Oaktree back in the market with 11th Opportunities Fund

Among its investors, a US pension fund plans to allocate $300m to Oaktree Opportunities Fund XI, the latest in the distressed debt fund series.

Oaktree Capital Management is kicking off fundraising for Oaktree Opportunities Fund XI. Three regulatory filings show the Los Angeles-headquartered investment firm planned to launch three separate vehicles as of 20 May: the main fund, a parallel vehicle and a feeder fund.

Among its existing investors, Minnesota State Board of Investment, a St Paul-based US pension, has disclosed a planned commitment of $300 million to Oaktree Opportunities Fund XI, according to a disclosure from its board meeting on 29 May.

Like any other private investment commitment made by the pension, it is subject to a maximum amount of $300 million or 20 percent of the fund’s total size – whichever is less – and must be made alongside at least four other participating investors. The final commitment size is subject to negotiations between the firm and the pension fund administrator.

Oaktree Opportunities Fund XI is the firm’s 11th closed-end opportunistic private credit fund. Its earlier vehicle, Oaktree Opportunities Fund X, held a final close on $3.6 billion in 2016, and Fund Xb closed on about $8.9 billion in 2017, according to Private Debt Investor data.

Minnesota State Board of Investment previously committed a total of $250 million across the Oaktree Opportunities Fund X and Oaktree Opportunities Fund Xb series, PDI data show. Fund X was launched in 2014, according to regulatory filings in November 2015.

Oaktree is not alone in marketing opportunistic credit investments. As PDI reported last month, another global alternative investment firm, Apollo Global Management, finalised fundraising for its latest opportunistic credit investment vehicle, Accord Fund III B, on $1.75 billion. Notably, it took only about eight weeks for Apollo to close the vehicle.

Last year, Brookfield Asset Management, a Toronto-headquartered investment firm, acquired a majority interest in Oaktree. Brookfield and Oaktree collectively managed more than $515 billion of assets as of the end of March.

Our requests for comment from Oaktree and Brookfield had not been returned at the time of publication.