The Milken Institute Global Conference in Beverly Hills convened top global investors and executives on Monday to discuss geopolitical tensions, shifting capital flows, private credit risks, and the economic impact of artificial intelligence.
Blackstone President Jonathan Gray expressed confidence in the resilience of the US and global economies, citing their ability to power through crises. Apollo Global Management President Jim Zelter shifted focus from narrow private credit concerns to the vast ocean of private capital, suggesting a massive IPO pipeline is emerging.
Mubadala Deputy Group CEO Waleed Al Mokarrab Al Muhairi called private credit an inevitable and growing asset class, provided investors are selective. State Street CEO Ron O’Hanley predicted a major realignment of capital flows triggered by geopolitical events, noting the Gulf states have deployed $3.2 trillion.
Carlyle CEO Harvey Schwartz described AI as a productivity win, dismissing fears of mass unemployment. He characterized current concerns as important but not systemic, adding that private credit distributes risk, unlike banks that concentrate it.
CalPERS CEO Marcie Frost voiced concerns about AI disrupting entry-level jobs and the lack of retraining programs for the gig economy. She also warned against giving retail investors similar access to private equity as they have to private credit.
Morgan Stanley Co-President Daniel Simkowitz called the noise around private credit overdone, predicting an M&A wave that will create alpha opportunities for financiers.