Information about Oaktree

Hello everyone,

I was wondering if anyone could give me some info about Oaktree Capital Management's different investing arms. I've looked at some of the older post, but I was curious what their PE practice looks like? I know their distressed debt practice is incredible, but from articles I've read it seems they have a traditional PE practice as well with less of a focus on leverage. Am I misinterpreting this or can anyone tell me anything about this?

Additionally, can one at a BB be on the radar for this sort of opportunity coming from a coverage background rather than just Lev Fin (for their debt practice specifically)? If not, what other opps, if any, exist their for someone from a coverage background who has done a good amount of M&A?

Thanks!

 

Oaktree has a principal opportunities fund that is effectively a PE + distressed for control strategy. It's a very interesting strategy that leverages their knowledge of credit investing to buy controlling stakes in bankrupt companies where there is much less competition driving up multiples. They fund also invests in regular healthy companies.

They recruited at my firm through a headhunter (forgot which) when I was in banking. I'm assuming they still do. You don't need to be in Lev Fin.

 
Best Response

Their website is very informative, so take a look there if you haven't already. The PE side of things still looks at distressed situations, but unlike the distressed debt group, they are always looking for a route to take control of the business, which they will often do through the debt i.e. loan-to-own. In London they recently revamped the hierarchy and created a new "Analyst" position below that of "Associate", and the profile they were looking at for the Analyst level was someone with less than 2 years experience coming out of M&A, not looking at people coming out of lev fin at this level at all. They consider lev fin people for Associate level (2-4 years banking), but probably still lean towards M&A. Speaking a European language is also essential; they will not hire someone who just speaks English. I imagine the set up is different in the US, though.

The distressed debt group in London has hired two junior analysts (~18 months experience) in the last two years: one was M&A from a bulge bracket; one was restructuring/M&A from more of a mid-market firm.

They use headhunters to fill the positions.

 

Are there any buyside opportunities straight out of undergrad that Oaktree (distressed opportunities, especially) would recruit out of after a couple of years, instead of going through the traditional BB recruiting route? I'm wondering if Oaktree would even prefer this route since I always hear that buyside experience would be more relevant than banking experience. I'm sure analysts at BX PE, SSG, and Silver Lake would get looks, but what about those starting at Ares, Audax, Sankaty, Silver Point, LGP, etc?

 

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