Oaktree moves towards close on $10bn distressed fund

The Los Angeles-headquartered alternative investment firm is said to be close to its $10 billion distressed fundraising target. 

Oaktree Capital Management has reportedly collected more than half of the capital of its planned $10 billion goal for the Oaktree Opportunities Fund X and plans to close it to new money next month. Bloomberg reported on Friday (10 April) that the firm has collected $7 billion so far and The Wall Street Journal wrote on the same day that Oaktree is aiming for a final close on 12 May at $10 to $11 billion. An Oaktree spokeswoman declined to comment.

As PDI previously reported, Oaktree is raising money for two separate pools: a $3 billion pool of capital to be deployed immediately and a separate $7 billion reserve pool to be invested at a later date when more distressed opportunities come to market. Oaktree has offered to waive management fees on the capital until it is invested.

Limited partners in the tenth fund include the Teacher Retirement System of Texas, the Minnesota State Board of Investment, the Houston Municipal Employees Pension System, the Oklahoma Police Pension & Retirement System, the Washington State Investment Board and the Kentucky Teachers Retirement System, among others.

Oaktree’s last distressed fund, the Oaktree Opportunities Fund IX raised $5 billion in 2013. The Los Angeles-headquartered firm had $90.8 billion in assets under management as of the end of last year in a variety of private debt, private equity and real estate funds, as well as public equity and fixed income.