PM Alpha ODD conducted an initial operational due diligence (ODD) review of Oaktree Capital Management, including an evaluation of the Oaktree Opportunities Strategies and the Oaktree Special Situations Strategy. Oaktree Capital Management is a global alternative investment management firm that was founded in 1995 by Howard Marks, Bruce Karsh, Larry Keele, Richard Masson, and Sheldon Stone. The firm manages a diverse range of investment strategies, including distressed debt, corporate debt, real estate, and convertible securities, with a strong focus on risk management and a disciplined investment approach.

The ODD process evaluated the operations and non-investment aspects of the Manager, including a desk-side based review of all relevant documentation, although an onsite review has not yet been undertaken. PM Alpha ODD noted that Oaktree overall highlighted no material issues of concern and received a rating of ‘no material issues of concern’ across all 11 categories, however, it should be noted that this is only an initial review.

In September 2019, Brookfield Asset Management acquired approximately 61.2% of the Oaktree business in a transaction valued at approximately $4.7 billion, and the combined entity is now one of the largest alternative asset managers in the world, with over $600 billion in assets under management. Overall, the initial ODD review of Oaktree Capital Management found no material issues of concern, and further due diligence is recommended to fully evaluate the investment opportunity.