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.

 

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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:

 
Most Helpful

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.  

 

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

 

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