Brookfield's $3B Oaktree Buyout: Credit Ambitions Take Center Stage

Strategic Expansion: Brookfield Set to Acquire Remaining Stake in Oaktree

Brookfield Corporation (NYSE/TSX: BN) and Brookfield Asset Management (NYSE/TSX: BAM) have announced a $3 billion deal to purchase the remaining 26% interest in Oaktree, a leading global credit manager, cementing Brookfield's full ownership of the firm. The transaction, expected to close in Q1 2026 pending regulatory approvals, will make Oaktree an integral part of Brookfield’s already expansive credit platform.

Deal Structure Targets Alignment, Growth, and Minimal Dilution

Under the agreement, Oaktree equity holders can elect to receive cash, BAM shares, or—subject to certain restrictions—BN shares. Notably, the deal structure employs two- and five-year lock-ups on BAM and BN shares, respectively, designed to ensure alignment with the firm’s long-term growth goals. BAM and BN also intend to repurchase a corresponding number of their own shares to offset any potential dilutive effects—maintaining value for current shareholders.

Broader Impact: A Transformative Boost to Credit Platform and U.S. Presence

Brookfield CEO Bruce Flatt emphasized the value generated from the original partnership: Oaktree’s AUM grew by 75% over the last six years. Full integration is positioned to further scale Brookfield’s credit offerings and improve cross-business collaboration. Oaktree Co-Chairman Howard Marks described the transaction as a 'natural evolution' and highlighted Oaktree’s continued role as a key pillar in Brookfield’s credit strategy.

With Oaktree fully under its wing, Brookfield further anchors its U.S. footprint. Over half of BAM’s workforce and revenues will now be based in the U.S., and BAM manages more than $550 billion of assets in the country. This also strengthens BN’s inclusion in major U.S. indices, supporting long-term institutional interest.

Financial Implications: Accretive Earnings and Greater Scale

The transaction is expected to be accretive to both BAM and BN. BN will gain greater exposure to carried interest and balance sheet investments, while BAM expands its fee-earning streams. Fee-Related Earnings (FRE) for BAM totaled $2.8 billion (trailing twelve months, including Oaktree), underscoring its position among top global alternative asset managers. Additionally, the structure aims for little to no dilutive impact to shareholders.

Leadership and Continuity Remain Central

Brookfield has emphasized stability and ongoing collaboration. Howard Marks will continue on BN’s board, Bruce Karsh is slated for a seat on the BAM board, and Oaktree’s current Co-CEOs will become Co-CEOs of Brookfield’s overall credit business. The operational independence and culture that drove Oaktree’s historic performance will remain key elements of its integration.

Looking Forward: Key Takeaways for Investors

With this buyout, Brookfield signals that private credit—and alternative asset management more broadly—remains a central pillar of its growth strategy. The structure ensures strong alignment and limits dilution, while giving Oaktree’s leadership meaningful roles going forward. The U.S. market’s increasing prominence in Brookfield’s portfolio is also clear, enhancing both market presence and index eligibility.

While the deal awaits final regulatory approval, the outlined steps provide current and prospective shareholders with reasons to watch both BN and BAM’s credit-driven ambitions in 2026 and beyond.

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