NEW YORK, Dec. 11, 2002 (PRIMEZONE) -- Oaktree Capital Management LLC today announced that it has raised more than $800 million for its new OCM Mezzanine Fund, exceeding its goal by more than $100 million and, in the process, making it one of the nation's largest dedicated mezzanine financing funds.
"The investment community's positive response to this new Fund clearly demonstrates confidence in the attractiveness of the market opportunity for mezzanine investing, as well as the strength of the Oaktree platform," said Bill Sacher, managing director and co-head of Oaktree's Mezzanine Group.
The Fund already has completed seven transactions valued at approximately $190 million. Bain Capital, Brera Capital Partners, Goldman Sachs, Harvest Partners, Kelso & Co., Lombard Investment and Windward Capital are the financial sponsors represented in these transactions.
"The mezzanine asset class is a logical extension of Oaktree's specialized experience and expertise in high yield bonds, private equity and distressed debt," said Howard Marks, chairman of Oaktree Capital Management LLC. "Because investors in the public high yield bond market are not receptive to offerings of less than $150 million, mezzanine debt has stepped in to fill the void. We believe the Fund will be exceptionally well-positioned to lead mezzanine debt offerings of up to $100 million."
Gary Trabka, managing director and co-head of Oaktree's Mezzanine Group noted, "The Fund will seek out opportunities to provide capital for leveraged buyouts, existing portfolio company acquisitions, financings for growth and expansion, and platform build-up strategies, especially where add-on mezzanine financing is being considered.
"We expect to build a diversified portfolio of mezzanine debt and equity investments, and are targeting companies with at least one or more of the following characteristics: sustainable cash flow, proven management team, strong relative position in the market and well-developed business strategy," added Trabka.
"In designing the new Fund, it was important to us that it be more than just another source of capital. In each of the recently completed transactions our group was able to add value through the speed of our commitment process; the creativity used in structuring the transaction; the flexible terms custom designed to meet the needs of a particular deal; and the ability to deliver what we promised," said Sacher.
Oaktree Capital Management is headquartered in Los Angeles and is a recognized leader in high-yield bonds, private equity and distressed debt, with approximately $25 billion of assets under management.
Prior to joining Oaktree in 2001, Sacher was co-head of the High Yield Origination Group at JP Morgan. Trabka joined Oaktree in 2000 after spending 22 years at Prudential Capital Group, where he was most recently responsible for managing the workout/restructuring group and, prior to that, a team making investments in private placements, corporate loans and mezzanine debt.