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Brookfield Asset Management (NYSE:BAM, TSX:BAM) has officially announced the closing of a strategic partnership with Castlelake L.P., a leading global alternative investment manager known for its expertise in asset-based private credit, including aviation and specialty finance. Under the terms of the agreement, Brookfield has acquired a 51% stake in Castlelake’s fee-related earnings, while Brookfield Wealth Solutions commits to investing in Castlelake's various investment strategies and private funds.
In a joint statement, Castlelake co-founders Rory O'Neill and Evan Carruthers expressed their enthusiasm about the partnership, stating, “We’re thrilled to begin realizing our partnership with Brookfield and the incremental value that it will bring to our firm, clients, and employees. Castlelake and Brookfield are aligned in approach and values, and complement each other in expertise and experience.” They believe that being part of Brookfield will enhance Castlelake’s innovation and scale while maintaining the specialized focus that has characterized their firm for years.
Craig Noble, CEO of Brookfield Credit, echoed this sentiment, highlighting the partnership as a significant development for Brookfield. “We’re pleased to formally begin our strategic partnership with Castlelake and bring its asset-based investment capabilities into the Brookfield ecosystem,” he stated. Noble added that they are eager to work with Castlelake to address the increasing demand for compelling asset-based investment opportunities.
Founded in 2005, Castlelake is recognized as one of the longest-tenured investment firms specializing in asset-based investments. Over the past 19 years, the firm has executed approximately $39 billion in capital deployment across more than 1,300 global transactions. Currently, Castlelake manages around $24 billion in assets for a diverse range of over 200 institutional investors.
Importantly, Castlelake will continue to operate independently, retaining its existing governance and leadership structure. O'Neill will serve as Executive Chair, while Carruthers will remain the CEO and Chief Investment Officer, ensuring continuity and expertise in their operations. Additionally, Castlelake will maintain majority ownership of its performance-related earnings.
This strategic partnership between Brookfield and Castlelake marks a significant move in the alternative investment landscape, combining Brookfield’s extensive resources with Castlelake’s specialized knowledge. Together, they are poised to capitalize on the growing opportunities within the asset-based investment sector, further enhancing their capabilities to serve clients effectively.
