Brookfield Asset Management has closed its acquisition of 61.2 percent of Oaktree Capital Group, a Los Angeles-based alternative investments manager. The cash-and-stock deal saw Brookfield buy all of the outstanding Oaktree class A units and about 20 percent of the units of Oaktree Capital Group Holdings (OCGH) held by founders, senior management, and current and former employees. Brookfield said cash payable to class A unit-holders and OCGH unit-holders is about US$2.4 billion. Reuters previously estimated the deal’s total value at about US$4.8 billion.
Brookfield Asset Management Completes Acquisition Of 61.2% of Oaktree Capital Management
NEW YORK, Sept. 30, 2019 (GLOBE NEWSWIRE) — Brookfield Asset Management Inc. (“Brookfield”) (NYSE: BAM, TSX: BAM.A) and Oaktree Capital Group, LLC (NYSE: OAK) (“Oaktree”) are pleased to announce the completion of Brookfield’s acquisition of approximately 61.2% of Oaktree’s business. In connection with the transaction, Brookfield acquired all of the outstanding Oaktree class A units and approximately 20% of the units of Oaktree Capital Group Holdings, L.P. (“OCGH”) held by the founders, senior management, and current and former employees of Oaktree. The purchase price per unit was, at the election of such unitholders, $49.00 in cash or 1.0770 class A shares of Brookfield (subject to proration). OCGH is the holder of all outstanding class B units of Oaktree as well as a direct interest in certain of Oaktree’s operating entities.
Oaktree class A unitholders’ and OCGH unitholders’ elections were made on a per unit basis and subject to proration such that the total consideration paid by Brookfield was 50% cash and 50% Brookfield class A shares. Based on the elections received, the share consideration was oversubscribed and former holders of class A units and participating OCGH units who elected (or were deemed to have elected) to receive share consideration with respect to all or a portion of their units will instead receive approximately 0.6173 class A shares of Brookfield and $20.92 in cash with respect to each such unit. The election results remain subject to the limitations and proration procedures described in the consent solicitation statement/ prospectus of Brookfield and Oaktree delivered to Oaktree unitholders in connection with the transaction.
The aggregate amount of cash payable to Oaktree class A unitholders and OCGH unitholders in the transaction is approximately $2.4 billion. Approximately 52.8 million class A shares of Brookfield were issued in the transaction. In connection with the closing of the transactions, Oaktree class A units were delisted from the New York Stock Exchange.
Brookfield Asset Management Inc. is a leading global alternative asset manager with over $385 billion in assets under management. The company has more than a 120-year history of owning and operating assets with a focus on real estate, renewable power, infrastructure and private equity. Brookfield offers a range of public and private investment products and services, and is co-listed on the New York and Toronto stock exchanges under the symbol BAM and BAM.A, respectively. For more information, please visit our website at brookfield.com.
Oaktree Capital Group, LLC is a leader among global investment managers specializing in alternative investments, with $120 billion in assets under management as of June 30, 2019. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 950 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at oaktreecapital.com.
For more information, please contact:
Brookfield Asset Management Inc.
Oaktree Capital Group, LLC
Andrea D. Williams
Communications and Investor Relations
Tel: (213) 830-6483