Tony James

Well, I try to look at private markets not as a series of individual business, but kind of a whole.

And I still think private markets over time can significantly outperform public markets.

Before we leave public markets, so many people have the vast bulk of their assets into stocks and bonds they could trade tomorrow.

Yep.

not only don't they need that liquidity, it has a real opportunity cost.

But they also entices them to often do the wrong thing at the wrong time.

So a hidden cost.

So I'm a big believer that over time, you can outperform in private markets.

But markets evolve.

I mean, it was clear to us that private credit

Capital, it was good for a while.

You know, yields were 12%.

Capital flooded into that.

And yields kept coming down into the sort of mid to high single digits.

for the same risk, but there was so much capital, there was more competition for deals.

So you also lost covenants and things like that.

And the kind of capital that was started to be raised with retail money, where it comes in one month and it's gotta be invested right away, or you have the negative drag, means that you kind of have to buy the market what's out there.

You can't, one of the great things about drawdown funds is there's nothing good to do.

I don't have to do anything, right?

You kind of lost that with this structure.