On May 6, 2024, Brookfield Asset Management (NYSE: BAM, TSX: BAM) acquired a 51% stake in Castlelake L.P.’s fee-related earnings for approximately $1.5 billion USD (around $2 billion CAD at the time). The transaction, which included capital investment by Brookfield Reinsurance, was aimed at expanding Castlelake’s asset-based private credit business. Brookfield’s CEO of Credit, Craig Noble, highlighted the significant growth potential in Castlelake’s private credit strategies and the broader asset class.

Founded in 2005 by Rory O’Neill and Evan Carruthers, Castlelake managed around $22 billion in assets across 1,300 global transactions. O’Neill and Carruthers emphasized Brookfield’s alignment with Castlelake’s values and approach, predicting enhanced innovation and growth for Castlelake.

Castlelake continued its operations independently, maintaining its governance and leadership structure, with Carruthers as CEO and CIO, and O’Neill as Executive Chair. Castlelake retained majority ownership of its performance-related earnings. The deal was expected to close in Q3 2024.

Evercore was Brookfield’s financial advisor, with Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel. Goldman Sachs & Co. LLC and Colchester Partners advised Castlelake, while Kirkland & Ellis LLP provided legal counsel.