Private Equity IPO Filing for Oaktree Capital Group (OAK)

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Oaktree Capital Group, LLC has filed to come public in an initial public offering.  No financial terms were given but the firm did initially note a sale of up to $100 million in securities (Class A Units representing LLC interests).  The organization plans to list its units on the New York Stock Exchange under the ticker “OAK.”  Goldman Sachs and Morgan Stanley have so far been named the only underwriters in the syndicate.

If this comes to market, it will be yet another private equity group that is able to list as a public entity.  Oaktree has over 600 employees and more than $80 billion under management or advisory.  It is roughly 40% into distressed debt assets, followed by about 18% under control investing and another 25% or so under corporate debt.

Assets under management are structured about 65% in closed-end funds, which it noted that its internal rate of return was just over 20% on more than $50 billion in drawn assets.  The outfit also claims to have 69 of the 100 largest pension plans as clients as well as six of the top ten sovereign wealth funds.

Management fees in 2010 were about $750 million, with about half being fee-related earnings.  Total revenue in 2010 was about $1.3 billion with net income of almost $764 million.

The Full SEC Filing is here.

JON C. OGG