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Oaktree Capital Management

From Alfawiki
Oaktree Capital Management, Inc.
Company typePublic (since April 12, 2012)
IndustryAsset management
PredecessorTCW Group (founders were former executives)
Founded1995; 31 years ago (1995)
FounderFormer executives from TCW Group
FateMajority interest acquired by Brookfield Asset Management in 2019
Headquarters
Los Angeles
,
United States
Area served
Worldwide
Key people
Howard Marks (Co-chairman), Robert O’Leary (Co-CEO), Armen Panossian (Co-CEO)
ProductsAlternative investment funds: credit, equity, real estate
OwnerBrookfield Asset Management (62% majority interest since 2019)
Number of employees
1,200+ (2024)
ParentBrookfield Asset Management
Websitewww.oaktreecapital.com

Oaktree Capital Management, Inc. is a global asset management company based in the United States, focusing primarily on alternative investment approaches. As of September 30, 2024, the firm oversaw assets totaling $205 billion.

Established in 1995 by former executives from TCW Group dating back to the 1980s, Oaktree went public on April 12, 2012, and began trading on the NYSE under the symbol OAK. On March 13, 2019, Canada's Brookfield Asset Management acquired a majority interest of 62% in Oaktree for approximately $4.7 billion.

Firm overview

Headquartered in Los Angeles, Oaktree employs more than 1,200 professionals spread across 23 offices worldwide, including major financial hubs such as New York City, London, Hong Kong, Tokyo, and Singapore. Co-chairman Howard Marks is widely respected within the investment sector for his insightful letters to investors.

Since its inception in 1995, Oaktree has become the leading global investor in distressed debt. Its portfolio consists of 17 distressed debt funds that operate without leverage and have generated an average annual net return of 19% over a span of 22 years.

Investor base

Oaktree serves a diverse clientele comprising 65 of the top 100 U.S. pension plans, 40 state retirement systems, upwards of 500 corporations along with their pension funds, over 275 endowments and foundations, and 16 sovereign wealth funds. The firm is regarded as a reliable steward for pension and endowment capital. Its distressed debt funds frequently experience oversubscription; notably, in 2010 Oaktree restricted fund size by declining additional investors to preserve fund discipline.

Investment funds

The firm’s investment portfolio covers three main asset categories: credit, equity, and real estate.

1990s

Oaktree was launched in 1995 by key figures who had collaborated at TCW Group during the mid-1980s. Within just three months after its founding, more than 30 clients from TCW transferred $1.5 billion in assets to Oaktree.

Over time, Oaktree established several sub-advisory roles, including becoming the sub-advisor for the Vanguard Convertible Securities Fund in 1996. The company broadened its product range through "step-out" strategies aligned with the inauguration of international offices focused on European and Asian markets. Between 1997 and 1999, it introduced strategies such as Emerging Markets Absolute Return, European High Yield Bonds, and Power Opportunities.

2000s

Throughout the 2000s, Oaktree launched multiple new investment strategies including Mezzanine Finance (2001), Asia Principal Opportunities (2006), European Principal Investments (2006), European Senior Loans (2006), U.S. Senior Loans and Value Opportunities (2007), Global High Yield Bonds (2010), Emerging Markets Equities (2011), and Real Estate Debt (2012).

In 2005, the Securities and Exchange Commission imposed a fine on Oaktree for short-selling infractions related to public offerings and mandated strengthened compliance protocols.

During the financial crisis of 2008, Oaktree successfully raised $11 billion for its distressed debt fund. In 2009, it was selected by the U.S. Treasury to join the Public-Private Investment Program (PPIP) alongside firms such as BlackRock and Invesco. By December 31, 2018, the Oaktree PPIP Fund had achieved a gross return of 28%.

2010s

In 2009, Oaktree secured a 20% ownership interest in DoubleLine Capital, a firm focused on mortgage-backed fixed income assets. Its collaboration with Vanguard grew in 2011 when Oaktree was appointed as one of four portfolio managers for Vanguard's Emerging Markets Select Stock Fund. Additionally, the company provided advisory services for the Russell Global Opportunistic Credit Fund in 2010 and the Credit Suisse (Lux) I Fund in 2011.

