Bloomberg Talks: Brookfield Asset Management CEO Connor Teskey Talks Private Credit
Episode Date: March 3, 2026
Guest: Connor Teskey, CEO of Brookfield Asset Management
Host/Interviewers: Bloomberg Team

Episode Overview

This episode features a high-level conversation with Connor Teskey, CEO of Brookfield Asset Management, recorded during the Bloomberg Invest conference. The discussion revolves around the attractiveness and evolution of private credit markets, Brookfield’s global investment strategies in light of geopolitical events, the distinctions within the credit market, and the impact of AI-driven infrastructure demand—specifically data centers. Teskey shares insights on risk management, the importance of long-term thinking, and why Brookfield remains bullish on renewable energy, infrastructure, and private credit, even amid volatility in global markets.

Key Discussion Points & Insights

1. Leadership Transition at Brookfield (00:52 - 01:20)

• Connor Teskey describes the transition to CEO as “thoughtful, methodical, incremental,” giving credit to former CEO Bruce Flatt and the senior leadership team.
  • Quote (00:59):
    “Very little [has changed]. At Brookfield, we run a lot of businesses... The transition was very thoughtful, methodical, incremental. Nice to get the announcement out of the way and just back to business as usual.” — Connor Teskey

2. Macro Environment & Geopolitical Volatility (01:20 - 03:11)

• The host addresses heightened global volatility, referencing recent Middle East tensions and asking if Brookfield is reconsidering strategy.
• Teskey emphasizes their long-term investment philosophy:
  • Quote (01:51):
    “We’re very long-term investors...assets that produce cash across a cycle, they're downside protected, they're inflation linked. So we will take a very, very long-term view.”
• Geographic instability (Iran/Israel) doesn’t alter their conviction in regional investments, especially since partnerships like the $20B venture with Qatar focus on critical infrastructure.
  • Quote (02:44):
    “When something like the past weekend happens, the focus is on our people...and then our focuses are on the assets. And those are all performing.”
  • Quote (03:37):
    “We tend to have durations far beyond single administrations, political parties, individual leaders. And therefore, we focus on the fundamentals.”

3. Focus on Private Credit & Market Fundamentals (04:03 - 06:07)

• Brookfield manages significant assets across real estate, infrastructure, renewable power, and credit.
• Teskey distinguishes between credit, private credit, and direct lending:
  • Credit markets are “in very good shape”; corporate balance sheets are strong; banks and capital markets are liquid.
  • Private credit for Brookfield means asset-backed lending, real asset lending, and opportunistic credit—all seeing strong fundamentals.
  • Direct lending is a smaller, riskier subset: some concerns exist around tightening spreads and liquidity, but it's “a very small component of the broader credit market.”
  • Quote (04:32):
    “Credit, private credit and direct lending are almost used synonymously...and they represent very different things...Our private credit focus is on three things: asset-backed lending, real asset lending, and opportunistic credit.”
• Regarding risks, Brookfield has de minimis exposure to the riskiest sectors and is positioning to benefit from trends like AI.

4. Oaktree Partnership & Contrarian Strategies (05:32 - 06:07)

• Brookfield’s full partnership with Oaktree is highlighted as a strategic move to harness expertise in contrarian credit investing.
  • Quote (05:50):
    “We’ve recently announced our full partnership with Oaktree, a very contrarian credit investor that’s extremely well placed to go to work in this environment.”

5. Liquidity & Perpetual Credit Vehicles (06:07 - 07:19)

• Teskey distinguishes between issues of credit quality and vehicle liquidity.
• He sees perpetual credit vehicles as “great long-term,” offering private market exposure to more investors, but emphasizes the need for proper management and understanding of liquidity requirements.
  • Quote (06:53):
    “Perpetual credit vehicles...need to be managed, they need to be invested appropriately, and they...need to be executed in a way that is thoughtful given the liquidity requirements they will have over time.”

6. Private Markets for Broader Investor Base (07:07 - 07:54)

• Expanding private markets to wider investor pools remains a core theme.
• Private markets offer diversification, exposure to growth themes, and historically premium returns.
• The importance of structure, management, and investor understanding are underscored.
  • Quote (07:19):
    “Private markets offer an incredible opportunity for investors of all types...when they are offered to the individual investor, it needs to be through a structure that is well understood on both sides.”

7. AI & Data Centers: Infrastructure Opportunity (08:16 - 08:59)

• The surge in AI is driving unprecedented demand for data centers.
• Brookfield sees demand from “the largest, highest quality credit counterparties” such as leading global corporations and sovereigns—creating a significant opportunity for productivity enhancement.
  • Quote (08:28):
    “The demand is being driven by the largest, highest quality credit counterparties...this is creating what is going to be a productivity enhancement for economies and businesses going forward.”
  • Quote (08:59):
    “Nothing slowing down.”
    — Teskey’s succinct assessment of AI/data center investment momentum.

Notable Quotes & Memorable Moments

• On Brookfield’s long view:
  “We tend to have durations far beyond single administrations, political parties, individual leaders. And therefore, we focus on the fundamentals.” (03:37)

• On risk exposure:
  “We’ve been very cautious and incremental about our exposure to the headlines...What’s more important is we’ve positioned our entire business to be a net beneficiary from AI penetration.” (05:32)

• On private credit for everyday investors:
  “When they are offered to the individual investor, it needs to be through a structure that is well understood on both sides and is managed appropriately from both an investment and a liquidity standpoint.” (07:19)

• On the data center/AI boom:
  “It needs large-scale capital. It needs operating expertise across energy, real estate and digital infrastructure. We’re excited because we think there’s a big role for us to play.” (08:28)

Segment Timestamps

• Leadership Transition: 00:52 – 01:20
• Global Macro Volatility / Middle East: 01:20 – 03:11
• Regional Opportunity & Iran: 03:11 – 04:03
• Credit Market Overview: 04:03 – 06:07
• Oaktree Partnership: 05:32 – 06:07
• Credit Quality vs. Liquidity / Perpetual Vehicles: 06:07 – 07:19
• Private Markets Expansion: 07:07 – 07:54
• Risk Management & Individual Investors: 07:54 – 08:16
• AI & Data Center Investment Trends: 08:16 – 08:59

Tone & Takeaways

The conversation is forthright, confident, and grounded in a philosophy of patient, risk-managed, long-term investing. Teskey is optimistic about private markets, especially as AI and infrastructure trends accelerate, but is careful to distinguish between different asset types and stress the importance of proper structure and risk controls for broader investor participation. The partnership with Oaktree and a notable emphasis on the continued buildout of data centers underscore Brookfield’s forward-looking strategy in a rapidly evolving investment universe.