Marks’s Oaktree Seeking $500 Million for Senior Loan Fund

Oaktree Capital Group LLC (OAK), the world’s largest distressed-debt investor, is seeking $500 million for a fund that will invest in U.S. senior loans, according to a fund document.

Oaktree Enhanced Income Fund II LP expects to use leverage of as much as three times, according to an excerpt from a private placement memorandum viewed by Bloomberg News. Alyssa Linn, a spokeswoman at Sard Verbinnen & Co., declined to comment on behalf of Oaktree.

Oaktree is pitching the fund as investors hunt for yield amid record-low interest rates. Oaktree’s predecessor fund, which is targeting returns of close to 10 percent after fees, gathered $1.8 billion, surpassing its $1.5 billion target, John Frank, Oaktree’s managing principal, said on an earnings call last year.

Howard Marks founded Los Angeles-based Oaktree in 1995 with Bruce Karsh and five other partners from TCW Group Inc. The firm manages various strategies including distressed trading and debt-for-control, emerging markets, mezzanine and real estate.

To contact the reporter on this story: Sabrina Willmer in New York at

To contact the editor responsible for this story: Christian Baumgaertel at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.