Goldman Sachs said fundraising across alternative asset classes, particularly credit and real estate, remains robust in a low-rate, low-risk world, and sees more value in the stocks of asset managers that have a diverse mix.
The brokerage said although the outlook for traditional private equity fundraising remains mixed; real estate, distressed debt and mezzanine fundraising has grown steadily since the financial crisis, with a total funding pipeline of $225 billion across all three categories.
Goldman raised its ratings on Blackstone Group LP
It sees opportunities in Blackstone due to its dominant real estate and fund-of-fund businesses and its relatively less reliance on IPO exit for generating performance fees.
The brokerage said Apollo's attractive 6 percent yield is diversified and relatively reliable with a high component of carry from interest and dividend income.
However, Goldman downgraded BlackRock Inc
(Reporting by Satyanarayan Iyer in Bangalore; Editing by Supriya Kurane)