Brookfield to Acquire Remaining Interest in Oaktree

Executive Summary

• Brookfield Asset Management Ltd. (“BAM”) and Brookfield Corporation (“BN”) will acquire the remaining ~26% stake in Oaktree Capital, giving Brookfield 100% ownership of the credit manager for an estimated total consideration of ≈ $3 billion.
• The transaction is expected to close in Q1 2026, be accretive to both BAM and BN, and bolster BN’s distributable earnings through increased participation in Oaktree’s net carried interest and balance‑sheet investments.
• Oaktree’s senior leadership (Howard Marks, Bruce Karsh, Robert O’Leary, Armen Panossian) will remain in key roles post‑closing, ensuring continuity of the credit franchise.

Key Details

• Consideration: Approx. $3 billion total; BAM funds ~​$1.6 bn and BN funds ~​$1.4 bn, reflecting their current proportional ownership of Oaktree.
• Payment Options for Oaktree Holders: Cash, shares of BAM, or (subject to limits) shares of BN.
• BAM shares issued will carry a 2‑year lock‑up; BN shares will carry a 5‑year lock‑up.
• Share Repurchases: Both BAM and BN intend to buy back a number of their own shares equal to the amount issued in the transaction, either on the open market or (for BAM) from BN under regulatory approval, minimizing dilution.
• Leadership Continuity:
• Howard Marks remains on the BN Board; Bruce Karsh will join the BAM Board pre‑or post‑closing.
• Robert O’Leary and Armen Panossian become Co‑CEOs of Brookfield’s credit business.
• Financial Impact:
• Including 100% of Oaktree, BAM generated ≈ $2.8 bn of fee‑related earnings (FRE) over the last twelve months.
• Transaction expected to increase BN’s distributable earnings via greater net carried interest participation.
• Closing Timeline & Conditions: Anticipated Q1 2026 closing, subject to regulatory approvals and customary conditions; deemed accretive to both entities.
• Strategic Rationale: Completes Brookfield’s full ownership of a premier credit manager, expands U.S. presence (BAM’s largest market, > $550 bn assets managed), and aligns Oaktree more closely with Brookfield’s broader credit platform.

Notable Quotes

“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.” – Bruce Flatt, CEO, Brookfield

“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.” – Howard Marks, Co‑Chairman, Oaktree