The company is well positioned to act when
opportunities arise, particularly with plans to raise about $20
billion in new capital to supplement an existing $13 billion in
"dry powder" - money pledged by investors to private equity
firms but still yet to be invested.
The lack of attractive investment opportunities in distressed
and high-yield debt has depressed its shares recently, the
report said. However, the dip may benefit investors who believe
that volatility will return to the credit markets. The company
became public in April 2012, and its stock is up 10 percent
since then, but down 30 percent from a March peak, the paper
said. Oaktree's stock fell 39 cents on Friday to close at
Also, the paper said that Oaktree's revenue could fall 30
percent this year to $1.4 billion, "driven by a steep drop in
incentive income, mainly due to the failing off of distributions
from a large distressed-debt fund raised during the recession."
Revenue is expected to grow in 2015.
(Reporting by Catherine Ngai; Editing by Eric Walsh)
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