Oaktree Capital Management’s record setting “OCM Opportunities Fund VIIb” has returned $3 billion to limited partners as its investment period neared an end.
The fund, which began investing in May 2008, had raised $10.9 billion and went on to invest the bulk of its capital in the period between the Lehman Brothers bankruptcy and the end of 2008.
Howard |
Fund VIIb had been aiming for gross returns of 25-30 percent or more, but good distressed investment
We generally don't extend funds. We give people their money back and give them the choice whether to invest in the next fund. |
Since raising Fund VIIb, Oaktree has raised successor funds VIII and VIIIb, communicating different returns expectations to LPs in light of changed conditions.
Oaktree declined to comment on fundraising activity.
Fund VIII was reportedly capped at $4 billion and Fund VIIIb, expected to close next month, was meant to serve as an “overflow” reservoir of capital, that would not be capped and would not incur management fees unless and until capital was drawn, according to public documents from Oaktree limited partner The Oregon Investment Council. The firm is believed to have invested around half of Fund VIII to date.