Oaktree acquisition provides countercyclical balance
Brookfield's acquisition of Oaktree Capital Management strategically positioned the firm to capitalize on market downturns through opportunistic credit.
The argument
The speaker explained that Oaktree was identified as an undervalued, countercyclical business that excels when markets decline. Partnering with Oaktree allowed Brookfield to gain market-leading exposure to opportunistic and performing credit, which was highly active and successful during market disruptions like the COVID-19 pandemic.
The thesis, stress-tested
✓ What validates it
- ✓Step-change growth in Oaktree's assets under management during credit market dislocations
▸ Risks discussed
- ▸Extended periods of strong, upward-trending public markets can plateau opportunistic credit growth
Hear it yourself
"And I remember in beginning of twenty eighteen, we felt Oaktree was this amazing business that wasn't fully appreciated, in the public markets because it was very countercyclical."
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