A Guide To Investing In Oaktree Funds

Oaktree Capital Management is an American global asset management firm specialising in alternative investment strategies. The company manages billions of dollars for its clientele, including pension plans, corporations, endowments and foundations, and sovereign wealth funds. Oaktree offers a range of investment funds, including mutual funds, credit funds, private equity funds, and real asset funds. The company's mission is to deliver superior investment results with a focus on risk control. Oaktree's investment strategies are divided across four asset classes: credit, private equity, real assets, and listed equities. The company has a global presence with offices in 23 cities worldwide.

Oaktree's investment philosophy

Oaktree Capital Management is a global asset management firm specialising in alternative investment strategies. The company was founded in 1995 and is based in Los Angeles, with offices in 22 other cities worldwide.

Oaktree's mission is to deliver superior investment results with risk under control and to conduct its business with integrity. The company is a leader in alternative investments and offers a broad range of products across the capital structure.

Oaktree's credit strategies invest in both liquid and illiquid instruments, sourced directly from borrowers and via public markets. The company's private equity strategies focus on a wide range of regions and market sectors, combining traditional private equity and distress-for-control activities. Oaktree's real assets platform capitalises on the company's global footprint, multi-disciplinary capabilities, extensive network of industry experts, and key relationships with operating partners. The company's listed equities strategies seek to invest in undervalued stocks in specific regions.

Oaktree's current investment activities are divided across four asset classes: credit, private equity, real assets, and listed equities. The company has created various "step-out" strategies, often coinciding with the opening of new offices around the world. Oaktree's growth in strategies has largely focused on expanding into European and Asian markets.

Oaktree's investment funds

Oaktree Capital Management is a global asset management firm specialising in alternative investment strategies. The company was founded in 1995 and is based in Los Angeles, with offices in 22 other cities worldwide.

Oaktree's current investment activities are divided across four asset classes: credit, private equity, real assets, and listed equities. The firm's investment philosophy emphasises risk control and consistency, aiming to deliver superior investment results while managing risk.

Oaktree offers a broad range of products across the capital structure, including credit strategies that invest in both liquid and illiquid instruments. Their private equity strategies focus on a diverse range of regions and market sectors, combining traditional private equity and distress-for-control activities.

One of Oaktree's investment funds is the Oaktree Strategic Credit Fund, a non-listed business development company (BDC). This fund primarily invests in privately negotiated loans to US companies and strategically invests in discounted, high-quality public investments to enhance total return and provide liquidity during market dislocations. The fund offers investors potential benefits such as stable current income, long-term capital appreciation potential, and a diversified portfolio.

Oaktree also provides a range of mutual funds, such as the Oaktree Emerging Markets Equity Fund, which has won awards for its performance. Additionally, Oaktree has launched Luxembourg-domiciled funds, such as the Oaktree Global High Yield Responsible UCITS Fund, leveraging its expertise and breadth of investment capabilities.

To learn more about investing in Oaktree's funds, individuals can refer to the Oaktree website and consult their financial advisors.

Oaktree's investment performance

Oaktree Capital Management is an American global asset management firm specialising in alternative investment strategies. The company was founded in 1995 and is based in Los Angeles, with offices in 23 cities worldwide. Oaktree Capital Management is a leader in alternative investments, offering a broad range of products across the capital structure.

Oaktree's current investment activities are divided across four asset classes: credit, private equity, real assets and listed equities. Their credit strategies invest in both liquid and illiquid instruments, sourced directly from borrowers and via public markets. Their private equity strategies focus on a broad range of regions and market sectors, combining traditional private equity and distress-for-control activities. Oaktree's real assets platform capitalises on the company's global footprint, multi-disciplinary capabilities, extensive network of industry experts, and key relationships with operating partners. Their listed equities strategies seek to invest in undervalued stocks in specific regions.

Oaktree has a strong track record of investment performance. Since its formation in 1995, the company has become the largest distressed-debt investor in the world. As reported in The Washington Post in 2011, Oaktree's 17 distressed-debt funds (which do not use leverage) have averaged annual gains of 19% after fees over a 22-year period. In 2008, the firm raised $11 billion for its distressed debt fund. Oaktree's funds are often oversubscribed, and the company has turned down potential investors due to self-imposed limits on fund size.

