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Oaktree to raise $10 billion for distressed fund: Report

Howard Stanley Marks
Scott Eells | Bloomberg | Getty Images

A major investment firm is getting ready for the next market downturn by trying to amass a huge pool of capital for distressed investments.

Oaktree Capital Group, the more than $91 billion private investment firm that specializes in the debt of troubled companies, is seeking $10 billion for a new fund, according to Bloomberg.

Oaktree, led by chairman Howard Marks and president and chief investment officer Bruce Karsh, plans to raise $3 billion that it can invest immediately and $7 billion to use for distressed bets as opportunities appear.

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Inside Howard Marks' strategy

The $3 billion Oaktree Opportunities Fund X will take non-control positions in corporate debt, shipping, power plants and real estate, Bloomberg said.

A spokesman for Oaktree declined to comment to on the report.