Brookfield Expands Control Over Oaktree Capital

Brookfield Asset Management (NYSE: BAM) gained 2.4% in extended trading after reports surfaced that the company is nearing a $3 billion deal to acquire the remaining 26% stake in Oaktree Capital Management, the Los Angeles-based alternative investment firm.

According to sources, Brookfield is expected to fund approximately $1.6 billion of the total purchase price, with the balance financed by its parent company, Brookfield Corp.

Strategic Rationale

The deal would give Brookfield full ownership of Oaktree, strengthening its leadership in credit, distressed assets, and alternative investments.
Oaktree, co-founded by Howard Marks, is widely regarded for its expertise in debt and private credit markets, complementing Brookfield’s strengths in infrastructure, real estate, and renewable assets.

By consolidating Oaktree, Brookfield aims to expand its global alternatives platform, boost recurring fee-based income, and enhance its reach in private debt markets — a segment seeing rapid institutional inflows amid high-rate environments.

Market Reaction and Broader Context

Shares of BAM traded higher following the report, with investors viewing the deal as a strategic move to enhance earnings visibility and credit diversification.

Brookfield originally acquired a majority 74% stake in Oaktree in 2019, marking one of the most significant mergers in alternative asset management history. The pending transaction would now complete that acquisition cycle.