Oaktree Challenges Rivals Over $6bn Private Equity Debacle
Oaktree's Stance on Private Equity Oversight
In a recent letter to investors, Oaktree Capital Management, a prominent distressed debt specialist, publicly criticized Advent and Silver Lake for their management of Thrasio, an ecommerce start-up that was once valued at $6bn but ultimately went bankrupt. Co-founder Bruce Karsh expressed that their trust was misplaced, and the firm has since written down its investment to zero.
The Collapse of Thrasio
- Founded in 2018 to roll up Amazon marketplace sellers.
- Secured significant financing from multiple venture partners.
- Expansion efforts saw rapid acquisitions fueled by pandemic-driven online shopping.
- Reported bankruptcy in February after market pressures.
The fallout from Thrasio's downfall also raises questions about the strategies employed by its backers, suggesting a need for deeper scrutiny in private equity investments and decisions.
Impacts on the Private Equity Landscape
This critique coming from such a significant player in the financial markets highlights the often-guarded nature of relationships within private equity. As deals collapse, firms may have to reevaluate their operational strategies and partnerships.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.