According to the Wall Street Journal, Oaktree Capital Group plans to raise a new infrastructure fund early next year. According to the source, Oaktree Capital's Managing Principal John Frank revealed their intentions during a conference call.
Mr. Frank said that Oaktree will close its acquisition of Highstar Capital, a leading infrastructure investment manager, during these days.
Highstars infrastructure investment strategy is complementary to Oaktrees successful Power Opportunities strategy, led by Ian Schapiro, who will oversee the Highstar team and be responsible for its integration into Oaktree. Since 1995, the Oaktree Power Opportunities team has invested in companies that provide products and services that support energy and utility infrastructure. Highstar invests in the physical infrastructure itself.
In a hypothetical example the firm gave LBO Wire in June, Oaktree's power team could invest in a construction company that builds power plants, while Highstar may provide longer-term capital for the power plants themselves.
Oaktree will take over management of Highstar's most recent fund, Highstar Fund IV, which has about $2.3 billion of assets under management.
Fund IV is about 70% committed, said Mr. Frank. He also added that Oaktree plans to begin raising an infrastructure fund early next year although he didn't specify a target amount for the new offering.