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Brookfield Asset Management BAM-T is in advanced talks to acquire a majority stake in private credit manager Castlelake with an investment of more than $1.5-billion, the Financial Times reported on Thursday.

The deal would also see Brookfield make a large investment in Castlelake’s funds, the report said, adding that talks between the companies are in the late stage and could still fall apart.

Castlelake did not immediately respond to a Reuters request for comment, while Brookfield declined to comment on the FT report.

The deal comes at a time when the private capital groups have been struggling to raise funds, and investors in private equity funds are choosing to concentrate their investments with fewer, larger managers.

Castlelake, an alternative investment firm, has about $22-billion in assets under management and invests in sectors such as specialty finance and aviation, according to the company website.

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