Brookfield Acquires Majority Stake in Angel Oak
New York, Tuesday, 1 April 2025.
Brookfield Asset Management has acquired a majority stake in Angel Oak, enhancing its asset management portfolio and highlighting industry consolidation as companies seek to optimize operations.
Strategic Growth and Market Position
The acquisition, announced on April 1, 2025, will integrate Angel Oak into Brookfield’s substantial $317 billion credit business [1]. Angel Oak, founded in 2008, brings more than $18 billion in assets under management to the partnership, with specialized expertise in U.S. non-agency residential mortgages [1]. This strategic move aligns with Brookfield’s broader growth trajectory, as the company aims to expand its total Assets Under Management (AUM) to $2 trillion by 2030 [7].
Operational Structure and Leadership
Under the agreement, Angel Oak will maintain operational independence while benefiting from Brookfield’s extensive resources. Co-founders Sreeni Prabhu and Mike Fierman will continue their roles as co-Chief Executives [1]. The firm’s integration combines Angel Oak’s leading wholesale mortgage originator, Angel Oak Mortgage Solutions, with its asset management arm, Angel Oak Capital Advisors [1]. This structure preserves Angel Oak’s established operational model while leveraging Brookfield’s institutional capabilities [1][2].
Market Impact and Future Outlook
The transaction strengthens Brookfield’s position in the alternative investment sector, where the company currently manages approximately $1 trillion in AUM [7]. This acquisition is particularly strategic given the increasing allocation to alternative investments by institutional investors, with state and local government pension funds having increased their alternative investment allocation from 9% in 2001 to 34% in 2022 [7]. While the financial terms of the deal remain undisclosed [1], the partnership is expected to enhance Brookfield’s credit offerings and expand its market presence [2].