Oaktree's investment philosophy emphasises risk control and consistency. The company is dedicated to achieving superior investment results with risk under control and conducts its business with the highest integrity. Oaktree's clientele includes some of the largest pension plans, retirement plans, corporations, endowments, foundations, and sovereign wealth funds in the United States. According to The Wall Street Journal, Oaktree has been considered a stable repository for pension fund and endowment money.

In addition to its distressed-debt funds, Oaktree has introduced various other successful investment strategies. These include Mezzanine Finance, Asia Principal Opportunities, European Senior Loans, Global High Yield Bonds, and Real Estate Debt. Oaktree has also formed sub-advisory relationships with companies such as Vanguard and Credit Suisse. The company has launched several mutual funds and Luxembourg-domiciled funds, providing investors with diverse investment opportunities.

Oaktree's investment process

Oaktree Capital Management is a privately owned investment manager specializing in alternative investment strategies. The firm was co-founded in 1995 and is based in Los Angeles, with offices in 22 other cities worldwide.

Oaktree's credit strategies invest in both liquid and illiquid instruments, sourced directly from borrowers and via public markets. Their private equity strategies focus on a wide range of regions and market sectors, combining traditional private equity and distress-for-control activities.

The company's real assets platform leverages Oaktree's global footprint, multi-disciplinary capabilities, extensive industry network, and relationships with operating partners. Oaktree's listed equities strategies seek to invest in undervalued stocks in specific regions.

In summary, Oaktree's investment process is shaped by its commitment to risk management, consistency, and superior performance without high risk, leveraging its global presence, expertise, and relationships to deliver investment results across various asset classes.

Oaktree's investment risks

Oaktree Capital Management is a global investment management firm specialising in alternative investment strategies. The company has a stated mission to deliver superior investment results with risk under control. Oaktree's current investment activities are divided across four asset classes: credit, private equity, real assets, and listed equities.

Despite Oaktree's risk-controlled approach, investing in the company's funds is not without risk. Here are some key risks to consider:

Lack of Historical Performance Data

Oaktree's Strategic Credit Fund has no prior operating history, and there is no guarantee that it will achieve its investment objectives. This lack of historical data makes it challenging to evaluate the fund's potential performance.

Illiquidity and Lock-up Periods

Oaktree's funds, particularly the Strategic Credit Fund, may have limited liquidity. Investors should consider that they may not have access to their invested money for an extended period. The fund does not intend to list its shares on any securities exchange, and a secondary market for the shares is not expected to develop. As a result, investors may be unable to sell their shares and reduce their exposure during market downturns.

Investment and Market Risk

Any investment in Oaktree funds involves substantial risks, including the potential loss of the entire investment. Oaktree's ability to implement its investment strategies and achieve successful results is not assured. The company's performance may be subject to changes in economic conditions, political events, legal and regulatory requirements, interest rate fluctuations, and competition. There is no guarantee that historical trends will continue or that Oaktree can maintain its advantages over its competitors.

Blind Pool Risk

Oaktree's Strategic Credit Fund operates as a "blind pool" offering, meaning investors will not have the opportunity to evaluate the fund's investments before they are made. This lack of transparency can increase the uncertainty associated with the fund's performance.

Credit and Debt Risk

Oaktree's funds, particularly the Strategic Credit Fund, invest in credit opportunities, including privately negotiated loans and discounted public investments. These credit investments may include securities rated below investment grade or "junk" status. Such investments carry a higher risk of default or failure to make interest and principal payments. Additionally, Oaktree's use of leverage can magnify potential losses on the invested amounts.

Distribution and Return Risk

There is no assurance that Oaktree's funds will make distributions or achieve long-term capital appreciation. Distributions, if made, may be funded from sources other than cash flow from operations, including the sale of assets, borrowings, or offering proceeds. This approach can reduce the funds available for future investments and potentially impact the fund's ability to generate returns.

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