Alternative investment giant Brookfield Asset Management is in advanced talks with Castlelake over the acquisition of a majority stake in the $22bn private credit manager, a specialist in aircraft leasing, according to a report by the Financial Times.
The report cites three unnamed people briefed on the matter as revealing that the proposed deal would see Brookfield invest more than $1.5bn to buy a majority interest in Castlelake and also make a large investment in its funds.
Castlelake provides financing for several large airlines, including United Airlines and Turkish Airlines, that is secured against their planes. If a deal is agreed, the company would sit in Brookfield’s recently formed credit unit, which also holds a controlling interest in Oaktree Capital Management.
The talks between Brookfield and Castlelake, which are reportedly at a late stage but could still fail to progress, are part of a wider trend that has seen several large private equity and asset management groups — including TPG, BlackRock, T Rowe Price and CVC Capital Partners — acquire credit managers as they look to diversify their assets.
