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Oaktree ramping up infrastructure funds in '18 as Washington weighs proposals

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Oaktree ramping up infrastructure funds in '18 as Washington weighs proposals

Oaktree Capital Group LLC is looking to boost its infrastructure investment funds in 2018 as lawmakers weigh proposals to pour billions of dollars into the country's roads, bridges, railways and other projects.

Executives on the company's 2017 fourth-quarter earnings call expressed support for plans in Washington to invest as much as $1.5 trillion in domestic infrastructure projects.

CEO Jay Wintrob said the company "re-positioned" specific infrastructure offerings into sector-focused funds in transportation and energy in 2017 and will continue to pursue more opportunities across the country.

"The talk in Washington about investing more and repairing our infrastructure is obviously something that we are supportive of," Wintrob said. "And we're especially focused on the transportation sector: airports, roadways [and] seaports."

Wintrob said the company has teams of experts and advisers laying the groundwork for deals and investments where projects are most likely to materialize, since the lead times for infrastructure projects are often years long.

In addition to infrastructure investments, the company is ramping up fundraising in real estate, emerging markets debt and direct lending, which have potential for "significant future expansion," Wintrob said.

Wintrob said those strategies' assets under management have grown from $6 billion to almost $25 billion in the last five years. In addition, Oaktree currently has about $20.5 billion in dry powder to invest if the market downturns or if there are company-specific developments, Wintrob said.