Our private equity strategy, which we refer to as our "principal opportunities" strategy, grew out of our activities in distressed debt, where some of our earliest purchases created an attractive path to control of fundamentally sound businesses. The strategy has evolved over time and now focuses on domestic and international control investments achieved through purchases of both distressed debt and private equity. We tend not to participate in private equity auctions, but rather seek opportunities that are outside the mainstream due to the particular circumstances affecting the target company, such as management issues or a lack of capital.

"We feel our ability to invest in distressed debt and post-reorganization equity represents a pronounced strategic advantage," says Steve Kaplan, who leads Oaktree's Principal Group with Ron Beck, Jim Ford and Caleb Kramer. "We also make opportunistic private equity investments when market conditions make them most attractive."

"Our approach is flexible and opportunistic," Beck adds, "and benefits from Oaktree's unique access to deal flow. We can make investments of small to large size, in significant blocks or whole companies, and at any level of the capital structure."

Leverage is used to a limited degree. Liquidity and diversification are below the levels of Oaktree's other investment strategies, but we believe the potential returns more than compensate.

Click here for information regarding risk disclosures associated with the strategy.