Brookfield to Acquire Oaktree for $3 Billion
The US-based Brookfield Asset Management (BAM), which manages over $550 billion in assets under management, has announced that it will acquire approximately 26% stake in Oaktree for a consideration of $3 billion.
Upon completion of the proposed transaction, Brookfield will own 100% of Oaktree, one of the world’s premier credit managers, further strengthening Brookfield’s market-leading and broad-based credit platform, the company said in a filing with the US Securities and Exchange Commission on Tuesday.
The proposed transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.
Brookfield CEO Bruce Flatt said that when they partnered with Oaktree six years ago, they joined forces with one of the world’s most respected credit investors, and the results have surpassed all expectations.
“Our partnership has created meaningful value for our firms. It has fuelled 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,” he said.
Oaktree Co-Chairman Howard Marks said that their partnership with Brookfield has been a great success, built on shared values of disciplined investing, long-term thinking, and integrity. Together, both companies proven their ability to work seamlessly and deliver the best of both firms to the 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,” Marks said.
Terms of Transaction
Subject to the terms of the transaction, Oaktree common equity holders will have the option to elect consideration in the form of cash, shares of BAM, or, subject to certain limitations, shares of BN.
The Brookfield shares issued as consideration will be subject to two-year and five-year lock-ups, respectively, providing Oaktree’s holders with the opportunity to participate in the future growth and benefits of the combined business, while further enhancing long-term alignment.
Including 100% of Oaktree, BAM generated approximately $2.8 billion of fee-related earnings over the last twelve months, further establishing its position as one of the world’s leading alternative asset managers, with one of the most comprehensive suites of alternative investment products for investors globally.
This transaction establishes the US as Brookfield’s largest and most significant market. Upon completion, more than 50% of the company’s employees will be based in the US, and approximately 50% of revenue will be generated here.
The addition of one of the largest US-based credit managers deepens BAM’s long-standing presence in the country, strengthens its commitment to investing in the US economy, and expands its US shareholder base, further aligning the company with broader inclusion in the US market indices.
