Oaktree Capital Management has launched two new funds, according to 21 August filings from the firm with the US Securities & Exchange Commission.
The California PE firm launched fundraising end of July for Oaktree European Principal Fund IV and Oaktree European Capital Solutions Fund. Neither targets were disclosed.
European Principal Fund IV will target control investments in distressed companies. “We continue to take advantage of opportunities arising from the prolonged dislocation in the European lending markets stemming from the global financial crisis,” Oaktree CEO Jay Wintrob said in an earnings call on 28 July.
The fund’s predecessor, Fund III, is a 2010-vintage vehicle with commitments from LPs such as the Arizona State Retirement System, CalSTRS, NYSTRS, Rhode Island State Treasury, Casey Family Programs, China Development Industrial Bank and SH Cowell Foundation, according to PEI’s Research & Analytics division.
Oaktree’s European principal fund series generated a 4 percent gross return in the second quarter of this year, Wintrob said.
European Capital Solutions Fund will raise funds to lend to middle-market companies, Wintrob said. It is a successor to the first European private debt fund from two years ago.
Oaktree Capital manages $103 billion in assets, according to Research & Analytics, and has offices in Los Angeles, New York, Luxembourg, London, Dublin, Seoul, Paris, Stamford, Singapore, Tokyo, Amsterdam, Dubai, Frankfurt, Hong Kong, Beijing and Shanghai.
In the same call, chief financial officer David Kirchheimer stated that Oaktree saw a record amount of shadow AUM of $17.1 billion in the second quarter representing mostly closed-end funds that have the highest management fee rates.
“We don’t expect management fees to increase, at least not appreciably, until the fourth quarter or possibly later,” Kirchheimer said in the call, adding that the management fee-generating AUM rose just $100 million in the quarter.
As of last month, it had raised $9.4 billion for Oaktree Opportunities Fund X.