How Oaktree's Head of Sourcing Finds the Next Great Deal

Bullish:

• $PRIVATECREDIT - Regulatory changes post-Dodd-Frank have created opportunities in private credit as banks have reduced leverage, opening up space for alternative lenders.

  • “Post what Dodd Frank did effectively is said, okay, banks were levered roughly 30 times pre global financial crisis post their 15 times levered. Right? So once you shrunk that liquidity or capital out of the banks, they can no longer absorb the deals.”

    Millwood·14:42
• $RELATIONSHIPS - Building strong, balanced relationships is crucial in deal-making, aiming for outcomes where both parties are satisfied without feeling they've lost.

  • “The goal is no one really should win. Both parties should be just mildly annoyed. And how do you do that? You do it in a smooth relationship.”

    Millwood·7:14
• $ABF - Asset-based finance is seeing renewed interest, with significant potential due to large amounts of private equity dry powder available.

  • “There's ABF, asset based finance, which is a new phenomenon, which isn't really new. Right? GE Capital was a large ABF lender. But there's $3,000,000,000,000 of dry powder at private equity firms.”

    Millwood·48:32