Oaktree closes power fund IV on $1bn

The alternative assets manager will launch its first infrastructure vehicle this month after Q1 fundraising boosted its total assets under management to a record $100bn.

Los Angeles-based alternative assets manager Oaktree Capital Management has announced a first and final close on its fourth Power Opportunities fund of $1 billion. 

Along with two new distressed debt funds, which added to the capital raised by the firm during the first quarter, the milestone helped Oaktree achieve a record $100 billion in assets under management as of March 31.

“Of the first quarter’s total capital raise of $11 billion, $9 billion went to closed-end funds,” Oaktree’s chief executive Jay Wintrob said during an earnings call on Thursday. “Opps X and Xb [Oaktree Opportunities Funds X and Xb] accounted for $7 billion towards an eventual target of $10 billion, while Power Opportunities Fund IV had a one and done closing at $1 billion.”

According to Infrastructure Investor Research & Analytics, Oaktree began fundraising power fund IV last November. With a final close of $1 billion, the firm met the higher end of its initial $800 million to $1 billion range, making fund IV similar in size to its predecessor, which closed in June 2011 on $1.04 billion.

“Last quarter I mentioned that we are targeting our largest-ever closed-ended fund marketing effort of $20 billion over 18 months, which includes capital for distressed debt, real estate, power, infrastructure and senior loans,” Wintrob said, adding that the firm plans to launch the marketing effort for the first Oaktree infrastructure fund in May.

Oaktree will raise the fund with the team from Highstar Capital, the infrastructure fund manager the Los Angeles firm acquired last June as it felt it was complementary to its Power Opportunities strategy. In addition to acquiring the team, Oaktree also became manager of Highstar Fund IV, which had $2.3 billion of assets under management as of December 2013.

Wintrob did not provide details regarding the amount targeted nor the new fund’s mandate. A spokesperson for the firm did not respond to a request for comment.

Oaktree, which specialises in alternatives, has been investing in power since it was created in 1995. It added infrastructure to its investment strategy in 2011. Upon its acquisition by the firm, Highstar Capital became part of Oaktree’s Power Opportunities platform, led by Ian Schapiro.