Brazilian Investors Flock to Oaktree's Credit Fund Amid Local Market Volatility

Oaktree Capital Management expects to see a boom in resource collection in Brazil as local investors seek to diversify their portfolios and avoid volatility in domestic assets. The firm's credit strategy in Brazil grew 70% last year, reaching R$1.8 billion, and the number of clients increased by 25% to 13,000. The feeder fund for Brazilian clients is expected to reach R$10 billion in the next year and a half. Oaktree plans to continue working through its local partner, Gama Investimentos, and does not intend to open an office in Brazil.

Brazil's economic landscape is undergoing a significant shift, with local investors increasingly seeking to diversify their portfolios and minimize volatility in domestic assets. This trend has not gone unnoticed by global investment firm Oaktree Capital Management. The firm, known for its expertise in alternative investments, expects to see a surge in resource collection in Brazil.

Oaktree's credit strategy in Brazil experienced a remarkable 70% growth last year, reaching R$1.8 billion. The number of clients also increased by 25% to 13,000. These figures underscore the growing demand for Oaktree's services in the Brazilian market [1].

The firm's Brazilian feeder fund is expected to reach R$10 billion in the next year and a half. Oaktree plans to continue its collaboration with local partner, Gama Investimentos, and does not intend to open an office in Brazil [1].

Brazil's economic instability and political uncertainty have long made it a challenging market for foreign investors. However, Oaktree's success in Brazil demonstrates that there are opportunities to be found, particularly for investors with a long-term perspective and a deep understanding of the local market.

Oaktree's expertise in alternative investments, including credit, private equity, real estate, and listed equities, positions it well to capitalize on these opportunities. The firm's global footprint, multi-disciplinary capabilities, and extensive network of industry experts enable it to navigate Brazil's complex economic and political landscape [1].

Moreover, Oaktree's commitment to risk management is particularly relevant in the Brazilian context. The firm's mission is to deliver superior investment results with risk under control and to conduct its business with the highest integrity [1].

In conclusion, Oaktree Capital Management's growing presence in Brazil is a testament to the firm's expertise in alternative investments and its ability to navigate complex economic and political environments. As local investors continue to seek diversification and risk management solutions, Oaktree is well-positioned to capitalize on the opportunities presented by the Brazilian market.

References:

[1] Oaktree Capital Management. (n.d.). Brazil. Retrieved September 13, 2022, from https://www.oaktreecapital.com/brazil