Capital Structures Are Converging, and Credit and Equity Are No Longer Opposites

The balance of power in private markets is shifting. As Brookfield’s Head of Private Equity Anuj Ranjan told Bloomberg at Riyadh’s Future Investment Initiative, “I wouldn’t say it edged out private equity.”

He’s right. Private credit has grown into a $2.1 trillion asset class, while private equity still holds more than $8 trillion globally. Firms like Brookfield (AUM $900 billion+) now operate across both, using credit and equity as complementary tools. Credit offers yield and protection on the downside, while equity brings control and long-term growth.

Research backs this convergence. Studies show that lenders today are “actively and dynamically involved in firm governance … outside financial distress.” Reports from the Federal Reserve and IMF also note that private credit, banks, and private equity now function within one connected capital ecosystem.

As Ranjan put it, Brookfield’s “whole business is literally pricing risk.” That mindset reflects where the industry is heading: the strongest firms will be those that can deploy capital wisely across the full spectrum - from lending to ownership.