifying its product suite and revenue mix, which, along with acquisitions, has been improving assets under management (AUM) over the years. AUM recorded a five-year (2020-2025) CAGR of 10.1%, driven by an inorganic expansion strategy and upbeat market returns. As of Dec. 31, 2025, total AUM was a record $14.04 trillion.
In 2025, BlackRock witnessed record net inflows of $698 billion, after $641 billion of inflows in 2024. The momentum will likely continue as efforts to strengthen iShares (offering more than 1,700 ETFs globally) and ETF operations, along with the company’s increased focus on the active equity business, are expected to offer support.
BlackRock is expanding its iBonds ETF platform and launching a leveraged loan fund to diversify offerings and aiming to enhance its market position. Further, the company has expanded its business in India by partnering with Jio Financial and operates as an investment adviser in the country. Over the last few years, the company has had nearly 40% of total AUM for clients domiciled outside the United States.
Such product diversification and global expansion efforts are likely to bolster the company’s revenue mix, reduce revenue concentration risk and allow it to serve a broader range of clients, aiding AUM growth. BlackRock’s GAAP revenues witnessed a CAGR of 8.4% over the last five years ended 2025.
BLK’s Encouraging Capital Distributions
As of Dec. 31, 2025, BlackRock had $11.5 billion in cash and cash equivalents while borrowings totaled $12.8 billion. This indicates a solid liquidity position.
The company hikes dividends annually. BlackRock announced a 10% hike in the quarterly dividend to $5.73 per share in January 2026. It increased its dividend five times in the last five years with an annualized dividend growth rate of 5.02%.
Also, the company has a 43% dividend payout ratio, while its peers, Blackstone, Apollo Global and Blue Owl Capital have 93%, 27% and 107% payout ratios, respectively.
BlackRock has a share repurchase plan in place. In January, the company’s board of directors authorized the buyback of an additional 7 million shares under its existing share repurchase program. BlackRock expects to repurchase at least $1.8 billion worth of shares this year, after buying back shares worth $1.6 billion in 2025.
Analyst Sentiments for BLK
Over the past month, the Zacks Consensus Estimate for 2026 and 2027 earnings has remained unchanged at $53.64 and $60.91, respectively, implying growth of 11.5% and 15.4%.
Estimate Revision Trend
Image Source: Zacks Investment Research
How to Approach BlackRock Stock Now
In terms of valuation, BLK’s price-to-earnings (P/E) forward 12-months of 17.32X is above the industry's 12.66X. Thus, the stock is expensive.
P/E F12M
Image Source: Zacks Investment Research
BlackRock is trading at a premium compared with Blackstone, Apollo Global and Blue Owl Capital.
Further, a steady rise in expenses is a headwind. The company recorded a five-year CAGR of 10.3% (ended 2025), mainly due to higher general and administrative costs and acquisitions completed during the period. Overall costs are expected to remain elevated due to the company’s business expansion plans. Given rising geopolitical risks and foreign currency fluctuations, BlackRock may witness subdued overseas revenues.
Amid growing concerns around private credit, BlackRock appears relatively insulated. As of Dec. 31, 2025, Alternatives (including private markets) accounted for just 3% of its total AUM, limiting direct exposure. Backed by record AUM and ongoing product diversification, the company remains well-positioned. Still, investors should closely monitor how private credit-related risks evolve and assess BlackRock’s strategic response before making fresh investment decisions. Existing shareholders may hold the stock for now.
Currently, BLK carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

BlackRock's Private Credit Woes: Time to Sell the Stock?

