Marks, Bruce Karsh and other partners founded Los Angeles-based Oaktree in 1995. The firm managed $120 billion in distressed debt, private equity holdings, real estate, infrastructure and other equity assets as of Dec. 31. It has returned 78 percent since its initial public offering.
“We could see more M&A across the sector as aging founders of alternative managers seek a liquidity event and money managers bolster capabilities in alternatives,” Morgan Stanley analysts led by Michael Cyprys said in a note to clients. “This could increase investor perception of strategic value across the sector.”
KKR & Co. rose 1.8 percent, Carlyle Group LP gained 2.6 percent and Ares Management Corp. added 1.7 percent.
Under the terms of the deal, Brookfield could take over full ownership of Oaktree by 2029. The companies will continue to operate independently, with each keeping its brand and led by existing management. Marks, 72, will join Brookfield’s board.
Perella Weinberg Partners was the sole financial adviser and Simpson Thacher & Bartlett and Munger, Tolles & Olsen were legal advisers to Oaktree. Weil, Gotshal & Manges and Torys represented Brookfield.
This article was provided by Bloomberg News.