Taking advantage of the European sovereign debt turmoil, Oaktree introduced its European Principal Fund III in November 2011, backed by €3 billion in committed capital.

On April 12, 2012, Oaktree transitioned to a publicly traded partnership on the New York Stock Exchange, moving away from the private GSTrUE exchange operated by Goldman Sachs.

By 2015, Oaktree had successfully raised $12 billion for its Opportunities Funds X and Xb. In 2017, Eaton Vance debuted the Oaktree Diversified Credit NextShares exchange-traded managed fund with Oaktree serving as subadvisor. The firm also submitted filings in 2018 to establish a $2 billion non-traded real estate investment trust.

On March 13, 2019, Brookfield Asset Management announced its agreement to purchase a 62% controlling interest in Oaktree for roughly $4.7 billion, forming one of the world’s largest alternative asset management entities. This acquisition was finalized on September 30, 2019.

2020s

In November 2021, Oaktree closed its largest capital raise to date with Opportunities Fund XI LP, securing $15.9 billion.

By March 2022, Oaktree had acquired a majority position in London-based private credit specialist 17Capital. Within a month, 17Capital raised close to $3 billion for its inaugural credit fund. In February 2023, Oaktree launched Oaktree Lending Partners, a private credit vehicle focused on financing leveraged buyouts. In June 2023, Robert O’Leary and Armen Panossian were appointed as co-chief executives. As of August 2023, Oaktree aimed to raise over $18 billion for its twelfth fund, Opportunities Fund XII, with ambitions to become the largest private debt fund globally.

In July 2024, Lloyds Banking Group collaborated with Oaktree to support UK buyouts through a £1 billion financing commitment.

In July 2025, Oaktree expanded its media portfolio by acquiring FilmRise and announced a merger with Shout! Studios, creating Radial Entertainment as a new holding company.

Select past and current investments

  • Aleris International – acquired May 1, 2010
  • Almatis Group – acquisition completed in 2010
  • Billabong – recognized as Australia's leading surfwear brand
  • Campofrío Food Group – held a 24% stake in this European food producer; divested in 2013
  • Conbipel – full ownership (100%) of this Italian fashion retailer
  • Environmental 360 Solutions – Canadian company specializing in environmental management services
  • Fitness First – global fitness club chain acquired alongside Marathon Asset Management in 2012; partial divestitures occurred between 2016 and 2017
  • Inter Milan – majority ownership (99.6%) of the Italian football club
  • Loews Cineplex Entertainment – acquired jointly with Onex Corporation from Sony Pictures and Universal Studios in 2002; U.S. operations sold to The Carlyle Group in 2004; Canadian operations merged into Cineplex Entertainment by 2005
  • Mail Boxes Etc. – considered acquisition involving up to a 40% stake through a phased $132 million reserved capital increase initiated in February 2020
  • Marlin Brands – holds a 50% interest alongside Alceon Group
  • MediaWorks New Zealand – secured controlling interest of 77.8% by April 2015
  • Nine Entertainment – acquired jointly with Apollo Global Management and Goldman Sachs from CVC Asia Pacific through refinancing; final stake sold in 2017
  • Quiksilver – American retail company specializing in sporting apparel
  • Sky Holding – ownership of private jet aircraft
  • Caen, French Ligue 2 football club – maintained an 80% share from September 2020 until sale to Kylian Mbappé in 2024
  • Tribune Company – jointly acquired with JPMorgan Chase and Angelo Gordon, deal completed July 2012
  • Verreries de l'Orne at Ecouché – glass etching manufacturer acquired April 2010
  • Zzoomm – UK telecommunications provider; majority stake purchased for £100 million in September 2020

See also

References

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Additional resources

  • 2011: The Most Important Thing: Uncommon Sense for the Thoughtful Investor authored by Howard Marks (published by Columbia University Press, )
  • 2018: Mastering the Market Cycle: Getting the Odds on Your Side written by Howard Marks (released by Mariner Books, )

External resources

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