Oaktree sails past $15bn Fund XI goal to close biggest-ever debt vehicle

Oaktree Capital has raised $15.9bn to close the biggest fund in its history, beating its original $15bn target.

The firm has already commmited about 70% of Oaktree Opportunities Fund XI, which targets credit deals across public and private businesses.

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Oaktree previously raised about $12.5bn across its Fund X strategy, which was split into a $3.6bn Fund Xa and $8.9bn ‘reserve capital pool’ Fund Xb.

Thye firm said, “Today, private opportunities offer a compelling risk/reward profile, and the fund has invested in these in several attractive ways, including: providing capital solutions, negotiated on an exclusive basis, to borrowers whose access to funding is limited; investing in out-of-favor industries; and creating platforms with superior management teams capable of exploiting undervalued, niche, or dislocation-driven opportunities.”

Oaktree said opportunistic credit has been a core investment focus for the firm since it was founded more than 25 years ago.

Formerly known as ‘distressed opportunities’, Oaktree rebranded the strategy to Global Opportunities amid a broadening of its mandate to include more geographies.

Robert O’Leary, co-portfolio manager and head of North America for the Global Opportunities strategy, said, “Investing through many cycles requires the flexibility to transact in a variety of situations.

“Our strong deployment activity over the last 16 months demonstrates Oaktree’s ability to quickly execute and provide solutions across the capital structure in a diverse and swiftly evolving opportunity set.”

Earlier this year Oaktree raised its biggest-ever real estate fund thanks to a $4.7bn final close – more than $1bn above its initial target.

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