Oaktree Capital Management secured capital commitments totaling $16B at the final close of its latest distressed debt fund, including co-investment and affiliated vehicles.
Oaktree Opportunities Fund XII opened for subscription in February 2023 and as of February 2024 had secured $3.45B in capital commitments from 76 investors, an amended filing with the SEC showed. According to Dakota data, the Virginia Retirement System and the Connecticut Retirement Plans and Trust Funds are among the public pensions investing in the fund.
The asset manager marketed the fund across the US with the help of Oppenheimer & Co., Merrill Lynch, and Morgan Stanley. Outside the country, HMC ITJ, the Cayman branch of Banco BTG Pactual, Akela Capital, UBS, Singular Asset Management Administradora General de Fondos, Kyobo Securities, Nomura Securities, Spire Capital, and Kiatnakin Phatra Securities promoted Fund XII. Oaktree allocated an estimated $6.9M to commissions for the fundraise.
Fund XII is part of Oaktree's global opportunities strategy, falling under the opportunistic credit platform that primarily focuses on opportunistic liquid credits, rescue financings, debtor-in-possession financings, exit financings, loan portfolios, platforms, and opportunistic capital solutions. Previously called distressed debt, the platform allows Oaktree to lend money to cash-strapped companies, including those facing defaults.
The fund aims to deliver attractive risk-adjusted-returns by capitalizing on public and private opportunities. So far, it has deployed more than $7B to a group of companies from various geographies, sectors and asset classes. Under its credit strategy, Oaktree manages $143B of assets, according to its website.
