BAM and OAK

[rayray]

Well, I've never invested in any of the Brookfield  divisions but admired them for a few years now. Looks like I can become a shareholder through their acquisition of Oaktree Capital (OAK). Oaktree Capital issues a K-1 and I believe BAM does not? I know the other divisions of Brookfield are unit holders that issue K-1's--However I'm a little confised by their press release that states OAK unit holders can receive cash or 1.077 shares of Class A of Brookfield...on nyse traded as BAM on TSX it's traded as BAM.A....I'm assuming being in the United States and not Canada I'll be issued BAM and not BAM.A that they're one and the same as in Class A--I just thought to be a little confusing with ticker symbols.

All the info I have is just the press release:

https://bam.brookfield.com/press-release...-132118887

Any input would be great? Any OAK or BAM unit-holders/shareholders on board?

[crimsonghost747]

I've looked at BAM for a while.
But it's a pretty complicated company and at least for me it was kinda hard to figure out how the whole thing works. On top of that, I have a feeling they won't be doing too well in case the economy slows down. As I understand it they are very much dependent on the fees they get which are based on the amount of capital invested through them.

I'll keep my eyes on them but I'm not buying at the moment.

I do own BIP but that's another story.

[Roadmap2Retire]

BAM and its subsidiaries are one of the best capital allocators in the market. Definitely worth digging into for long term investment.

Was looking at buying OAK a few months ago, but didnt pull the trigger. The transaction is structured pretty well to be beneficial for both OAK shareholders now (retirement & transition plan for Howard Marks & Bruce Karsh) and long term accretion in BAM's books.

I own BAM and BIP.

[Roadmap2Retire]

To give you an example of how BAM's mindset & approach to its investments, see this from the Q3 2017 call. Following quote from Bruce Flatt.

[rayray]

Alright, thank you guys...good to see you around R2R!!

I'm going to go ahead and let OAK turn into BAM and not take the cash, only the shares.

I'll have enough to deal with after the CELG and BMY acquisition goes through, I won't have a choice in this one being a CELG shareholder.