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Oaktree Capital Launches $10 Billion Fund To Finance Large Buyouts
Table of Contents
- 1. Oaktree Capital Launches $10 Billion Fund To Finance Large Buyouts
- 2. Understanding Leveraged Buyouts And Private Credit
- 3. Frequently Asked Questions About Oaktree’s New Fund
- 4. What are the primary factors contributing to the increased demand for private credit, as highlighted in the text?
- 5. Oaktree Seeks $10 Billion for Expanded Leveraged Buyout Lending Fund
- 6. the Rise of Private Credit & Oaktree’s Strategy
- 7. Understanding Leveraged Buyouts and Direct Lending
- 8. Why Oaktree is Expanding its Lending Capacity
- 9. Target Market: Mid-Market Companies
- 10. Oaktree’s Competitive Advantages in Private Credit
- 11. Implications for Borrowers & Investors
- 12. Recent Trends in Direct Lending & LBO Financing
By Archyde News desk
Oaktree Capital, A $170 Billion Credit Investment Manager, Is Preparing To Launch A New Fund Focused On Financing Large Private Leveraged Buyouts (LBOs). The Firm Aims To Raise $10 billion Over The Next Two Years Through Oaktree Lending Partners (OLP).
This Initiative Will Focus On Providing Senior Secured Loans, Specifically targeting Deals Of $500 Million Or More To Private Equity-Backed US Companies Generating Over $100 Million In Earnings Before Interest, Taxes, Depreciation, And Amortization (EBITDA).
Oaktree Identifies A Meaningful opportunity In This Market Due To The Current Scarcity Of Debt Capital Available For LBOs. Simultaneously, Record Levels Of Committed private Equity Capital Remain Undeployed, Creating A Significant demand for Financing.
According To oaktree, the Risk-Adjusted Return Potential In This Segment Currently Outperforms Other Liquid Asset Classes And Certain Areas Of Private Debt.This Makes It An attractive Investment Opportunity.
“We’re Very Excited To Announce The Launch Of OLP,” Stated Howard Marks, Co-chairman Of Oaktree. “We Feel This Creates Opportunities To Lend At Attractive Rates For Deals With strong Covenants And Low Leverage Ratios.”
Oaktree’s Private Credit Platform, Established In 2001, Currently Manages Approximately $24 Billion Across Its Global, US, And European Private Debt Strategies. This New Fund Represents A Significant Expansion Of Their Capabilities.
Understanding Leveraged Buyouts And Private Credit
Leveraged Buyouts Involve Acquiring A Company Using A Significant Amount Of Borrowed Money.Private Credit Funds Like OLP Play A Crucial Role In Providing This Financing, Often Filling gaps Left By Traditional Banks.
The Current Habitat, Characterized By Higher Interest Rates And Increased Lending Scrutiny, has Created A Favorable Landscape For Experienced Private Credit Managers Like Oaktree.
Frequently Asked Questions About Oaktree’s New Fund
What Is Oaktree Lending Partners (OLP)?
OLP Is A New Fund Launched By Oaktree capital Specifically Designed To Provide Senior Secured Loans For Large Private Leveraged Buyouts.
How Much Capital Does Oaktree Aim To Raise With OLP?
Oaktree Is Targeting A $10 Billion Raise For The OLP Fund Over The Next Two Years.
What Types Of Companies Will OLP Finance?
The Fund Will Focus On US Companies Owned By Private Equity Firms, Typically Those With Over $100 Million In EBITDA.
Why Is Oaktree Launching this Fund Now?
Oaktree Sees A Significant Opportunity Due To Limited Debt Capital availability For LBOs And A Large Amount Of Undeployed Private Equity Capital.
What Is Oaktree’s Experience In Private Credit?
Oaktree Has Managed A Private Credit platform Since 2001, Currently Overseeing Approximately $24 Billion In Assets.
what Are Senior Secured Loans?
Senior Secured Loans Are Loans That Have The Highest Priority For Repayment In The Event Of A Company’s Financial Distress, And Are Backed By the Company’s Assets.
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