Brookfield Buys Stake in Private Debt Firm Castlelake’s Fees

  • Canadian firm will invest $1.5 billion in Castlelake
  • Deal adds to Brookfield’s stable of credit investments

Bruce Flatt, chief executive officer of Brookfield Asset Management

Photographer: Betty Laura Zapata/Bloomberg
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Brookfield Asset Management struck a partnership with Castlelake LP to get a majority share of the private debt firm’s fee-related earnings, another move in the Canadian investing giant’s effort to grow its credit business.

Brookfield Asset will invest about $1.5 billion, including money that the firm’s reinsurance arm will place in Castlelake’s strategies, the firms said in a statementBloomberg Terminal Monday. Castlelake will still operate independently and retains majority ownership of its earnings tied to performance.