High interest rates are a game changer for almost all categories of asset managers: private equity, real estate, mutual funds, in spite of their protestations about how they are able to raise funds, sell holdings above book value etc.

Look at the fall in share price of BlackRock, T Rowe Price, Charles Schwab, as investors pull funds from higher earning equity funds and bank deposits into much lower margin money market funds and ETFS. These firms have much simpler and transparent business models than alt asset managers.

Alt asset managers are affected by the same trend. So it should be no surprise that far more opaque investment managers have been hit even harder.

The FT Big Read has a report on private equity titled 'High Rates start to pummel dealmakers'. A subscription is required to read it. Well worth reading it.