Brookfield Asset Management Forms Strategic Partnership With Castlelake

Paul, Weiss is advising Brookfield Asset Management in its strategic partnership with Castlelake L.P., an alternative asset manager specializing in asset-based investments in the private specialty finance, real assets and aviation markets. Under the terms of the agreement, Brookfield will invest approximately $1.5 billion in Castlelake, including capital to be invested in Castlelake's investment strategies by Brookfield Reinsurance. As part of the deal, Brookfield will acquire a 51% stake in Castlelake's fee-related earnings. The partnership will allow Castlelake and Brookfield to collaborate and expand Castlelake's differentiated asset-based investment business.

Castlelake will continue to operate its business independently, retaining its current governance and leadership structure. The transaction is expected to close in the third quarter of 2024.

The Paul, Weiss team is led by M&A partners Ted Ackerman and Cullen Sinclair and counsel Erika Detjen, and private funds partners Marco Masotti and Bradley Brown, and includes private funds partners Lindsey Wiersma and Aaron Schlaphoff and counsel Andrew Day, Arik Hirschfeld and Marc Palumbo; finance partner Suhan Shim; corporate counsel Nathan Mitchell; tax partners Reuven Garrett and Scott Sontag and counsel Patrick Karsnitz; intellectual property partner Chuck Googe; executive compensation partner Lawrence Witdorchic and counsel Jake Glazeski; litigation partner Gregory Laufer and counsel Steven Herzog and Pietro Signoracci; real estate partner Salvatore Gogliormella; and environmental counsel William O'Brien.