Oaktree Capital Aims to Raise Over $18B for Latest Distressed Fund

Oaktree Capital Management, the $179 billion alternative asset manager, is reportedly targeting over $18 billion for its latest distressed fund.

The Oaktree Opportunities Fund XII is expected to be the largest private credit fund on record, according to a report from Bloomberg. The fundraise would easily eclipse the firm’s predecessor fund, which raised more than $16 billion in 2021.

Opportunistic credit has been a core investment focus for Oaktree since its inception, when the firm was a pioneer in distressed debt investing. In 2020, the historic raise for the latest vehicle began for the predecessor fund that was raised during the height of the COVID-19 pandemic.

The strategy’s mandate now includes more geographies and looks very different than it did nearly 30 years ago.

In June, the firm announced a leadership transition with the promotions of Robert O’Leary, portfolio manager for the Global Opportunities strategy, and Armen Panossian, head of performing credit, to co-CEOs. They will succeed Jay Wintrob, who will step down as Oaktree’s CEO at the same time.