Oaktree Capital Management, L.P. (Oaktree) has announced the final close of its third Special Situations fund, Special Situations Fund III and its related vehicles, with total capital commitments of approximately $3bn. The fund exceeded its target of $2.5bn and was nearly 30% larger than Special Situations Fund II and its related vehicles.
Oaktree’s Special Situations strategy utilizes a highly flexible approach to make control or significant-influence-oriented private equity and debt investments in middle-market companies experiencing temporary challenges, stress or distress, or are seeking an alternative to traditional capital markets. The all-weather strategy combines Oaktree’s expertise in both credit and private equity investing and seeks to generate private-equity-like returns while taking credit-like risk.
The Fund will invest primarily in North America across industries, including consumer products, gaming, industrials, healthcare, media/entertainment, business and financial services and food & beverage. To date, the Fund has invested approximately one-third of its capital in an attractive mix of opportunities that are diversified across sectors.
