Oaktree said Highstar’s infrastructure investment strategy was complementary to its Power Opportunities strategy, which targets companies that support energy and utility infrastructure.
Highstar, which invests in the physical infrastructure itself, will become part of the Power Opportunities unit heading by Ian Schapiro.
Oaktree managing principal John Frank said, “We believe that the aging nature of global infrastructure and the move toward public-private partnerships are creating opportunities for experienced and knowledgeable investors to source investments that will benefit the infrastructure system.
“Highstar is a pioneer in infrastructure investing, and a leader in US energy infrastructure, waste management and transportation public-private partnerships – a skill set that is highly complementary to Oaktree’s Power Opportunities strategy.
“Furthermore, Highstar’s long-term, value-oriented and risk-controlled investment approach is fully consistent with the Oaktree investment philosophy.”
The transaction is expected to close in the third quarter of 2014, at which point Oaktree will become the manager of Highstar Fund IV, which had $2.3bn of assets under management at the start of 2014.
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