Brookfield and Oaktree have announced a proposed transaction in which Brookfield aims to acquire the remaining 26% interest it does not currently own in Oaktree. This acquisition will result in Brookfield holding 100% ownership of Oaktree, recognized as one of the premier credit managers in the world. The move is intended further to bolster Brookfield’s market-leading and diversified credit platform, allowing for greater synergy and efficiency in its operations.
The terms of this transaction outline that Brookfield Asset Management Ltd. (BAM) and Brookfield Corporation (BN) will jointly acquire all remaining common equity interests in Oaktree for a total consideration of about $3 billion. Shareholders of Oaktree will have the choice to receive payment either in cash, shares of BAM, or—subject to certain conditions—shares of BN.
To ensure alignment with Oaktree’s existing shareholders, the BAM shares provided will be subject to a two-year lock-up period, while BN shares will be under a five-year lock-up. This approach aims to facilitate future growth for the Oaktree shareholders involved in the transaction. BAM and BN plan to repurchase a number of shares equivalent to those issued to Oaktree shareholders, either through the open market or directly from BN, which promises to have minimal dilutive impact on existing shareholders of BAM and BN.
In terms of leadership, both Howard Marks and Bruce Karsh, who serve as Co-Chairman and Chief Investment Officer of Oaktree, will continue their roles at senior levels. Marks will remain on the BN Board, while Karsh is expected to join the BAM Board at or before the transaction’s closing. Additionally, Robert O’Leary and Armen Panossian, Co-CEOs of Oaktree, will assume the positions of Co-CEOs of Brookfield’s credit business, ensuring smooth integration and operational continuity.
This acquisition is set to enhance BAM’s financial profile significantly. With the inclusion of Oaktree, BAM is projected to generate around $2.8 billion in fee-related earnings over the past twelve months alone, solidifying its reputation as one of the leading alternative asset managers globally. The transaction is also expected to increase BN’s distributable earnings through enhanced participation in net carried interest from Oaktree’s funds and balance sheet investments, thus providing a boost to overall company performance.
Plans for closing the transaction are tentatively set for the first quarter of 2026. However, this is contingent upon obtaining regulatory approvals and fulfilling customary closing conditions. Once finalized, the transaction is expected to be beneficial to both BAM and BN, contributing positively to their financial standing.
Furthermore, this acquisition will designate the United States as BAM’s largest and most prominent market. The company currently manages over $550 billion in critical assets across the country. Following the transaction, it is projected that more than 50% of BAM’s workforce will be located in the U.S., contributing roughly 50% of its revenue. By adding one of the largest U.S.-based credit managers, Brookfield will not only deepen its established presence in the country but will also strengthen its commitment to investing in the U.S. economy. This move is set to broaden BAM’s shareholder base and improve its inclusion in U.S. market indices, highlighting its alignment with current market trends.
KEY QUOTES:
“When we partnered with Oaktree six years ago, we joined forces with one of the world’s most respected credit investors, and the results have surpassed our expectations. 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. 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.”
Bruce Flatt, CEO of Brookfield
“Our partnership with Brookfield has been a great success, built on shared values of disciplined investing, long-term thinking, and integrity. Together, we’ve proven our ability to work seamlessly and deliver the best of both firms to our clients. Becoming part of Brookfield in full is a natural evolution that will allow Oaktree to continue thriving as part of one of the world’s leading investment organizations. 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.”
Howard Marks, Co-Chairman of Oaktree
