Brookfield Asset Management, a global alternative asset manager with over $900bn of assets under management, has agreed to invest $1.5bn to acquire a 51% stake in asset-based private credit specialist Castlelake’s fee-related earnings.
The investment includes capital to be invested in Castlelake’s investment strategies by Brookfield Reinsurance, and according to a statement, will allow the firm’s to expand Castlelake’s differentiated asset-based investment business, which includes aviation and specialty finance.
Castlelake will continue to operate its business independently, retaining its current governance and leadership structure, including Carruthers as Chief Executive Officer and Chief Investment Officer, and O’Neill as Executive Chair. It will retain majority ownership of its performance-related earnings. The transaction is expected to close in Q3 2024.
Castlelake was founded in 2005 by Rory O’Neill and Evan Carruthers and is one of the longest-tenured investment firms focused on asset-based investments. The firm manages approximately $22bn of assets for around 200 institutional investors.
Brookfield was advised by Evercore and Paul, Weiss, Rifkind, Wharton & Garrison. Castlelake was advised by Goldman Sachs & Co, Colchester Partners and Kirkland & Ellis.
