Alternative Asset Manager Report: Selective Opportunity as Private Credit Fears Reset Valuations
How is private credit shaping the outlook for alternative managers?
Alternative-asset managers have experienced a challenging first half of 2026 as rising rate uncertainty, shifting fiscal and tariff policy, and renewed geopolitical tension have driven equity and credit market volatility across the sector. Most firms in Morningstar’s coverage are trading down more than 25% since the start of the year amid concerns tied to high-profile private credit bankruptcies, technology-sector loan exposure, and a persistent mismatch between illiquid fund assets and rising investor redemption requests.
Despite these headwinds, our latest report suggests risks are concentrated instead of systemic. While firms differ in their exposure to higher-risk private credit categories, a reviving IPO and M&A market is beginning to unlock exit activity, fee-related earnings margins continue to benefit from the industry's shift toward perpetual capital, and the largest seven managers keep expanding their share of a fee-earning asset pool.
Download the report to explore our latest outlook for the group and make more informed decisions.
