Oaktree Capital plans Infrastructure Fund

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Oaktree Capital plans Infrastructure Fund

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.

Oaktree Capital had announced in June a definitive agreement to acquire the Highstar Capital team.

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.

Fund managed by Oaktree Capital recently acquired Veolia Environnement's water, waste and energy activities in Israel.


Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.