Ken Griffin

a private equity firm, you can definitively consummate this transaction because we're good for it.

The challenge with private credit is you lose the mark-to-market feedback loop that you have in public market securities.

So I worry about two factors that come from that.

Number one is

Are the people who are underwriting those credits receiving really good feedback about the quality of their investment decision-making process?

Because that's how they learn and grow.

You know, very few companies actually ever default.

So that mark-to-market journey is a really important indicator to the quality of your investment decision-making as an investor.

And they're losing that.

That's gone.

And with so much money being deployed in the private credit markets, that worries me about how thoughtfully we allocate capital as a society.

That's number one.

Number two, for retail institutional investors, it's very hard to judge a private credit money manager.

Because the assets aren't marked daily, weekly, or monthly in a meaningful, stringent way, it's really hard to differentiate the quality of performance between different firms.

And being an investor in private equity myself, I will tell you, it's remarkable.

I've seen term sheets for a given deal.

The fact that every single private credit firm delivers almost exactly the same term sheet is really quite profound.

I mean, what real distinction in underwriting is happening when you've got seven people all bidding on a deal and they're all within 25 basis points of one another?

I mean, that to me is shocking.

I wish it was a billion dollars.