Brookfield (BAM/BN) is set to deploy up to $8B in two vehicles: $3B for the remaining 26% stake in Oaktree and $5B in a strategic AI infra partnership with Bloom Energy.
The Oaktree deal adds ~$100M to fee-related earnings and brings additional scale to BAM’s leading private credit platform…
… but comes at a time when the strategy is as competitive as ever. Combined with management fee compression on the back of its push into insurance capital…
… it’s possible that Oaktree is timing its exit well.
The deal was when we bought the firm that we would — there was an opportunity for them, the partners to stay in and be owners with us. They also can put to us over time if they want to phase out of the business.
The Bloom deal is more interesting, given it’s BAM’s first investment in its dedicated AI infrastructure strategy - which should come with higher fees…
… and parlay nicely with its investments in power - where a recent $1B hydro deal and big tech framework agreements have made the firm’s strategy abundantly clear:
