Brookfield is buying Oaktree and it could create 'a more formidable competitor' to Blackstone in the asset management industry

One of the world's biggest investment firms, Brookfield Asset Management, announced a record deal to buy a majority stake in, and eventually take over, Howard Marks' Oaktree Capital Group."It would be a much more formidable competitor" to Blackstone, one analyst said.On Tuesday, Toronto-based Brookfield Asset Management said it would buy a 62% stake in Los Angeles-based Oaktree Capital Group, the alternatives manager founded by Howard Marks.

"It's one of those deals that doesn't come along that often," Patrick Davitt, a research analyst at Autonomous Research, told Business Insider."It would be a much more formidable entity with a much better developed credit arm and start to look a lot more like Blackstone. From the standpoint of becoming a one-stop shop for limited partners, they're probably going to be close to the second-best gig in town next to Blackstone.

"It makes sense for two niche firms like that to expand on their operations, to combine their businesses to have stronger footing in the alternative asset management business," Tayfun Icten, a Morningstar analyst, said in an interview."Your assets get into an elevator and go home every night - the people," Icten said."Cultural fit is crucial in situations like this. It'll never be perfect. It can work but it's a painful process to mesh two teams together.

"Brookfield has a lot more capital to help Oaktree grow to the extent it wants to, which is something it didn't have before," he said.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

California bill to create state-chartered public banks criticized by the industry as 'misguided'Two California lawmakers proposed legislation this week that would allow municipalities to create their own local or regional banks, calling it way 'to fight income inequality through public banking.' Misguided Democrats? That's surprising. California Bill. Cant wait till california implodes
Source: CNBC - 🏆 12. / 72 Read more »

Cramer Remix: The market's freak-out creates a fabulous buying opportunity in FunkoJim Cramer breaks down why Funko's stock is a steal at these levels. jimcramer ❤️ $alt
Source: CNBC - 🏆 12. / 72 Read more »

Why It’s So Hard to Buy the Market at the Bottom and Hang OnThis week is exactly 10 years since the vomit-inducing moment when the S&P 500 hit an intraday low of 666 (rounding down) and investors thought a repeat of the Great Depression was on the way. jmackin2 I did buy at the bottom. Only wish I had bought even more. jmackin2 The ancient proverb that a 'tree cannot grow to heaven unless its roots reach down to hell' applies. You shouldn't expect double-digit returns over a lengthy period without substantial paper losses at some interval along the way. This is the premise and promise of investing. jmackin2 ...It crashes at the top...look around...
Source: WSJ - 🏆 98. / 63 Read more »

A 257-year-old asset manager profited from Ariana Grande's hit single '7 rings,' and it's a business Wall Street's getting excited aboutMusic licensing has become a more popular target for private equity seeking dependable revenue. You have become click bait
Source: BusinessInsider - 🏆 729. / 51 Read more »