PJT CEO Says Retail Will Stop Fueling Private Credit Growth

Summary

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.