Building evidence private credit redemptions past peak retail angst, TD Cowen says

** TD Cowen says there is building evidence that private credit is past peak retail redemptions angst.

** On Thursday, Blackstone president Jon Gray said investor requests from its flagship private credit had fallen at the beginning of Q3 after a period of higher demand to redeem.

** Blackstone's commentary is encouraging, TD Cowen analyst Bill Katz says, adding that easing Google-related "Direct Lending" searches should help temper run-off.

** Some asset managers saw redemption requests fall sequentially in Q2 tender offers, while others faced higher redemption requests.

** "As the industry migrates to enforcing the 5% quarterly tender max across most products, our working view is that such uniformity would ease the media scrutiny, and further ease the "run on the bank" mindset of retail investors," Katz says.

** "Further improvement in redemption/tender dynamics should ease base fee rate/management fee pressures and reduce investor angst on contagion risks (run off fears spilling into the durability of retail flows, sustainability of insurance and/ or institutional investor demand more broadly"