- Brookfield is acquiring the remaining 26% of Oaktree Capital Management for $3B, giving it full ownership and valuing the credit-focused firm at approximately $11.5B.
- The acquisition expands Brookfield’s footprint in credit investing, a key growth area, with Oaktree’s AUM growing 75% since the initial stake purchase six years ago.
- The deal is expected to close in early 2025, with Oaktree’s co-CEOs taking on leadership roles in Brookfield’s expanded credit division.
Brookfield Doubles Down On Credit
Brookfield Asset Management and its parent company, Brookfield Corp., are acquiring the remaining stake in Oaktree Capital Management. The $3 billion transaction was announced on Monday, as reported by Bloomberg. The move deepens Brookfield’s push into alternative credit, as private lending and distressed debt strategies continue to grow in institutional portfolios.
Full Buyout, Big Valuation
Brookfield initially acquired a majority stake in Oaktree in 2019. This latest deal gives Brookfield full control and values Oaktree at approximately $11.5B. Oaktree’s AUM has surged by 75% since the original investment. This growth highlights the success of the partnership and the broader demand for alternative credit strategies.
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Leadership Integration & Strategic Synergies
Post-acquisition, Oaktree co-CEOs Robert O’Leary and Armen Panossian will become co-CEOs of Brookfield’s credit business. Oaktree co-founders Howard Marks and Bruce Karsh will remain involved. Marks will stay on Brookfield Corp.’s board, while Karsh will join the board of Brookfield Asset Management.
Brookfield CEO Bruce Flatt said the move will “enhance collaboration across our businesses” and support long-term value creation.
Alternative Asset Managers Scale Up
The acquisition follows a wave of consolidation in the alternatives space. BlackRock’s $12.5B acquisition of Global Infrastructure Partners and its $12B deal to acquire HPS Investment Partners underscore a trend. Large asset managers are aggressively expanding into private markets.
Brookfield’s full acquisition of Oaktree aligns with this trend. It will help solidify Brookfield’s position in the US, which will account for over 50% of the firm’s employees and revenue after the deal.
Why It Matters
The deal cements Brookfield’s evolution beyond its real estate and infrastructure roots. It gives the firm full control of a world-class credit platform at a time when institutional demand for alternatives — especially private credit — continues to grow.
Brookfield Asset Management alone will fund $1.6B of the deal, with the remainder coming from its parent, reflecting their shared ownership structure. Once complete, Brookfield will manage over $550B in US assets — a market now core to its global strategy.
