Oaktree’s Howard Marks Sees Opening in Private Equity, Real Estate Pain
- Debt costs have risen for assets based on leverage, Marks says
- That’s creating opportunities for distressed investors
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Struggling under the weight of interest rates, highly-levered assets within private equity and real estate are promising distressed investors some of the best opportunities in more than a decade, according to Howard Marks, co-chairman and co-founder of Oaktree Capital Management.
“The use of debt to amplify your returns has been the lifeblood of these two asset classes and they’ve done extremely well as a result,” he said in an interview on Bloomberg Television Monday. “But that’s where the pain will come in the future.”