Brookfield to Take Full Control of Oaktree Capital in $3bn Deal, Strengthening Its Credit Powerhouse

Brookfield announced on Monday that it will acquire the remaining 26% stake in U.S.-based Oaktree Capital Management for about $3 billion, cementing full ownership of one of the world’s leading credit and distressed debt investors.

The deal marks a major step in Brookfield’s ongoing effort to expand its footprint in private credit and alternative investments — a space increasingly dominated by global heavyweights like Blackstone and Apollo Global Management.

Under the terms of the agreement, New York-based Brookfield Asset Management (BAM.TO) and its parent company, Brookfield Corporation, will fund roughly $1.6 billion and $1.4 billion of the purchase price, respectively. Once completed, Brookfield will own 100% of Oaktree, which it first acquired a majority stake in for $5 billion in 2019.

The move will make the United States Brookfield Asset Management’s largest market, with $550 billion in assets under management (AUM), employing more than half of its global workforce and generating about 50% of its total revenue. The deal, expected to close in the first quarter of 2026, positions Brookfield as one of the most diversified alternative asset managers in the world — with deep reach across credit, infrastructure, real estate, renewables, and private equity.

Founded in 1995 by Howard Marks and Bruce Karsh, Oaktree Capital has built a global reputation for expertise in distressed debt and opportunistic credit investing. The Los Angeles-based firm manages about $209 billion in assets as of June 30, 2025, making it one of the largest credit managers in the world.

Brookfield’s decision to acquire Oaktree outright is part of its strategic bet on the private credit market, which has surged in popularity as rising interest rates push companies to seek flexible financing outside traditional banks. The acquisition also strengthens Brookfield’s wealth and asset management capabilities, enabling it to offer investors more comprehensive access to public and private credit strategies.

“Oaktree will remain central to Brookfield’s credit strategy, and we see significant opportunities to grow the franchise and expand what we can offer our clients together,” said Oaktree’s co-chairman, Howard Marks, in a statement.

Marks, who is one of the most respected figures in global investing, will continue to serve on Brookfield’s board following the transaction.

Oaktree’s chief investment officer, Bruce Karsh, will also join the board of Brookfield Asset Management, while Oaktree’s co-CEOs, Robert O’Leary and Armen Panossian, will become co-CEOs of Brookfield’s entire credit business.

By consolidating Oaktree’s operations, Brookfield aims to streamline its credit investment platform, which has already been a major profit driver. Including Oaktree’s contribution, Brookfield Asset Management generated about $2.8 billion in fee-related earnings over the last twelve months, the firm said.

When Brookfield first acquired its majority stake in Oaktree in 2019, the deal was seen as a landmark combination between two giants in alternative asset management — marrying Brookfield’s strength in real assets with Oaktree’s expertise in credit and distressed opportunities. Since then, the partnership has allowed both firms to scale their product offerings globally, targeting institutional and high-net-worth investors seeking stable returns amid volatile equity markets.

Brookfield CEO Bruce Flatt has long emphasized the firm’s ambitions to rival Blackstone and Apollo in the alternatives space. With full control of Oaktree, Brookfield is now better positioned to compete directly with those firms in the fast-growing $1.7 trillion private credit market — an area that has become one of Wall Street’s most lucrative profit engines.

For Oaktree, the full buyout by Brookfield is also the culmination of a long-running partnership that has steadily integrated its teams, platforms, and client networks. The firm is expected to retain its brand identity and continue to operate independently under the Brookfield umbrella, much as it has since 2019.

It is believed that the timing of the deal aligns with a broader trend of consolidation among alternative asset managers, as firms seek scale and diversification in an increasingly competitive environment. The combination of Brookfield’s global infrastructure and Oaktree’s credit expertise gives the merged entity an advantage in capturing institutional capital flows at a time when investors are searching for higher yields and downside protection.

With this deal, Brookfield’s credit platform — already one of the largest globally — will gain even greater scope and influence. The company now expects its credit operations to become one of its biggest growth engines over the next decade, helping it attract institutional mandates and further entrench its position among the world’s top-tier asset managers.

The acquisition marks another major consolidation milestone in the financial industry, uniting two of the most respected names in asset management and reshaping the competitive dynamics of the global alternatives market.