Brookfield Asset Management Inc. (BAM) is making waves in the business world with a series of strategic moves. On Tuesday, the company announced the closure of a $1.5 billion partnership with Castlelake L.P., a significant investment firm. The deal sees Brookfield acquiring a 51% stake in Castlelake’s fee-related earnings, while Brookfield Wealth Solutions commits to investing in Castlelake’s investment strategies and private funds.
This partnership is a strategic move for both companies. Castlelake will continue to operate independently, maintaining its current leadership and governance structure, with Rory O’Neill as Executive Chair and Evan Carruthers as CEO and CIO. The firm will also retain majority ownership of its performance-related earnings.
“Castlelake and Brookfield are aligned in approach and values and complement each other in expertise and experience,” said co-founders of Castlelake, Rory O’Neill and Evan Carruthers in a joint statement. “We believe that being a part of Brookfield will help accelerate Castlelake’s innovation and scale our platform while preserving the expertise and focused approach that has made our firm unique for so many years.”
Craig Noble, CEO of Brookfield Credit, expressed enthusiasm about the partnership, stating, “We look forward to working with Castlelake to meet the growing demand for compelling, asset-based opportunities and to supporting the firm’s continued growth.”
Beyond this strategic partnership, Brookfield is also reportedly exploring the sale of a luxury retail property on New York’s Fifth Avenue. According to Bloomberg, the company is seeking a price in the low- to mid-$300 million range. The landlord, Brookfield, has hired broker Eastdil Secured to handle negotiations for the retail portion of 685 Fifth Avenue, currently occupied by Coach, Stuart Weitzman, and DJI Hasselblad.
Earlier this month, Brookfield Asset Management demonstrated its commitment to sustainability by partnering with Infinium to invest up to $1.1 billion in boosting eFuels production, including sustainable aviation fuel. This investment highlights Brookfield’s commitment to supporting the development of green technologies and reducing the environmental impact of the aviation industry.
BAM shares were up 0.07% at $45.25 at the last check on Tuesday.
