Brookfield to Buy 62% of Oaktree Capital Management

(Bloomberg) -- Brookfield Asset Management will acquire about 62% of Oaktree Capital Management, and Brookfield could own 100% of the Oaktree business the earliest in 2029 based on liquidity schedule.

• Companies say they will continue to operate their businesses separately
• Oaktree Class A unitholders can elect to receive for each Oaktree Class A unit either $49 in cash or 1.0770 Brookfield Class A shares
  • Represents a premium of 12.4% per Oaktree Class A unit, based on the closing price of Oaktree Class A units and Brookfield Class A Shares on March 12
• Howard Marks and Bruce Karsh will continue to have operating control of Oaktree
  • Howard Marks will continue as Co-Chairman of Oaktree, Bruce Karsh as Co‑Chairman and Chief Investment Officer, and Jay Wintrob as CEO
  • Howard Marks will join Brookfield’s board
• The two companies together will have about $475 billion of assets under management and $2.5 billion of annual fee-related revenues
• The founders, senior management, and current employee-unitholders of Oaktree , the holders of Class B units as well as a direct interest in certain of Oaktree’s operating entities, will sell to Brookfield 20% of their units for the same consideration as the Oaktree Class A unitholders
• Deal includes a $225 million termination fee by Oaktree

To contact the reporter on this story: Yueqi Yang in New York at yyang492@bloomberg.net

To contact the editor responsible for this story: Chakradhar Adusumilli at cadusumilli@bloomberg.net

©2019 Bloomberg L.P.