Oaktree Capital Raises $16 Billion for Opportunistic Credit Fund

(Bloomberg) -- Oaktree Capital Group LLC raised $16 billion for its largest-ever opportunistic credit fund, exceeding its target by $1 billion.

Oaktree Opportunities Fund XI has already committed around 70% of its cash to investments, the firm co-founded by Howard Marks said on Tuesday.

The new fund will make both public and private investments across geographies and sectors, including direct loans, investing in out-of-favor industries and pursuing market dislocations, according to Oaktree’s announcement. 

As immense liquidity provided to financial markets by central banks during the pandemic has shrunk the number of distressed corporate opportunities, investors have broadly sought out higher yields by providing private credit and other capital to companies with limited access to financing. 

Oaktree’s announcement Tuesday made particular note of the “compelling risk/reward profile” in private investments. 

Private debt firms have raised over $150 billion in 2021 and are on pace to set a record, according to data provider Preqin.

Los Angeles-based Oaktree was co-founded by partners including Marks and Bruce Karsh, Oaktree’s Co-Chairman and Chief Investment Officer. It sold a majority stake to Brookfield Asset Management in 2019. As of September, it had $158 billion of assets under management. 

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