China Investment Corporation (CIC), the $300 billion sovereign wealth fund, has agreed to invest about $1 billion in Oaktree Capital Management – reported The Wall Street Journal.
Reportedly, the Los Angeles-based Oaktree, which has more than $60 billion in assets, is expected to use the Chinese sovereign investment fund’s money to invest in distressed debt and other fixed income assets over a period of time.
Of late, CIC has emerged as the most active government investment fund, investing portions of its $300 billion portfolio in deals as diverse as natural resources and real estate, to capitalise the upside of what analysts expect to be a global rebound.
Earlier this year, CIC invested $1 billion through two funds of hedge funds run by Blackstone Group and Morgan Stanley. Besides these two, Capula Investment Management, the London-based hedge fund, had also received $200 million from CIC. It is now planning to invest another $2 billion directly into other hedge funds. The funds that are expected to receive CIC money include Winton Capital Management, Lansdowne Capital, Och-Ziff Capital Management and Canyon Partners, reported the newspaper.
