GPZ: Why Private Credit Under Pressure Has Nothing To Do With 2008 Crisis

Multiplo Invest2.93K FollowersFollow5ShareSaveCommentsSummaryI recommend buying the VanEck Alternative Asset Manager ETF, which offers targeted exposure to leading private credit and alternative asset managers.GPZ currently trades at 14x forward earnings versus a historical average of 19x, implying a 35% upside if multiples revert.Liquidity mismatches, not widespread defaults, are driving recent stress; effective losses remain contained, and credit recoveries are near parity.Key triggers for rerating include lower-than-expected redemptions and further conservative actions by major banks such as JPMorgan.z1b/iStock via Getty Images Investment Thesis I recommend buying shares of Alternative Asset Managers. A new sectoral discussion arises after the drop in shares of SaaS companies, and now investors are wondering what is happening with the private credit market. MyThis article was written byMultiplo Invest2.93K FollowersFollowMore than 7 years of experience in equity analysis in LatAm. We provide our clients with in-depth research and insights to help them make informed investment decisions.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.