Oaktree Chairman Talks Hurdles As Fund VI Launches

  • Firm promises LPs preferred return
  • 8 percent hurdle rate
  • Interest rates are low

As Oaktree Capital Group LLC gears up for its next control investing fund, its chairman joined a small but growing chorus of general partners complaining about generous preferred returns for investors. However, he acknowledged such fundraising provisions are unlikely to swing back the GPs’ way any time soon.

“You could make an intellectual case than an 8 percent preferred return is too high in this low-return world,” Howard Marks, Oaktree’s chairman, said on a conference call with analysts to discuss fourth -quarter earnings that almost tripled from a ...

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