The recent failures of auto lender Tricolor and auto-parts manufacturer First Brands, which JPMorgan CEO Jamie Dimon dubbed "cockroaches," had the biggest names on Wall Street pointing fingers last week. Blackstone has been paying attention too, but on its third-quarter earnings call on Thursday, the company had a clear message: any attempts to tie these bankruptcies to private credit are fake news.
Barclays has revealed a £110 million loss tied to the collapse of Tricolor, a US subprime auto lender accused of fraud - an event now seen as a major warning sign for the $3 trillion private credit market. The bank confirmed the impairment in its third-quarter results, which otherwise met expectations, showing pre-tax profits of £2.1 billion - down 7% year-on-year but broadly in line with analyst forecasts.
For perspective: Global assets under management (AUM) in the wealth market reached $159 trillion in 2024, after growing by 20% over the prior five years, according to the Natixis Wealth Industry Survey. As for private assets specifically, PitchBook has projected that AUM held by general partners (GPs) will increase from $18.7 trillion in 2024 to $24.1 trillion by the end of 2029.
