Oaktree Capital seeks to raise $10 billion for new fund- FT

FILE PHOTO: A picture illustration shows U.S. 100-dollar bank notes

(Reuters) – Oaktree Capital plans to raise $10 billion for a new fund that will help finance large private equity takeovers, the Financial Times reported on Tuesday, citing a letter sent to the U.S. asset manager’s clients.

The new fund, known as Oaktree Lending Partners, may tap into bank loans to ultimately invest $20 bln in sponsor-backed debt, the report said.

The fund’s launch comes at a time when global banks have been reluctant to lend amid rising fears of a recession.

The credit investment manager plans to raise and invest the $10 billion within the next two years, FT reported.

Oaktree expects to offer loans of about $500 million or more to leveraged buyout groups, the newspaper said.

The company and asset management firm Brookfield, which owns a majority stake in the investment firm, will invest $2 billion in the new fund, the report added.

Oaktree Capital and Brookfield did not immediately respond to a request for comment.

(Reporting by Jose Joseph in Bengaluru; Editing by Dhanya Ann Thoppil and Sohini Goswami)