Oaktree Capital Management

• 1. Founding And Early Growth

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  In 1995, a group of former TCW Group principals established Oaktree Capital Management in Los Angeles. Within three months of that founding, more than 30 TCW clients transferred $1.5 billion in assets to the new firm. Howard Marks and his partners had worked together at TCW since the mid-1980s before launching their own venture. The early strategy focused on distressed debt, a niche area where they could leverage their existing relationships. By 1996, Oaktree was selected as the sub-advisor for the Vanguard Convertible Securities Fund. This partnership marked one of the first major public validations of their approach. Between 1997 and 1999, the firm created three new strategies: Emerging Markets Absolute Return, European High Yield Bonds, and Power Opportunities. These moves signaled an intent to expand beyond U.S. markets into Europe and Asia. The growth was rapid but disciplined, with offices opening globally to support these step-out strategies.

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• 2. Distressed Debt Dominance

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  As reported by The Washington Post on the 26th of June 2011, Oaktree's 17 distressed-debt funds have averaged annual gains of 19% after fees over 22 years. These funds do not use leverage, distinguishing them from many competitors who rely heavily on borrowed capital. The firm became known as the largest distressed-debt investor in the world following its formation in 1995. In 2010, Oaktree turned down potential investors due to self-imposed limits on fund size because demand exceeded capacity. Their client base includes 64 of the 100 largest U.S. pension plans and over 550 corporations or their pension funds. More than 275 university endowments and charitable foundations also allocate money to Oaktree. According to The Wall Street Journal, the firm has long been considered a stable repository for pension-fund and endowment money. This reputation allowed them to raise $11 billion for their distressed debt fund in 2008 alone.

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• 3. Regulatory Challenges And Interventions

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  In 2005, the Securities and Exchange Commission ordered Oaktree to pay a fine, interest, and disgorge profits after ruling they had sold securities short before five legal business days following a public offering pricing. The regulator required the firm to implement policies and procedures to prevent future violations. Despite this setback, the firm continued to grow and gained prominence during the financial crisis. In 2009, Oaktree was selected by the U.S. Treasury along with eight other managers including BlackRock and Invesco to participate in the Public-Private Investment Program. At that time, The New York Times reported Howard S. Marks as the sort of financier Washington hoped would help fix the nation's tumbledown banks. As of the 31st of December 2018, the Oaktree PPIP Fund had achieved a gross return of 28%. This government partnership demonstrated both regulatory scrutiny and eventual trust in the firm's ability to navigate complex market conditions.

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• 4. Public Listing And Strategic Acquisitions

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  On the 12th of April 2012, Oaktree Capital Group became listed on the NYSE under the ticker symbol OAK. Prior to this, shares traded on GSTrUE, a private over-the-counter exchange run by Goldman Sachs which ceased operations later that year. The move to the NYSE followed similar actions taken by Apollo Global Management in 2011. In 2009, Oaktree acquired a 20% stake in DoubleLine Capital, a Los Angeles-based investment firm specializing in mortgage-backed fixed income portfolios. By 2015, the company raised $12 billion for its Oaktree Opportunities Funds X and Xb. In 2017, Eaton Vance launched the Oaktree Diversified Credit NextShares exchange-traded managed fund with Oaktree serving as subadvisor. These moves reflected a broader strategy to diversify offerings while maintaining core strengths in credit and distressed assets. The public listing also enabled greater transparency and access to institutional capital markets.

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• 5. Brookfield Takeover And Ownership Changes

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  On the 13th of March 2019, Canada's Brookfield Asset Management announced it had agreed to buy 62% of Oaktree Capital Management for approximately $4.7 billion. Completion of the acquisition was confirmed on the 30th of September 2019. This deal created one of the world's largest alternative money managers at the time. In October 2025, Brookfield Corporation and Brookfield Asset Management agreed to acquire the remaining portion of Oaktree for $3 billion. That transaction gave Brookfield full ownership of the business and expanded its private credit portfolio significantly. The multi-stage process involved careful negotiation and regulatory approvals across multiple jurisdictions. Howard Marks remained a key figure during the transition period before stepping down from his co-chairman role. Robert O'Leary and Armen Panossian were named incoming co-CEOs in June 2023, signaling a new leadership era under Brookfield stewardship.

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• 6. Global Investment Portfolio And Diversification

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  As of the 30th of September 2025, Oaktree managed $218 billion for its clientele through offices in 26 cities worldwide including London, Tokyo, Hong Kong, and Sydney. The firm operates across three main asset classes: credit, equity, and real estate. Notable investments include Inter Milan, an Italian football team acquired with 99.6% ownership, and Caen, a Ligue 2 club in France where Oaktree held 80% of shares until selling them to Kylian Mbappé in 2024. In July 2025, Oaktree acquired media company FilmRise and merged it with Shout! Studios to form Radial Entertainment. Other holdings span fitness chains like Fitness First taken over in 2012, glass etching firms such as Verreries de l'Orne à Ecouché purchased in April 2010, and telecommunications companies like Zzoomm acquired for £100 million in September 2020. These diverse assets illustrate how the firm has expanded beyond traditional finance into entertainment, sports, and industrial sectors globally.

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