Blackstone has attributed its greatest fourth-quarter positive aspects to the personal credit score market, citing a 0.3 per cent default charge.

Throughout an interview with Bloomberg in Tokyo final Thursday, Blackstone chief government officer Steve Schwarzman stated he was unaware of any financial institution that would declare a decrease default charge.

“I’ve fairly good confidence in our capacity to do conservative credit score extension,” he stated, and pledged that the asset supervisor’s personal direct-lending enterprise would come out of the present financial cycle in a “very robust place”.

Learn extra: Blackstone sees development in personal credit score funds in fourth quarter

The $1.7trn personal credit score market boomed after the monetary disaster, which led to higher restrictions on financial institution lending. Nonetheless, its speedy growth has introduced it beneath extra scrutiny with some warning of a possible bubble.

UBS Group AG chairman Colm Kelleher was amongst people who have warned of a bubble, whereas others have raised considerations over flawed valuations.

Schwarzman nonetheless appears to have full confidence within the asset class. He went on to inform Bloomberg that the funding agency is eyeing growth in Japan, with plans to amass companies within the Japanese healthcare and actual property areas this yr.

Learn extra: Non-public credit score corporations circle Barings’ mortgage e book

The corporate has additionally exported its funding merchandise to retail traders in Japan, partnering with native securities corporations in order that people can put money into the corporate’s personal credit score, personal fairness and actual property companies.

“The world has concluded that one thing has modified in Japan in a optimistic means,” Schwarzman informed Bloomberg. “And I agree with that.”

Blackstone’s newest monetary outcomes confirmed 3.9 per cent development within the worth of its personal credit score funds over the past three months of 2013, bringing the full-year efficiency to 16.4 per cent.

In distinction, its actual property division misplaced worth. Opportunistic actual property misplaced 3.8 per cent within the fourth quarter, bringing the full-year decline to six.3 per cent.

Learn extra: Non-public credit score corporations faucet fossil gasoline market