Brookfield Reaches $3B Deal To Take Over Private Credit Giant Oaktree
Canadian investment giant Brookfield is finishing what it started in 2019, buying the 26% of Oaktree Capital Management that it doesn't already own to bulk up its credit business in the United States.
Brookfield Corp. and Brookfield Asset Management, its New York-based investment giant subsidiary, expect to spend roughly $3B in cash and stock to buy out the remaining Oaktree shareholders. Brookfield said the transaction, expected to close in early 2026, will solidify the U.S. as BAM’s largest and most significant market.
The payment structure is expected to be in line with Brookfield's current ownership stake, with BAM funding $1.6B worth of the deal and Brookfield Corp. paying the remaining $1.4B, the companies said.
Oaktree shareholders are being offered either cash or shares in BAM or Brookfield Corp. for their stake in the alternative investment firm, which had $209B in assets under management and offices in 26 cities across the globe at the end of June.
Brookfield says the transaction won't result in any material changes to its or BAM's operations or strategic plans.
Senior leadership at Oaktree will join Brookfield as part of the deal. Oaktree co-CEOs Robert O’Leary and Armen Panossian will become co-CEOs of Brookfield’s credit business.
Bruce Karsh, Oaktree co-chairman and chief investment officer, will continue his involvement with operations while joining the Brookfield Corp. board. Oaktree co-Chairman Howard Marks will also continue running the business while joining the board at BAM.
Oaktree will be folded into Brookfield’s credit business but continue operating as a distinct entity once the transaction is complete, a source familiar with the deal said.
Brookfield paid $4.8B in cash and stock in 2019 to acquire a majority interest in Oaktree, and then it rapidly expanded the business. BAM, including all of Oaktree’s transactions, had raised roughly $2.8B in fee-related earnings in the last 12 months.
“The results have surpassed our expectations,” BAM CEO Bruce Flatt said in a statement. “Our partnership has created meaningful value for our firms. It has fueled the rapid expansion of our private credit platform, supported the growth of our Wealth Solutions business, and helped drive 75% growth in Oaktree’s assets under management.”
The deal would expand BAM’s U.S. market presence to more than $550B in assets under management. Once the acquisition is complete, more than half of BAM’s employees will be based in the U.S., with assets in the country generating roughly half of revenue.
Shares in both Brookfield Corp. and BAM were up more than 3% in early trading Monday amid a broader market rally after a selloff on Friday.
Brookfield collectively has more than $1T in assets under management across real estate, infrastructure, private equity, renewable power and credit. It raised nearly $6B for a real estate opportunity fund targeting distressed assets in May.
Oaktree is primarily a debt investor, with $149B in credit investments, according to its website. Its equity investments total $26B, and its real estate business manages $14B.
“The addition of one of the largest U.S.-based credit managers deepens BAM’s long-standing presence in the country, strengthens its commitment to investing in the U.S. economy, and expands its U.S. shareholder base,” Brookfield said in a statement.
