Brookfield will acquire the remaining 26% stake in Oaktree Capital Management for approximately $3bn, taking full ownership of the Los Angeles-based credit and distressed-debt investor and cementing its position as a major force in alternative credit, according to Bloomberg.

The deal, which values Oaktree at about $11.5bn, is expected to close early next year and will add to Brookfield’s earnings. The firm first acquired a majority stake in Oaktree six years ago, helping to accelerate the expansion of its credit business, now one of its fastest-growing divisions.

“With this closer alignment, Oaktree will remain central to Brookfield’s credit strategy, and we see significant opportunities to grow the franchise and expand what we can offer our clients together,” said Oaktree co-founder Howard Marks.

Bruce Flatt, Chief Executive Officer of Brookfield, added: “Taking this next step will allow us to broaden our credit franchise, enhance collaboration across our businesses, and strengthen our ability to continue delivering long-term value for our investors.”

As part of the integration, Oaktree’s co-CEOs, Robert O’Leary and Armen Panossian, will become co-CEOs of Brookfield’s global credit business. Marks will remain on Brookfield Corp.’s board, while Oaktree co-founder Bruce Karsh will join the board of Brookfield Asset Management.

The deal implies a significant uplift in value for Oaktree, whose assets under management have grown by 75% since Brookfield’s initial investment. The transaction follows a wave of consolidation among alternative asset managers, including BlackRock’s $12.5bn acquisition of Global Infrastructure Partners and its $12bn deal for HPS Investment Partners.

Following completion, the U.S. will become Brookfield’s largest market, accounting for more than half of its $550bn in assets and revenues.

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