PJT CEO Says Retail Will Stop Fueling Private Credit Growth

PJT Partners CEO Paul Taubman discusses M&A activity, private equity, and private credit headwinds at the Milken Institute Global Conference. He expects M&A to remain healthy but not accelerate due to low conviction. He argues retail flows into private credit will slow, calling it a PR challenge, and notes a shift toward syndicated markets. Taubman also warns that tail risks are rising and not being priced by markets. - M&A activity up ~10% YoY but not accelerating; conviction remains low. - Private equity exits delayed due to 2021 peak valuations and AI disruption. - Private credit faces a public relations challenge; retail flows expected to slow. - Underwriting standards tightening in private credit; pendulum shifting toward syndicated markets. - Tail risks from geopolitics and technology are rising but not priced in. - PJT is focusing on cultural adoption of AI before technology investments. - Taubman is advising the NBA on expansion process.