(Reuters) - Oaktree Capital Management placed an investment stake in Australian drilling services company DDH1 Drilling Pty Ltd, the drilling company announced in a statement on Sunday.
DDH1 describes its business as a provider of deep directional mineral drilling services used to identify and extend resources, reserves and mining plans for Australia’s exploration and mining industry. The terms of the investment were not disclosed.
Los Angeles-based Oaktree Capital is a global asset management firm that specializes in distressed debt and corporate debt with $100 billion of assets under management, according to the company’s website.
DDH1 co-founders Murray Pollock and Matt Thurston will remain in their roles as chief executive and chief operating officer, respectively, according to a statement released by the company.
“Throughout the recent mining downturn, there has been significant underinvestment in the capacity of the Australian drilling services industry due to low demand, competitive pricing and numerous insolvencies,” said Byron Beath, managing director at Oaktree. “During this period, DDH1 has continued to invest in its capacity and has consolidated its market-leading position in its targeted service. Oaktree’s investment will further enable DDH1 to grow to meet the demand from its customers.”
Reporting by Dion Rabouin; Editing by Sandra Maler