Texas Teachers commit to Oaktree’s latest distressed fund

 The pension fund is investing $300 million in Oaktree Opportunities Fund X, a distressed debt fund with an overall target of $10 billion.  

The $132 billion Teacher Retirement System of Texas pledged $100 million to Oaktree’s Opportunity Fund X and $200 million to Opportunity Fund Xb on 20 February, according to investment documents recently released by the retirement plan. Oaktree Capital Management is raising $10 billion total for the strategy, of which $3 billion will go into a pool to be deployed immediately with the balance going to a “reserve pool” to be deployed at a later date as opportunities arise.

The firm said on its earnings call last month that it was approaching a first close for the vehicle. The Minnesota State Retirement System also recently invested $100 million in the vehicle. Other US pension investors include the Houston Municipal Employees Retirement Fund, Oklahoma Police Pension & Retirement System, the Nashville & Davidson County (Tennessee) Metropolitan Government Employee Benefit Trust Fund, the Kentucky Teachers’ Retirement System and the Washington State Investment Board. 

For Texas Teachers, other recently disclosed investments included a $250 million commitment to the TPG Growth III fund on 12 February, as well as a $150 million investment in the Baring Asia Private Equity VI fund and $250 million investment in the Ridgewood Energy Oil & Gas Fund III on 27 February.