Howard Marks’ special opportunities fund chases Australian dollars

afr.com:

Something has finally come from Howard Marks’ trip Down Under, some 11 months after the legendary investor arrived from the United States.

Street Talk can reveal Oaktree Capital Management, where Marks is co-chairman, has partnered with Sydney fundraising firm Spire Capital to launch the Spire Oaktree Special Opportunities Fund, bringing the investment giant’s opportunistic credit and special situations strategy to local wholesale investors for the first time.

Oaktree’s Howard Marks. Louise Kennerley

Spire operates a feeder fund model for global private market strategies. It has been in partnership with Oaktree since 2020, and led to Spire raising more than $340 million from wealthy Australians for the investment firm’s strategies.

“The [Spire Oaktree Special Opportunities] Fund is focused on bargain hunting, the outlook for which is much improved,” Marks said in a memo seen by Street Talk. “Bargains generally result from investor disillusionment and the potential for this – like the level of interest rates – is more in the investor’s favour than was the case in recent history.”

Oaktree specialises in investing in distressed companies that have too much leverage. The investment firm has been getting more active in the local market, spotted around cancer care provider GenesisCare and Star Entertainment Group’s refinance (alongside Bain Capital).

The launch comes after Marks touched down on Australian shores late last year to reel in Australian investor dollars for its managed funds. Spire facilitated the meetings, mostly with family offices and high-net-worth types for a “fireside chat” with Marks in Sydney and Melbourne.

Oaktree manages $US172 billion ($265 billion) across its stable of funds with more than $US48 billion