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The new fund, known as Oaktree Lending Partners, may tap into bank loans to ultimately invest $20 bln in sponsor-backed debt, the report said.
The fund’s launch comes at a time when global banks have been reluctant to lend amid rising fears of a recession.
The credit investment manager plans to raise and invest the $10 billion within the next two years, FT reported.
Oaktree expects to offer loans of about $500 million or more to leveraged buyout groups, the newspaper said.
The company and asset management firm Brookfield, which owns a majority stake in the investment firm, will invest $2 billion in the new fund, the report added.
Oaktree Capital and Brookfield did not immediately respond to a request for comment.
