May 6 (Reuters) - Canada's Brookfield Asset Management ( BAM )

will invest about $1.5 billion in private credit

manager Castlelake, the companies said in a joint statement on

Monday.

As part of the deal, Brookfield will also acquire a 51%

stake in Castlelake's fee-related earnings (FRE). The private

credit manager will continue to operate its business

independently, retaining its current governance and leadership

structure.

The deal comes as 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.

FRE is a performance measure used to assess an asset

manager's ability to generate profits from revenues that are

measured and received on a recurring basis. It includes

management and advisory fees.

Castlelake is an alternative asset manager specializing in

asset-based private credit, including aviation and speciality

finance.