NY State commits $500m to Oaktree distressed vehicle

The global asset manager’s fund closed on $8.4bn last November.

The New York public pension fund has made a $500 million commitment to Oaktree Capital Management’s latest distressed and special situations fund, according to a February report.

The New York State Common Retirement Fund signed the investment to the Oaktree Opportunities Fund Xb without a placement agent, the transaction report shows. The capital call will be paid in cash.

Oaktree, which has garnered commitments from CRF before, targets non-control investments in the distressed and special situations sectors with the fund, the report shows.

Fund Xb held its second close on $8.4 billion last November, filings with the US Securities and Exchange Commission showed. This surpassed the fund’s target of $7 billion, according to PDI data.

In the same month the fund closed, Fitch Ratings reported that the investment period for Oaktree Opportunities Fund Xb is expected to begin in the latter half of 2017.

Other sizable commitments to the Fund Xb include a $400 million from the Washington State Investment Board as well as $200 million each from the Teacher Retirement System of Texas and $200 million from the Florida State Board of Administration.

Oaktree officially launched the distressed vehicle in September 2014, split between $3 billion ready to deploy immediately in Fund X and $7 billion on standby in Fund Xb, PDI data shows. Like its sister vehicle, Fund X surpassed its target and closed on $3.21 billion.

The New York State Common Retirement Fund is the third largest pension fund in the US, Reuters reported last December.

The pension plan with $178.6 billion in assets under management as of March 2016, the latest data available, according to an investment report.