Investing in the private-credit market can offer high yields, but the downside risks are real and increasingly visible. The main concerns fall into four categories: valuation opacity, liquidity risk, credit deterioration, and structural vulnerabilities.
Bringing the issue into sharper focus, prominent financial leaders, including JPMorgan JPM CEO Jamie Dimon, have warned about the growing risks that the private-credit market poses to the broader economy.
This makes it a worthy topic of whether there is opportunity in private credit stocks, or if there is indeed too much risk ahead.
What are Private Credit Risks?
Private credit risk refers to the vulnerabilities and potential losses associated with lending in the private credit market, where non-bank lenders provide loans that are not traded on public markets. The core idea is that this market offers higher yields but comes with less transparency, weaker regulation, and higher borrower risk than traditional bank or public debt markets.
Stocks with high exposure to private credit risks are largely concentrated among major alternative asset managers and Business Development Companies (BDCs), particularly those with significant software and technology sector lending.
Software Sector Risk: Many BDCs have about 25% of their portfolios in software, which is vulnerable to AI-induced disruption and refinancing difficulties.
Rising Defaults: Analysts predict potential default rates for U.S. private credit firms could rise significantly, up to 13%, if AI disrupts the software sector.
Bank Contagion: Some regional bank stocks are also facing pressure due to exposure to risky private loans.
Blue Owl Capital is a Stock to Avoid at the Moment
Landing a Zacks Rank #4 (Sell), Blue Owl Capital OWL is a notable private credit stock to avoid at the moment. Although Blue Owl’s attractive P/E valuation and stock price of $10 a share may be luring to investors, EPS revisions for FY26 and FY27 have continued to trend lower.
Despite trading at just 10X forward earnings, the pullback in Blue Owl stock towards 52-week lows has also been attributed to restrictions on investor withdrawals from one of its private credit funds, Blue Owl Capital Corp II (OBDC II), a retail-oriented private-credit vehicle. Investors can no longer redeem shares on a quarterly basis, reversing earlier plans to reopen withdrawals.
Restricting these quarterly redemption opportunities, referred to as withdrawal windows, that its semi-liquid private-credit funds used to offer, typically allowed investors to request redemptions once per quarter, subject to caps. Recent developments show that these opportunities have been restricted, restructured, or eliminated across key Blue Owl vehicles, which has become a major stress point in the private-credit market in regard to liquidity concerns.
Top Private Credit Stocks to Consider
Although there are currently no buy-rated stocks among the notable private credit providing asset managers, here are three that are standing out with a Zacks Rank #3 (Hold).
Ordered by market cap, these financial firms have strong fundamentals but have experienced a mixed or not overly compelling trend of EPS revisions amid recent private credit risk concerns.
While it may still be better buying opportunities ahead, the long-term risk-to-reward has become more attractive with each of these stocks trading more 30% from their 52-week highs.
1. The Blackstone Group – BX
Stock Price: $114
FY26 EPS Growth Projections: 14%, ($6.37 per share)
Forward P/E Valuation: 17X
Dividend Yield: 5.37%
Headquartered in New York, Blackstone Inc. BX is a leading asset manager of alternative investments and a global provider of financial advisory services. Blackstone has a large software/tech sleeve in private credit & BDCs.
2. Apollo Global Management – APO
Stock Price: $109
FY26 EPS Growth Projections: 10%, ($9.25 per share)
Forward P/E Valuation: 11X
Dividend Yield: 1.91%
Also based in New York, Apollo Global Management LLC APO is a high-growth, global alternative asset manager and retirement services provider. Apollo is a major direct lender to software and SaaS (Software as a Service) companies.
3. Ares Management – ARES
Stock Price: $116
FY26 EPS Growth Projections: 37%, ($6.53 per share)
Forward P/E Valuation: 17X
Dividend Yield: 3.98%
Headquartered in Los Angeles, Ares Management Corporation ARES is a global alternative investment manager that offers investment solutions across credit, private equity, and real assets to institutional and individual investors worldwide.
Notably, Ares Management has been among the most vocal defenders of software exposure, saying its portfolios are resilient despite pressure in the space.
A Publicly Traded BDC with Strong Demand
It’s noteworthy that BDCs are one of the most direct ways to invest in private credit, as they often benefit from the same tailwinds, floating-rate loans, strong origination pipelines, and investor demand for high yields.
Ares Capital ARCC is one such BDC seeing increased demand as a specialty finance company that primarily invests in U.S. middle-market companies (firms having annual earnings in the range of $10-$250 million).
Being less susceptible to volatility, Ares Capital stock has a tight 52-week range of $18-$23 a share. Bolstering its low Beta, which is currently at the optimum level of less than 1.0, is Ares Capital's lofty 10.13% annual dividend yield. ARCC also trades at an attractive 9X forward earnings multiple, although FY26 EPS is expected to dip 3% to $1.94. For now, Ares Capital stock lands a Zacks Rank #3 (Hold).
Bottom Line & What to Watch Next
Investing in private credit stocks offers a mix of compelling advantages and meaningful risks. The private credit market has delivered higher long-term returns than many public-market strategies, driven by active management, operational improvements, and strategic exits.
In today’s environment — where rates are high but stabilizing, deal activity remains selective, and demand for private credit is strong — these stocks still offer meaningful long-term growth potential. However, they also face near-term volatility driven by macro conditions, especially given their sizable exposure to software investments at a time when sentiment is weakening amid concerns about AI-driven disruption.
That said, here are four key points that investors will want to watch going forward.
1. Rising defaults among private-credit-backed companies
2. Valuation pressure if rates fall and floating-rate income declines
3. Liquidity concerns for semi-liquid funds
4. Regulatory scrutiny of non-bank lenders
Free Report: Profiting from the 2nd Wave of AI Explosion
The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.
Investors who bought shares like Nvidia at the right time have had a shot at huge gains.
But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.
Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.
Access AI Boom 2.0 now, absolutely free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is There Opportunity in Private Credit Stocks or Still Too Much Risk?

