Brookfield takes full control of Oaktree in USD3b deal
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The news: Brookfield will acquire the remaining 26% stake of distressed debt specialist Oaktree Capital Management that it does not already own, bolstering its position as a key alternative credit provider.
The numbers: Brookfield will acquire the 26% stake for around USD3 billion ($4.6 billion), which will value Oaktree at around USD11.5 billion, which has seen its assets under management climb 75% since Brookfield bought a 62% stake in 2019.
Of the USD3 billion purchase price, Brookfield Asset Management and Brookfield Corporation will fund approximately USD1.6 billion and USD1.4 billion, respectively, reflecting their proportional ownership of Oaktree today.
The context: As part of the integration, which is expected to close in early 2026, Oaktree’s co-CEOs, Robert O’Leary and Armen Panossian, will become co-CEOs of Brookfield’s global credit business. Oaktree co-founder Howard Marks will remain on Brookfield Corp.’s board, while Bruce Karsh, the second Oaktree co-founder, will join the board of Brookfield Asset Management.
“With this closer alignment, Oaktree will remain central to Brookfield’s credit strategy, and we see significant opportunities to grow the franchise and expand what we can offer our clients together,” Marks said in a statement on Monday.
While Brookfield has traditionally focused on real estate and infrastructure, its partnership with Oaktree helped strengthen the firm’s credit business.
“Taking this next step will allow us to broaden our credit franchise, enhance collaboration across our businesses and strengthen our ability to continue delivering long-term value for our investors,” Brookfield CEO Bruce Flatt said.
The transaction will establish the US as Brookfield Asset Management’s largest and most significant market, where it manages over USD550 billion of critical assets and services operating across the country. Upon completion, more than 50% of BAM’s employees will be based in the US and approximately 50% of revenue will be generated there.
The source: Brookfield Asset Management
