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Bailey McCann, Opalesque New York:

Asset management firm Oaktree has launched a private credit arm - Oaktree Lending Partners.

Oaktree Lending Partners is targeting $10 billion in equity commitments from institutional investors for the group which will make senior secured loans of $500 million or more to private equity backed companies. Oaktree believes this market is especially attractive now, given the limited availability of debt capital to finance large leveraged buyouts (LBOs) and the record-high levels of committed private equity capital yet to be deployed, requiring financing.

"We're very excited to announce the launch of OLP. The need for this type of lending is significant, but we anticipate limited competition given the retreat of banks from this area and the dearth of nonbank lenders with the requisite scale, flexibility and credit expertise. We feel this creates opportunities to lend at attractive rates for deals with strong covenants and low leverage ratios," said Howard Marks, Co-Chairman of Oaktree in a statement. "Our approach to direct lending has always been grounded in the first tenet of Oaktree's investment philosophy: the primacy of risk control. We believe this to be one of the most attractive opportunities we've ever seen in direct lending."

Oaktree lending partners will also be working with asset managers on a variety of financing solutions. "Additionally, our partnership with 17Capital differentiates us among lenders by au......................

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