Distressed asset investment fund launched

distressed assets investment fund

Two investment management firms have joined forces to provide Australian investors with opportunities to invest in distressed assets and company turnarounds.

Private markets investment manager Spire Capital has partnered with alternative assets firm Oaktree Capital Management to introduce an opportunities fund aimed at providing Australian wholesale investors with access to investments focused on distressed assets and company turnarounds.

The Spire Oaktree Special Opportunities Fund originates from a partnership established in 2020 when Spire allocated over $340 million to Oaktree’s credit strategies on behalf of Australian investors.

In a recent memo addressed to Spire investors, Oaktree co-founder Howard Marks outlined the fund’s investment strategy, which includes a global outlook, a focus on special situations and a pursuit of value opportunities within the market.

“All three provide us with the broad charter and flexibility that are prerequisites for investment success. In addition, all three are focused on bargain hunting, the outlook for which is much improved,” Marks said.

“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.”

He also pointed out the current climate offers promising opportunities for credit investments due to recent interest rate increases and reduced optimism, which have tightened yield spreads.

Spire director and head of investments Stuart Haigh noted the timing for the collaboration was optimal and expressed his enthusiasm regarding the move.

“We are delighted to be expanding the partnership with Oaktree at a time when the opportunity set is expanding rapidly,” Haigh said.

“In monitoring credit markets alongside Oaktree, we have observed a clear pattern for over-leveraged companies. With a global network, deep restructuring expertise and a wide range of flexible lending solutions, Oaktree has proven to generate strong returns through the cycle, particularly in times of distress.”

The Spire Oaktree Special Opportunities Fund is currently open for applications and is set to close on 17 November. It has received a superior rating from SQM Research and is accessible through investment platforms such as Netwealth, Hub24 and Macquarie Wrap.


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