Real assets giants to join forces as Brookfield buys 62% of Oaktree

Brookfield Asset Management is acquiring 62% of Oaktree Capital Management, bringing together two companies that manage more than $300bn (€265bn) in real assets between them.

The two companies will continue operate independently and retain their respective names, but a joint announcement today said they will partner “to leverage their strengths”.

Brookfield, the world’s largest real estate investment manager and second-largest infrastructure fund manager according to IPE Real Assets research, had $188bn in real estate assets under management at the end of 2018, along with $61bn in infrastructure and $47bn in renewable power.

Oaktree is smaller with $9.55bn in real estate assets under management and $2.44bn in infrastructure.

Both will continue to be led by their existing management and investment teams. Howard Marks will continue as co-chairman of Oaktree, Bruce Karsh as co‑chairman and CIO, and Jay Wintrob as CEO.

Marks and Karsh will continue to have operating control of Oaktree as an independent entity for the foreseeable future. Marks will join Brookfield’s board of directors.

Bruce Flatt, CEO of Brookfield, said: “As we continue to strategically grow Brookfield, we are thrilled to be partnering with Oaktree and with its exceptional management team whose credit business is second to none.

“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.”

Marks said: “The opportunity to join forces with Brookfield is ideal. Our firms share a culture that emphasises both investing excellence and integrity, and our businesses mesh without overlapping or conflicting.

“The rest of Oaktree management and I are excited about the combination of support and independence we expect. We look forward to having Brookfield’s contribution to our ability to serve our clients, and to doing the same for them.”

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