Special Situations - Oaktree

Hi everyone - I'm looking for some additional information for Oaktree's special situations fund. They recently raised $2.3bn and make control debt and equity investments. Typical investment mandate for special situations (distressed, generalist, etc.)

Does anybody know if:
1) It is a 2-3 and out for business school program for associates?
2) What is the general perception of those who work for this group? (I only ask because I don't plan on getting an MBA and want to keep as many doors open as possible for other top-tier firms)
3) If it's not career track, what are the typical exits?

Any advice would be appreciated, thanks.

Comments (19)

3y 
WSO Monkey Bot, what's your opinion? Comment below:

Hey Cosa-Nostra, what a lonely thread. I'm here since nobody responded ...so maybe one of these discussions will help:

  • How to get to Special Situations or Distressed Debt investing from M&A Banking? special situations investing role. Will coming from an M&A background hinder me from doing this? ... Here's my situation, I'm a rising junior currently interning in a credit investing role ... a place like Oaktree, Blackstone GSO or Tac Opps, Apollo, Ares, Silver Point, etc. No Yes 276141 428166 ...
  • Direct Lending--> Distressed/Special Situations Investing Hey guys, I've been interested in distressed / special situations investing for over a year ... suggestions. Distressed Debt special situations hedge fund Direct Lending Special Sits deep value Event-Driven ... ultimate long term goal is to work for a distressed / special sits fund. My main questions are: How ...
  • Distressed / Special situation M&A IBs Hi folks, Does anyone have a list of distressed M&A / special situation investment banks? ... Would be very helpful. Thanks! distressed M&A IB ...
  • "special situations" = distressed debt investing? I always see people who worked in the special situations team- I get the sense that this is ... distressed debt investing? Second, Curious to know if these positions pigeon hole yourself even more into ... a specialized area of RE- or if the skillset you learn from debt investing can be used to move into other areas ...
  • Distressed Debt / Special Situations Modeling Tests modeling special situations modeling test distressed debt pe ...
  • Distressed / Special Situations Firms... East Coast Preference firms that specialize in special situations, distressed debt, and restructuring investment or advisory. ... debt pe debt distressed Distress Investing special situations special situations investing Bankruptcy ... Obviously this list would be more valuable if we could add some of the less well known names. distressed<
  • Distressed vs. Credit vs. Special Situation vs. Turnaround PE a special situation. A special situation doesn't always have to be distressed though. I'll try to ... credit arms, but what are the big names in special situations and turnaround PE? Private Equity ... yield coupon payment. Private Equity Special Situations Imagine a small regional company wants to do ...
  • More suggestions...

You're welcome.

  • 1
2y 
Goldman's Sack, what's your opinion? Comment below:

interested

Debt isn't the only thing distressed at this shop

  • Analyst 1 in IB - Restr
2y 

Bump

  • Incoming Analyst in IB - Gen
2y 

bump

Funniest
  • Prospect in Other
2y 

Sounds like anyone in or around that space is too busy to respond...

  • 4
  • Research Associate in HF - Event
2y 

It's just their turnaround private equity group led by two PMs who basically got huge carry in these specific fund vintages on the success of a few food investments they made last recession that generated monster P&L (one company i believe they made $2 billion of P&L).

They won't touch as much typical liquid corporate distress like the other core funds at OAK, but focus on specific niche industries where they think their operating experience can lend to a full turnaround of the asset (and typically acquiring the controlling stake through a private loan-to-own or situation where they can buy up almost the entirety of the fulcrum).

These guys get worked like dogs, which is expected since its private equity-style and its OAK. Have had a few friends close to the group work in and around it, they typically leave after two years as its relatively big group / top-heavy (2 PMs, 7 MDs, 5 VPs, 8-9 associates + a whole bunch operating people). It's not a place I would consider a partner-track fund.

There's a video with one of the PMs below: https://youtu.be/QRaXQEeRjUo

  • 2
Most Helpful
1y 
trees789, what's your opinion? Comment below:

I know this fund well.  The lifestyle is pretty good - I would say that folks get in around 8-9 and senior folks (SVP+) are out of there by 5-6.  Performance has been terrible - they had to downsize from a $3.3bn fund 5 to a $1.2bn fund 6, and net IRRs have been LSD for both.  The group struggles to define itself and its role within the broader Oaktree umbrella - its tiny compared to the flagship distressed fund (and less respected), it's smaller than its European counterpart, it often competes with other strategies across the firm.  The PMs have had a couple hits (Advance Pierre, Cyanco) but generally not great. As someone else mentioned it's extremely top heavy and given the AUM it's hard to make the numbers meaningful/work.  Of course, the Oaktree brand is good on the resume but overall would not recommend if you're looking for a good learning experience.  

  • Analyst 1 in IB - Gen
1y 

Any numbers for comp at the Analyst, VP, and PM levels?

  • Principal in PE - LBOs
1y 

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