Oaktree Capital Management, one of the most well-known high-yield and distressed debt money managers in the industry, is considering launching a $500 million to $2 billion add-on fund to its $2.5 billion distressed debt fund, according to BW sister publication Money Management Letter. The fund would consist of a mix of loan and bond assets from issuers that have tanked. Howard Marks, chairman of the Los Angeles-based firm, says it is considering the move because of the recent uptick in defaults and bankruptcy filings due to the weak economy. The first fund's closing was on Sept. 28 with $1.5 billion, and its second closing will be Dec. 20 with an additional $1 billion. About 20% of the existing assets in the fund come from foundations and endowments, says Marks. The minimum investment would be $3 million and the annual management fee would be 1%.
Oaktree Considers Launching Additional Distressed Debt Fund