Brookfield to Acquire Majority Stake in Angel Oak

Two-US-based asset management firms – Brookfield Asset Management and Angel Oak Companies – have entered into an agreement in which Brookfield will acquire a majority ownership stake in Angel Oak and offer its investors access to the firm’s residential mortgage credit strategies.

Angel Oak joins Brookfield as part of the firm’s $317 billion credit business, aligning with Brookfield’s broader strategy to partner with best-in-class credit managers alongside its direct investment platform, Brookfield said in a filing with the US Securities and Exchange Commission (US) on Monday.

Brookfield Credit CEO Craig Noble said that their origination and investment capabilities will be a strong complement to Brookfield’s overall credit offering as we grow our platform. We believe Brookfield can add significant value as Angel Oak looks to build upon its success by both broadening and deepening its relationships with institutional investors.

Since its founding in 2008, Angel Oak has grown into a premier alternative asset manager with more than over $18 billion in assets under management, serving both institutional and individual investors.

It provides differentiated access to the US non-agency residential mortgages through a vertically integrated platform that combines its leading non-bank wholesale mortgage originator, Angel Oak Mortgage Solutions, with its asset management business, Angel Oak Capital Advisors.

This integrated model, supported by deep market expertise, has resulted in a strong track record of delivering high-quality credit investments. Over the past decade, Angel Oak has originated more than $30 billion in residential mortgage loans and issued over 60 securitisations—a pace expected to accelerate given the growth in borrower segments that are underserved by traditional lenders.

Aligning with Brookfield’s Vision

Sreeni Prabhu and Mike Fierman, co-founders and Co-CEOs of Angel Oak, said that their partnership with Brookfield, whose disciplined investment approach, proven track record of achieving robust long-term growth, and global presence aligns perfectly with their vision.

This partnership validates Angel Oak’s proven model and past success, while opening new avenues for growth and innovation in providing clients access to residential mortgage credit. With Brookfield as partner, they see significant opportunities to scale our integrated asset management and mortgage operations to better serve our clients, they added.

Angel Oak will continue to operate its business independently, retaining its current leadership, including Prabhu and Fierman as Co-CEOs.

Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as Brookfield’s legal counsel. KingsRock Securities LLC, a wholly owned subsidiary of KingsRock Advisors LLC, acted as exclusive financial advisor to Angel Oak, and UBS Investment Bank advised the management team of Angel Oak on this transaction. Paul Hastings LLP acted as legal counsel to Angel Oak.

Brookfield Credit manages approximately $317 billion of assets globally, focused on a broad range of private credit investment strategies, including infrastructure, renewables, real estate, asset backed, and corporate credit.

Angel Oak Mortgage Solutions, a leader in alternative lending solutions, is the top nonbank wholesale and correspondent lender of non-QM loans in the nation. Its team of mortgage experts has pioneered a common sense approach to overcoming today’s mortgage lending challenges.