Brookfield said to be weighing private credit firm stake

Brookfield said to be weighing private credit firm stake
Asset manager is reportedly in talks with Castlelake.
APR 12, 2024

Brookfield Asset Management is in advanced talks to buy a majority stake in private-credit manager Castlelake, according to people with knowledge of the matter.

The potential deal would see Brookfield invest more than $1.5 billion in the Minneapolis-based firm, which manages around $22 billion, said the people, who asked not to be identified because they’re not authorized to speak publicly. The talks are advanced but could still fall apart, they said.

As part of the deal, Brookfield would be entitled to receive 51% of fee-related earnings and a much smaller share of carried interest, according to one of the people.

Representatives for Brookfield and Castlelake declined to comment.

The Financial Times first reported that Brookfield was in advanced talks over a deal. Bloomberg News reported in November that Castlelake was exploring options, including a sale.

Founded in 2005 by co-chief executives Rory O’Neill and Evan Carruthers, Castlelake focuses on real assets, specialty finance, and aircraft investin,g and manages capital on behalf of about 200 institutions including endowments, pension plans, family offices, insurance companies, and sovereign wealth funds, its website shows.

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