Brookfield said on Monday it would buy the remaining 26% stake in U.S.-based asset manager Oaktree Capital Management for about $3 billion, as the investment firm looks to strengthen its credit business.
Under the terms of the deal, New York-based Brookfield Asset Management and its parent, Brookfield, will fund roughly $1.6 billion and $1.4 billion of the purchase price, respectively.
The deal will make the U.S. the largest market for Brookfield Asset Management, with $550 billion in assets across the country, employing more than 50% of its workforce and generating about half of its revenue.
Brookfield had bought most of Oaktree for roughly $5 billion in 2019, creating an alternative asset manager juggernaut to compete against heavyweights such as Blackstone.
The move had allowed Brookfield to scale its private credit business and expand its wealth solutions business, which offers tailored investment strategies across public and private markets.
Founded in 1995, Oaktree specializes in distressed debt investing, and had $209 billion in assets under management as of June 30.
Including 100% of Oaktree, Brookfield Asset Management generated roughly $2.8 billion in fee-related earnings over the last twelve months.
"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," said Howard Marks, co-chairman of Oaktree.
Marks will remain on Brookfield's board, while Bruce Karsh, the chief investment officer of Oaktree, will join Brookfield Asset Management's board.
Additionally, Oaktree co-CEOs Robert O'Leary and Armen Panossian will become the co-CEOs of Brookfield's credit business.
The deal is expected to close in the first quarter of 2026.
