Brookfield to acquire 62% of Oaktree Capital Management
On March 13, 2019, Oaktree Capital Management, L.P. announced that Brookfield Asset Management Inc. will acquire 62% of its business. The acquisition will provide global investors with one of the most comprehensive offerings of alternative investment products in the marketplace today. Under the agreement, Brookfield will acquire all outstanding Oaktree Class A units for either C$49.00 in cash or 1.0770 Class A shares of Brookfield per unit (subject to the election of the shareholders).
The Oaktree Board of Directors, acting on the recommendation of a special committee, composed of non-executive, independent directors, has unanimously recommended that Oaktree unitholders approve the transaction. The transaction is expected to close in the third quarter of 2019.
Oaktree is a leader among global investment managers specializing in alternative investments, with US$100 billion in assets under management as of September 30, 2017. The firm emphasizes a value-oriented and risk-controlled approach to investments in distressed debt, corporate debt, control investing, convertible securities, real estate and listed equities.
Brookfield Asset Management Inc. is a leading Canadian global alternative asset manager with over US$350 billion in assets under management. The firm invests in equity and fixed income markets across the globe, with a focus on real estate, renewable power, infrastructure and private equity.
McCarthy Tétrault LLP advised the special committee of the board of directors of Oaktree Capital Group, LLC, as Canadian counsel, with a team led by David Tennant that included Jeremy Pleasant.