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Dearth of deals leads Oaktree to cut fund size: Seeking Alpha Jun 11 2014, 15:52 ET | About: Oaktree Capital Group (OAK)
Struggling to find deals for its latest distressed-debt investment fund, Oaktree Capital (OAK -1.3%) has cut its $3B asset-raising target all the way to about $1.8B, reports Bloomberg. The firm also plans to shorten the investment period to 3 years from 5. Given the lack of traditional distressed opportunities, Oaktree is spending more time on European nonperforming loans, shipping, commercial real estate, and energy, says Ronald Beck, a managing director at the firm. "You have to be very sector specific." "Financing is readily available and there's little corporate distress," lamented the firm's John Frank a few months back, adding Oaktree is more likely a seller than buyer in the current environment.
Oaktree Capital Group LLC (OAK), the world’s biggest distressed-debt investor, cut the $3 billion goal on its next control investing fund by about 40 percent as it struggles to find deals amid an economic recovery, according to three people with knowledge of the matter. Given the lack of traditional distressed opportunities, Oaktree is spending more time on European nonperforming loans, shipping, commercial real estate and energy, said Ronald Beck, a managing director at the firm, on a panel at the SuperReturn U.S. conference in Boston this week. He pointed to anemic default rates and high-yield bonds trading above par. http://mobile.bloomberg.com/news/2014-06-11/oaktree-said-to-cut-fund-as-distressed-deals-diminish.html
Thanks for all those great links. I read a good number of them and no doubt I'll miss them going forward should you carry through with your departure. Nobody can replace the link master.
Comments
Jun 11 2014, 15:52 ET | About: Oaktree Capital Group (OAK)
Struggling to find deals for its latest distressed-debt investment fund, Oaktree Capital (OAK -1.3%) has cut its $3B asset-raising target all the way to about $1.8B, reports Bloomberg. The firm also plans to shorten the investment period to 3 years from 5.
Given the lack of traditional distressed opportunities, Oaktree is spending more time on European nonperforming loans, shipping, commercial real estate, and energy, says Ronald Beck, a managing director at the firm. "You have to be very sector specific."
"Financing is readily available and there's little corporate distress," lamented the firm's John Frank a few months back, adding Oaktree is more likely a seller than buyer in the current environment.
Oaktree Capital Group LLC (OAK), the world’s biggest distressed-debt investor, cut the $3 billion goal on its next control investing fund by about 40 percent as it struggles to find deals amid an economic recovery, according to three people with knowledge of the matter.
Given the lack of traditional distressed opportunities, Oaktree is spending more time on European nonperforming loans, shipping, commercial real estate and energy, said Ronald Beck, a managing director at the firm, on a panel at the SuperReturn U.S. conference in Boston this week. He pointed to anemic default rates and high-yield bonds trading above par.
http://mobile.bloomberg.com/news/2014-06-11/oaktree-said-to-cut-fund-as-distressed-deals-diminish.html
Regards,
Ted
I hope I'm not interpreting this correctly.
You're not thinking of leaving MFO are you?
Say it ain't so.........
Thanks for all those great links. I read a good number of them and no doubt I'll miss them going forward should you carry through with your departure. Nobody can replace the link master.
Best wishes,
Old_Skeet