Oaktree to Expand Power Opportunities Strategy with Acquisition of Highstar Capital Team

  Oaktree to Expand Power Opportunities Strategy with Acquisition of Highstar
  Capital Team

    Acquisition expands Oaktree’s presence in $700 billion North American
                             infrastructure space

Business Wire

LOS ANGELES -- June 9, 2014

Oaktree Capital Management, L.P. (“Oaktree”) today announced that it has
entered into a definitive agreement to acquire the Highstar Capital
(“Highstar”) team, a leading infrastructure investment manager. Financial
terms were not disclosed.

Highstar’s infrastructure investment strategy is complementary to Oaktree’s
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.

“We believe that the aging nature of global infrastructure and the move toward
public-private partnerships are creating opportunities for experienced and
knowledgeable investors to source investments that will benefit the
infrastructure system. Highstar is a pioneer in infrastructure investing, and
a leader in U.S. energy infrastructure, waste management and transportation
public-private partnerships - a skill set that is highly complementary to
Oaktree’s Power Opportunities strategy,” said John Frank, Managing Principal
of Oaktree. “Furthermore, Highstar’s long-term, value-oriented and
risk-controlled investment approach is fully consistent with the Oaktree
investment philosophy.”

“We are proud of our long track record of investing in successful companies
that support North American energy infrastructure,” said Ian Schapiro,
Managing Director and Portfolio Manager. “We believe the time is right to
capitalize on our extensive experience in this market and our access to
proprietary deal flow by investing directly in infrastructure opportunities.
We have been looking for an experienced and capable investment team that
shares our investment approach, is able to help source attractive investment
opportunities, and is capable of adding value to these investments once made.
We believe Highstar is such a team.”

“We couldn’t have hoped for a better new home for our team,” said Highstar
Founder and Managing Partner, Christopher H. Lee. “Oaktree brings global
resources, an enviable investment track record, and a highly complementary set
of investment skills and capabilities. We are very excited to become a part of
the Oaktree family, and believe that together we will be able to continue to
provide our investors with a first-rate infrastructure investing platform.”

The transaction, which is subject to customary regulatory and other approvals,
is expected to close in the third quarter of 2014, at which time Oaktree will
become the manager of Highstar Fund IV with $2.3 billion of assets under
management as of December 31, 2013.

About Oaktree

Oaktree is a leader among global investment managers specializing in
alternative investments, with $86.2 billion in assets under management as of
March 31, 2014. The firm emphasizes a value-oriented and risk-controlled
approach to investments in a variety of asset classes. Since its inception in
1995, Oaktree’s Power Opportunities strategy has focused exclusively on
providing capital to leading companies that provide equipment, services,
software and infrastructure used in the electric power and natural gas
industries. Headquartered in Los Angeles, Oaktree has over 800 employees and
offices in 16 cities worldwide. For additional information, please visit
Oaktree’s website at http://www.oaktreecapital.com/.

About Highstar Capital

Highstar Capital is an independent, owner-operated infrastructure investment
firm with an operationally focused, value-added investment strategy. Since
2000, the Highstar Team has managed approximately $7 billion of committed
capital on behalf of managed funds and co-investors. It has invested in
energy, environmental services and transportation infrastructure.

Contact:

Oaktree Capital Group, LLC
Andrea D. Williams, 213-830-6483
investorrelations@oaktreecapital.com
or
Sard Verbinnen & Co
John Christiansen, 415-618-8750
jchristiansen@sardverb.com
Carissa Felger, 312-895-4701
cfelger@sardverb.com
 
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