NOW Closed – Now closed to investment.
Spire Capital Pty Ltd (“Spire”) continues to have high conviction in select pockets of the global private markets (i.e. ‘sweet spots’). For the last 12 months, Spire has been monitoring credit conditions in anticipation of stress given ballooning issuance of sub-investment grade debt, inflated leverage levels and associated vulnerability of corporate balance sheets. This included face-to-face due diligence meetings with a number of distressed debt investors in New York and ongoing dialogue with preferred manager Oaktree Capital Management, L.P. (including its affiliates, individually or collectively, as the context requires, “Oaktree”). After a prolonged period of benign market conditions for distressed debt investing, the cycle turned with the onset of the coronavirus. In mid-March 2020, Spire accelerated final stage due diligence on Oaktree’s distressed debt capabilities and Opportunities XI program before resolving to create and capitalise Spire Oaktree Opportunities Fund XI (AUD) First Close (“the Fund”) with principal capital.
The Fund seeks to deliver steady returns and strong asset growth from global distressed debt. The Fund was established in May 2020 and serves as an AUD denominated Australian unlisted unit trust that feeds into the Oaktree Opportunities Fund XI Feeder (Luxembourg), SCSp (“the Underlying Fund”), a Luxembourg special limited partnership, which will invest substantially all of its assets in Oaktree Opportunities Fund XI (Parallel 2), SCSp in exchange for a limited partner interest therein. LFE European Asset Management S.a.r.l is the alternative investment fund manager (“AIFM”) for the Underlying Fund and the AIFM will appoint Oaktree as portfolio manager.
The Fund has been created to provide qualified wholesale investors with the opportunity to invest in the first close of the Underlying Fund (the “First Close”), and thereby participate in the management fee discount offered to First Close investors (10% reduction in the management fee of the Underlying Fund).
Oaktree was formed in April 1995 and is a leading global investment management firm headquartered in Los Angeles, California, with more than 950 employees throughout offices in 19 cities worldwide. As of March 31, 2020, Oaktree had approximately US$113.3 billion in assets under management.1 Oaktree’s senior executives and investment professionals have focused on less efficient markets and alternative investments for over 34 years. Oaktree emphasizes an opportunistic, value-oriented approach to investments in distressed debt, corporate debt (including mezzanine finance, high yield debt and senior loans), control investing, convertible securities, real estate, listed equities and multi-strategy solutions.
As of March 31, 2020, unless otherwise noted. (1) Includes Oaktree’s proportionate amount of DoubleLine Capital AUM resulting from its 20% minority interest therein. See the Legal Information section of the Appendix in the Oaktree Opportunities XI, L.P. Brochure, March 2020, for important information regarding Oaktree’s calculation methodology for assets under management.