Investments
Private Credit
Allocation
5.3%
Annual return
11.21%
Exposure
$0.49 B
Benchmark
9.24%
2024 performance
Private credit generated a gain of 11.21% in 2024 compared to our benchmark return of 9.24% (LSTA + 50 basis points). The return was driven primarily from interest income and spread tightening. Since most of the program is exposed to floating rate debt, the portfolio benefits from the higher-than-normal short-term interest rates observed in 2024. The largest driver of return was our co-investment in Antares, the largest mid-market private lender in the United States. Detractors of performance included the real estate debt fund, Brookfield Real Estate Finance V. The difficulties in this fund relate to office exposure across the United States where work from home culture since the COVID-19 pandemic has nerivate credit generated a net gain of 8.17% in 2023 compared to our benchmark of 10.83% (LSTA +50 basis points). The return was driven primarily from interest income. Almost all of the program is exposed to floating rate debt. Because of this, the portfolio benefited from higher short-term rates and were less sensitive to changes in long-term yields.
The largest driver of return was our co-investment in Antares, the largest mid-market private lender in the United States. Detractors of performance included Brookfield Real Estate Finance V. The difficulties in this fund relate to office exposure across the United States where work-from-home culture since the COVID-19 pandemic has negatively impacted office vacancy.
Investment approach
Private credit covers an array of strategies that span the capital structure and borrower type. These range from senior secured loans for corporate borrowers, junior and unitrache, real estate mezzanine lending and even asset-based specialty finance that includes lending against contractual revenue streams like royalties.
Capital allocation
Total investments in private credit increased to $486 million at the end of 2024, up from $464 million in 2023. This increase was primarily driven by additional capital invested within existing funds, capital invested into two new funds and a valuation increase associated with our co-investment in Antares. The private credit program ended 2024 at 5.30% of total fund assets. Our intention for 2025 is to continue to build out the program methodically as opportunities arise in the credit market.
Private Credit
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Allocation
5.3%
Annual return
11.21%
Exposure
$0.49 B
Benchmark
9.24%
2024 performance
Private credit generated a gain of 11.21% in 2024 compared to our benchmark return of 9.24% (LSTA + 50 basis points). The return was driven primarily from interest income and spread tightening. Since most of the program is exposed to floating rate debt, the portfolio benefits from the higher-than-normal short-term interest rates observed in 2024. The largest driver of return was our co-investment in Antares, the largest mid-market private lender in the United States. Detractors of performance included the real estate debt fund, Brookfield Real Estate Finance V. The difficulties in this fund relate to office exposure across the United States where work from home culture since the COVID-19 pandemic has nerivate credit generated a net gain of 8.17% in 2023 compared to our benchmark of 10.83% (LSTA +50 basis points). The return was driven primarily from interest income. Almost all of the program is exposed to floating rate debt. Because of this, the portfolio benefited from higher short-term rates and were less sensitive to changes in long-term yields.
The largest driver of return was our co-investment in Antares, the largest mid-market private lender in the United States. Detractors of performance included Brookfield Real Estate Finance V. The difficulties in this fund relate to office exposure across the United States where work-from-home culture since the COVID-19 pandemic has negatively impacted office vacancy.
Investment approach
Private credit covers an array of strategies that span the capital structure and borrower type. These range from senior secured loans for corporate borrowers, junior and unitrache, real estate mezzanine lending and even asset-based specialty finance that includes lending against contractual revenue streams like royalties.
Capital allocation
Total investments in private credit increased to $486 million at the end of 2024, up from $464 million in 2023. This increase was primarily driven by additional capital invested within existing funds, capital invested into two new funds and a valuation increase associated with our co-investment in Antares. The private credit program ended 2024 at 5.30% of total fund assets. Our intention for 2025 is to continue to build out the program methodically as opportunities arise in the credit market.