Oaktree Says Exposure to Software Firms, Direct Lending Is Small

Oaktree Capital Management assured clients its exposure to software companies and direct lending remains limited, as global private credit funds retreat from areas showing heightened risk.

Co-founder Howard Marks wrote in a note on Thursday that its credit exposure to software is “extremely small on an absolute basis and relative to peers.”

He added that Oaktree’s “direct lending portfolios generally have limited software exposure,” and over the last 12 to 18 months the firm has maintained “a particularly high bar” for participating in new software transactions.

Some private credit funds have been turning away software borrowers as they seek to ...