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CNBC's Gasparino: Oak Tree Plans to Sell Stake to Investors

Oak Tree Capital Management is the latest hedge fund to be preparing to sell a stake to outside investors, CNBC has learned.

Oaktree is one of the most reclusive and profitable hedge funds around. It specializes in buying distressed debt--so it is also known as a vulture investor. It has $30 billion under management and returns are estimated in the 30% area.

The fund has retained Goldman Sachs to issue shares in what's known as a 144a-private placement, meaning that only institutional investors can buy the shares. The fund plans to sell a 10% to 20% stake.

Other hedge funds like Apollo Management are considering issuring shares privately and then registering them in the public markets. But Oak Tree has told its bankers it will never list the shares publicly.

Oak Tree's plans show that pressure is growing on hedge fund and private equity players to raise capital any way they can to keep expanding and to retain talented money managers.

Oak Tree declined to comment.