In recent years, investors have increasingly embraced private credit to diversify fixed-income portfolios. A key reason? It has demonstrated resilience and adaptability across a range of macroeconomic environments.

In our view, private credit has shown the ability to offer reliable income, structural protections and an attractive risk-return profile—in both rising and falling interest-rate cycles. This is because of private credit’s unique features, including the use of floating-rate coupons.

Read our latest paper to learn more and understand why we believe that private credit is a strategy that is built to perform—and endure—through all seasons.

IMPORTANT DISCLOSURES 

All investing involves risk. The value of an investment will fluctuate over time, and an investor may gain or lose money, or the entire investment. Past performance is no guarantee of future results. 

Alternative investments are subject to a variety of risks and limitations, including but not limited to illiquidity, lack of transparency, complex structures, and the potential for significant loss of principal. These investments may not be suitable for all investors, and there is no guarantee that diversification, enhanced income, or risk-mitigation objectives will be achieved. Investors should carefully consider these risks before investing. 

Private credit investments, including bespoke capital solutions and rescue financings, involve significantly higher risks than traditional fixed income investments. These risks include greater illiquidity, higher default rates, valuation challenges, and potential loss of principal. The "compelling returns" mentioned are not guaranteed and reflect compensation for these elevated risks. Execution of these strategies may involve complex negotiations, extended timelines, and recovery challenges. These investments typically demonstrate higher sensitivity to economic downturns and may perform differently than expected in changing market conditions.

The information contained herein is for educational and informational purposes only and does not constitute, and should not be construed as, an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments. This commentary discusses broad market, industry or sector trends, or other general economic or market conditions, and it is being provided on a confidential basis.

Views and opinions expressed are subject to change. This commentary is being made available for educational and informational purposes only and does not constitute, and should not be construed as, an offer to sell, or a solicitation of an offer to buy, any securities or related financial instruments in any jurisdiction. Further this communication does not constitute and should not be construed as are commendation or testimonial for any securities, related financial instruments, products or services of Brookfield Corporation (“Brookfield”) and certain of its affiliates.

FORWARD-LOOKING STATEMENTS

The information herein contains, includes or is based on forward-looking statements within the meaning of federal securities laws, specifically Section 21E of the Securities Exchange Act of 1934, as amended, and Canadian securities laws. Forward-looking statements include all statements, other than statements of historical fact, that address future activities, events or developments, including, without limitation, business or investment strategy or measures to implement strategy, competitive strengths, goals, expansion and growth of our business, plans, prospects and references to our future success. You can identify these statements by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe” and other similar words are intended to identify these forward-looking statements. Forward-looking statements can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining our actual future results or outcomes. Consequently, no forward-looking statement can be guaranteed. Our actual results or outcomes may vary materially. Given these uncertainties, you should not place undue reliance on these forward-looking statements. 

Information and views are subject to change without notice. Some of the information provided herein has been prepared based on Brookfield’s internal research, and certain information is based on various assumptions made by Brookfield, any of which may prove to be incorrect. Brookfield may not have verified (and disclaims any obligation to verify) the accuracy or completeness of any information included herein, including information that has been provided by third parties, and you cannot rely on Brookfield as having verified any of the information. 

INDEX PROVIDER DISCLAIMER

The quoted indexes within this publication are unmanaged andcannot be purchased directly by investors. Index performance is shown for illustrative purposes only and does not predict or depict the performance of any investment. There may be material factors relevant to any such comparison, such as differences in volatility and also regulatory and legal restrictions between the indexes shown and any investment in a Brookfield strategy, composite or fund. Brookfield obtained all index data from third-party index sponsors and believes the data to be accurate; however, Brookfield makes no representation regarding its accuracy. Indexes are unmanaged and cannot be purchased directly by investors. Brookfield does not own or participate in the construction or day-to-day management of the indexes referenced in this document. The index information provided is for your information only and does not imply or predict that a Brookfield product will achieve similar results. This information is subject to change without notice. The indexes referenced in this document do not reflect any fees, expenses, sales charges or taxes. It is not possible to invest directly in an index. The index sponsors permit use of their indexes and related data on an “as is” basis, make no warranties regarding same, do not guarantee the suitability, quality, accuracy, timeliness and/or completeness of their index or any data included in, related to or derived therefrom, and assume no liability in connection with the use of the foregoing. The index sponsors have no liability for any direct, indirect, special, incidental, punitive, consequential or other damages (including loss of profits). The index sponsors do not sponsor, endorse or recommend Brookfield or any of its products or services. Unless otherwise noted, all indexes are total-return indexes.

INDEX DEFINITIONS

Cliffwater Direct Lending Index measures the unlevered, gross-of-fees performance of U.S. middle-market corporate loans, as represented by the asset-weighted performance of the underlying assets of business development companies (BDCs), including both exchange-traded and unlisted BDCs, subject to certain eligibility requirements.

FTSE 10-Year Treasury Benchmark Index measures the performance of total returns for the current ten-year on-the-run Treasuries that settle by the end of the calendar month.

ICE BofA Global Corporate Index tracks the performance of U.S. dollar-denominated investment-grade corporate debt publicly issued in the U.S. domestic market. It includes bonds from various sectors and regions, providing a comprehensive view of the corporate debt market.

ICE BofA U.S. High Yield Index tracks the performance of U.S. dollar-denominated below-investment-grade corporate debt publicly issued in the U.S. domestic market.

S&P UBS Leveraged Loan Index measures the market-value-weighted performance of the investable universe of U.S. dollar-denominated leveraged loans.

S&P U.S. High Yield Corporate Bond Index is designed to track the performance of U.S. dollar-denominated, high-yield corporate bonds issued by companies whose country of risk use official G-10 currencies, excluding those countries that are members of the United Nations Eastern European Group (EEG). Qualifying securities must have a below-investment-grade rating (based on the lowest of S&P Global Ratings, Moody’s, and Fitch) and maturities of one or more months.

© 2025 Brookfield Corporation; © 2025 Oaktree Capital Management, L.P.; © 2025 Brookfield Oaktree Wealth Solutions LLC; and © 2025 Brookfield Public Securities Group LLC

ID B-843053