Cloud 9fin Private credit goes up a grade
Oct 29, 2025
Ryan Schwartz, Managing Director at Brookfield Asset Management, dives into the booming world of investment-grade private credit. He explains how this asset class offers flexible capital solutions tailored for credit-worthy companies. Ryan discusses the complexity of bespoke structures and why IG firms prefer private capital for M&A and liquidity. He forecasts significant growth in the sector, highlighting that education will be key for C-suites adopting these innovative financing options.
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Definition Of Investment-Grade Private Credit
- Investment-grade private credit delivers large-scale, flexible capital solutions tailored to credit-worthy companies.
- These deals target bespoke structures that aim to achieve investment-grade risk characteristics through contractual look-throughs.
Joint Venture Offtake Example
- Brookfield sometimes structures joint ventures where equity exposure is partly a direct look-through to an IG parent via an offtake contract.
- That look-through is how they engineer investment-grade quality on portions of the investment.
Hybrid Capital Nature
- These structures are hybrids meant to feel like equity to the borrower and debt to the investor while delivering investment-grade risk.
- Achieving alignment across counterparties makes the structures inherently complex and bespoke.