- What Oaktree looking to raise $15bn for new debt fund
- Why Leveraged businesses are being hit hard by the pandemic
- What next Large debt piles could be firewood’ for coronavirus to set alight
Oaktree Capital Group is looking to raise €15bn for the biggest ever distressed-debt fund, as it looks to capitalise on coronavirus-induced opportunities in struggling companies.
Bloomberg reported the Oaktree Opportunities Fund XI, which will buy up debt in troubled businesses and push for restructurings, will be the largest ever vehicle focused on the distressed-debt market.
The fund is almost the size of the $19.4 billion Oaktree already allocates to distressed-debt investing.
Howard Marks’ investment firm believes many firms increased gearing leading up to the outbreak of coronavirus by taking on large amounts of debt creating ‘firewood’ for the pandemic to set alight.
Oaktree clients will be asked to invest at least $10m for ten years in the new fund, the presentation noted.
Other private equity firms are also targeting the debt market in the coronavirus’s wake.
PIMCO is raising $3bn for its biggest ever distressed-debt vehicle and Cerberus is aiming to quadruple its new fund of the same strategy to $750m.