The Federal Energy Regulatory Commission conditionally authorized Brookfield Asset Management Inc.'s acquisition of about 62% of Oaktree Capital Group LLC. The deal closed Sept. 30.
The commission said in the order that it must be informed within 30 days of any material changes in any of the circumstances that surround the transaction. Moreover, the applicants must inform the commission within 10 days of the consummation of the transaction.
Oaktree, a hedge fund manager, owns Highstar Capital GP IV, which through affiliates, holds 87.5% of class A voting units of the 674-MW Salem Harbor Station, a natural gas-fired, combined-cycle power generation facility in Salem, Mass. It also indirectly owns about 62.5% of the limited liability company interest in Star West Generation LLC, which owns and operates the 570-MW Griffith Generating Station in Mohave County, Ariz.
Funds managed and controlled by Highstar Capital own 14% of Cogen Technologies Linden Venture LP and East Coast Power Linden Holding LLC, which own the 974.1-MW Linden Cogeneration facility in Linden, N.J. Affiliates of Oaktree own about 61% of the outstanding voting shares of Hartree Partners LP, a merchant energy and commodities firm in New York City.
Under the proposed transaction and as a simplifying assumption, the market power analysis set forth in the FERC application assumes that Brookfield will indirectly become the holding company for the energy entities.
The energy entities are expected to retain day-to-day management and operational control of their jurisdictional facilities. (FERC docket EC19-104)
