An employee counts and bundles U.S. dollar banknotes (Photographer: Brent Lewin/Bloomberg)

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

©2019 Bloomberg L.P.