Brookfield’s Says Private Credit to Grow Alongside Private Equity

Brookfield Asset Management’s head of private equity, Anuj Ranjan, believes the rapid rise of private credit is not replacing private equity but growing in tandem with it. Speaking to Bloomberg Television in Riyadh during Saudi Arabia’s Future Investment Initiative (FII), Ranjan said both sectors will continue to evolve side by side as global capital markets shift.

“I wouldn’t say it edged out private equity,” Ranjan explained, referring to the surge in private credit activity. “The pullback in government funding opens up a huge opportunity for private capital.”

Private credit, lending directly to companies by private investors rather than banks—has expanded sharply over the past few years as tighter regulations and cautious bank lending created a funding gap. Investors have increasingly turned to this asset class for higher yields, even as risks around corporate debt have grown.

Ranjan said that high-quality companies still need growth capital and are actively looking for long-term investment partners rather than short-term financing. “Investor interest in this space is strong, and we expect it to continue expanding,” he said.

The comments come at a time when cracks are beginning to show in the credit market. The bankruptcies of Tricolor Holdings, an auto lender, and First Brands Group, a car parts supplier, have unsettled investors. Earlier this month, JPMorgan Chase & Co. CEO Jamie Dimon warned that such events may be signs of broader stress in the system, remarking that “when you see one cockroach, there are probably more.”

Still, Ranjan remains optimistic. He argued that while some defaults are inevitable, they don’t define the entire market. “The opportunities outweigh the setbacks,” he implied, suggesting that the diversity of private capital, ranging from equity to structured credit can help cushion market volatility.

Brookfield, headquartered in Toronto, is one of the world’s largest alternative asset managers, with interests spanning real estate, infrastructure, renewable power, and private equity. It has steadily expanded its presence in the Middle East, where sovereign wealth funds and institutional investors are playing a growing role in global finance.

The firm’s private equity arm focuses on long-term investments in sectors such as infrastructure, energy transition, and technology. Ranjan noted that the Middle East’s growing appetite for alternative assets aligns well with Brookfield’s strategy. “This region has the capital, the vision, and the long-term outlook to invest in transformational growth,” he said.

Globally, private markets have been adjusting to a new economic reality shaped by higher interest rates and a retreat in public market liquidity. In this environment, both private equity and private credit are filling financing gaps that banks and governments are increasingly unwilling or unable to bridge.

Ranjan’s remarks underline a broader shift: instead of competing, private equity and private credit are becoming complementary forces. Private equity provides long-term growth capital and strategic guidance, while private credit offers flexibility and speed. Together, they’re redefining how businesses access funding in a more cautious global economy.

As Ranjan summed up, the future of investing isn’t about one asset class replacing another—it’s about how private capital adapts to keep global growth moving.