Oaktree Cashes in on Private Equity Surge

Meanwhile, the transformation of capital markets proceeds apace. Last week, the press reported that Oaktree Capital Management LLC, an alternative investment firm that had US$40 billion in assets under management, had sold around 14% of itself for more than US$800 million. There were fewer than 50 buyers.

Oaktree is only one more firm cashing in on the surge in private equity. There was Fortress Investment Group’s public offering before it, with Blackstone’s yet to come.

Oaktree’s shares will trade on a new private market developed by Goldman Sachs, “GS Tradable Unregistered Equity OTC Market.” GSTrUE, as it’s fashionably known, has not been publicised by the secretive Goldman, but reports suggest that it is on track to become an alternative exchange for hedge funds and other big players.

It seems that you only need US$100 million in spare change for investment and a hankering to elude SEC oversight…We think we smell the exciting aroma of a new trend here.

Bill Bonner
Markets and Money

Bill Bonner

Bill Bonner

Since founding Agora Inc. in 1979, Bill Bonner has found success and garnered camaraderie in numerous communities and industries. A man of many talents, his entrepreneurial savvy, unique writings, philanthropic undertakings, and preservationist activities have all been recognized and awarded by some of America’s most respected authorities. Along with Addison Wiggin, his friend and colleague, Bill has written two New York Times best-selling books, Financial Reckoning Day and Empire of Debt. Both works have been critically acclaimed internationally. With political journalist Lila Rajiva, he wrote his third New York Times best-selling book, Mobs, Messiahs and Markets, which offers concrete advice on how to avoid the public spectacle of modern finance. Since 1999, Bill has been a daily contributor and the driving force behind Markets and Money.

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