The real state of private credit — from $200B+ pension funds and the GPs managing their capital.

Ashley Baum (Texas Teachers) throws cold water on the industry’s hottest asset class: “Private credit is not an asset class. We were loaning beads to each other before there was currency.” Meanwhile, Timothy Lower (Willow Tree) separates headlines from reality, explaining why the JP Morgan “cockroaches” story is about broadly syndicated deals, not traditional direct lending.

Daniel Quigley (Michigan Retirement) shares how allocators are pulling in risk and positioning for opportunity. Todd Hirsch (Point72) explains how they’re building private credit differently — shorter duration, amortizing, senior secured assets that play to their strengths.

Plus: Why there are more PE firms than McDonald’s, what Ashley’s team found when they asked 20 managers to define ABF (72 different answers), and the “revenue prevention officer” problem that’s killing deals.

Key Topics:

  • “Private credit is not an asset class” — Texas Teachers’ contrarian view
  • Separating headlines from reality: JP Morgan cockroaches ≠ direct lending
  • More PE firms than McDonald’s — why core middle market recoveries work
  • 90% of flows going to top 10 managers — the consolidation problem
  • 30-40% portfolio overlap at mega managers — diseconomies of scale
  • 450 billion AUM changed hands in 5 years (1/3 of market)
  • Point72’s ABF approach: shorter, amortizing, senior secured
  • “72 different definitions of ABF” — the naming chaos
  • “The hot part of the market is retail. We don’t want it.”
  • Co-investment as concentration strategy, not fee reduction
  • “Revenue prevention officer” — legal friction killing deals
  • “The LP pays for both sides” — broken incentives in legal
  • “Last two weeks more interesting than last couple years” — market opportunity
  • Strong hands vs weak hands: institutions positioning for distress

Timestamps:
0:00 — Intro
1:01 — Tim Lower: Separating headlines from reality
2:58 — “More PE firms than McDonald’s in America”
7:41 — Ashley Baum: “Private credit is not an asset class”
9:07 — “We’re not super excited about much”
12:20 — Todd Hirsch: Point72’s approach to ABF
18:19 — “72 different definitions of ABF”
19:19 — “The hot part? Retail. We don’t want it.”
22:07 — Co-invest: Concentration, not fee reduction
25:53 — “Revenue prevention officer” — Legal friction

SPEAKERS:

  • Ashley Baum, CFA, CPA — MD & Head, Special Opportunities, Teacher Retirement System of Texas (TRS)
  • Todd Hirsch — Head, Private Capital, Point72
  • Timothy Lower — CEO, Willow Tree Credit Partners
  • Daniel Quigley — Senior Investment Manager, State of Michigan Retirement Systems
  • Jillien Flores — Chief Advocacy Officer, MFA (Moderator)

Recorded live at Global Alts Miami 2026