Brookfield Asset Management to acquire 62% of Oaktree Capital Management
Both firms will continue to operate their respective businesses independently
TORONTO – Brookfield Asset Management plans to acquire roughly 62 per cent of global investment manager Oaktree Capital Management in a cash-and-stock deal.
As part of the transaction, Brookfield will acquire all outstanding Oaktree Class A units for either US$49 in cash or 1.0770 Class A shares per unit.
The companies say in a joint release that this represents a premium of 12.4 per cent per Oaktree Class A unit based on the closing prices of both companies on March 12.
Oaktree shareholders will be able to choose either cash or stock compensation, but the total overall amount paid by Brookfield will consist of 50 per cent in cash and 50 per cent in shares.
The cash-and-stock deal is valued at more than US$4 billion.
Both firms will continue to operate their respective businesses independently, and remaining under their current brand, management and investment teams.
The two companies together will have roughly US$475 billion of assets under management and US$2.5 billion of annual fee-related revenues.
Oaktree, whose global headquarters is in Los Angeles, has an “exceptional” management team and a credit business which is “second to none,” said Brookfield’s chief executive Bruce Flatt in a statement.
“This transaction enables us to broaden our product offering to include one of the finest credit platforms in the world, which has a value-driven, contrarian investment style, consistent with ours.”