Oaktree Capital Management is raising capital for its fourth Special Situations Fund, aiming to secure around $4bn to invest in distressed debt, structured equity, and direct equity, Bloomberg has reported.

The fundraise comes at a time of rising global trade tensions and escalating tariffs, which are placing pressure on supply chains and corporate margins. According to sources, the two previous funds in the series each achieved a net internal rate of return of approximately 30%.

The strategy is overseen by Matt Wilson and Jordon Kruse. Oaktree declined to comment on the fundraise.

The firm’s current investments include Australian Alternative Asset Partners, US-based City Brewing Company, and global healthcare business GenesisCare.

If successful, the vehicle would extend Oaktree’s position in the special situations space, with the new fund exceeding the $3bn raised by its predecessor.