(RTTNews) - Teva Pharmaceuticals, a U.S. affiliate of Teva Pharmaceutical Industries (TEVA) and funds managed by Blackstone Life Sciences announced a $400 million strategic funding agreement spread across four years to support the continued clinical development of duvakitug. Blackstone Life Sciences will provide Teva $400 million to fund ongoing and future development costs for duvakitug, spread over four years. Subject to the approval of duvakitug by the FDA, Teva will pay BXLS a milestone payment. Blackstone Life Sciences will also be eligible to receive commercial milestones and low single-digit royalties on duvakitug worldwide sales.
Duvakitug is a human monoclonal antibody targeting TL1A. Duvakitug is currently in phase 3 clinical studies for the treatment of ulcerative colitis and Crohns disease. Under a separate and independent agreement, Teva is co-developing and, subject to regulatory approval, will be co-commercializing this asset with Sanofi.
At last close, shares of Teva were trading at $32.28, down 4.41%.
For More Such Health News, visit rttnews.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Teva: Blackstone Life Sciences To Provide $400 Mln To Support Development Of Duvakitug

Blue Owl Capital (NYSE:OWL), a private credit and permanent capital provider, closed Tuesday at $10.27, down 3.89%. Shares slid after fresh reports on liquidity strains, withdrawal limits, and sector-wide redemption pressure in private credit, and investors are watching how asset sales and fund “gating” risks shape future capital-raising.
The company’s trading volume reached 54 million shares, which is about 141% above compared with its three-month average of 22.4 million shares. Blue Owl Capital went public in 2020 and has grown 1% since its IPO.
How the markets moved today
The broader U.S. markets weakened Tuesday, with the S&P 500 (SNPINDEX:^GSPC) falling 0.94% to 6,816.63 and the Nasdaq Composite (NASDAQINDEX:^IXIC) losing 1.02% to finish at 22,517. Within alternative asset management, industry peers Blackstone (NYSE:BX) closed at $110.92 (-3.83%) and KKR (NYSE:KKR) finished at $90.55 (-0.07%), reflecting caution around credit and private market exposures.
What this means for investors
Blue Owl shares fell to a 52-week low of $10.07 as concerns about private credit redemptions spread across the sector. Reports that Blackstone’s BCRED vehicle recorded $1.7 billion in net outflows and a 7.9% gross redemption rate heightened scrutiny of non-bank lenders, increasing pressure on names seen as sensitive to retail liquidity shifts.
Blue Owl agreed to sell about $1.4 billion in direct lending investments at 99.7% of par, showing that loan values are still close to face value. The company also filed a shelf registration for an employee stock ownership plan covering up to 50 million Class A shares, which investors are watching for possible dilution. Investors will watch to see if asset sales continue to happen near par and if strong fundraising can balance out redemption pressure, especially as retail flows remain unpredictable.
Should you buy stock in Blue Owl Capital right now?
Before you buy stock in Blue Owl Capital, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Blue Owl Capital wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $523,599!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,640!*
Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of March 3, 2026.
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Blackstone and KKR. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	42.06 13.58
Price/Sales	6.12 2.08
P/B	4.26 1.18
P/FCF	31.38 10.49

Indicator	TTM Median
ROE	15.39 10.31
ROA	6.00 1.17
ROI	8.70 6.85
Net Worth	114.89 1.01
Quick Ratio	0.00 1.37
Current Ratio	0.75 0.97

Indicator	TTM Median
Net Profit Margin	20.56 16.80
Operating Margin	46.26 22.80
Gross Margin	100.00 69.57
Return on tangible equity	15.82 12.33

Indicator	TTM Median
EPS	1.75 0.68
EPS Forecast	1.52 0.67
Revenue	3.09B 84.00M
Gross Profit	4.36B —
EBITDA	1.47B —

Blackstone Inc.

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

Debts

Efficiency

Other ratios

Revenue