Deutsche Bank has downgraded Man Group PLC (LSE:EMG), the London-listed hedge fund manager, to hold from buy, judging that its shares are now up with events after a strong run. The bank raised its price target to 310p from 295p, against a last close of 296.60p.
Man Group's Kevin Marchetti told CNBC the prospect of higher interest rates offered a potential tailwind for private credit returns, particularly in middle-market direct lending. Marchetti told CNBC at the SuperReturn International private markets conference in Berlin that recent retail-focused redemption pressures are signs of private credit's "growing pains.
The AI shock is forcing investors to separate resilient, mission-critical software companies from more vulnerable business models. Private credit's heavy exposure to software faces a major test, as AI challenges assumptions around software growth, pricing power and borrower durability.
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