Los Angeles-based Oaktree Capital Management is making an equity investment in casino operator Cannery Casino Resorts. The details of the transaction were not disclosed, but Oaktree now owns an ownership interest, around 33 percent, in the gaming firm.
The deal is subject to approval by the Nevada Gaming Authorities.
Cannery operates the Cannery Casino & Hotel and the Rampart Casino, both considered “local” casinos in Las Vegas. Cannery is also receiving $300 million (€246 million) in senior credit from Banc of America.
“Based on the company’s management and strong operating history, [Oaktree] believe this investment is well-placed to achieve long-term growth,” said Chris Brothers, a managing partner at Oaktree.
Although private equity investments in casinos are rare, other firms are finding value in the gaming sector. Los Angeles-based private equity real estate firm Colony Capital has acquired the Las Vegas Hilton, as well as a portfolio of fours casinos across the US.
Earlier this month, Oaktree teamed up with Goldman Sachs for a $100 million equity investment in Florida-based Spirit Airlines. Last year, Oaktree acquired a controlling interest in the struggling airline for a reported $125 million.
Oaktree’s Principal Opportunities Group manages around $4 billion in private equity investments. Founded in 1995, the firm has $28 billion in assets under management and has additional offices in New York, London, Frankfurt, Singapore and Tokyo.