Oaktree-Backed Commodities Trader in Talks to Sell Minority Stake
(Bloomberg) -- Oaktree Capital Management LP is in talks to sell a minority stake in Hartree Partners LP, the commodity house it first invested in a decade ago and has since helped grow into a global trading powerhouse.
Oaktree has started speaking with outside investors, according to people familiar with the matter, who asked not to be identified because the information is private. The potential sale follows the need for some legacy Oaktree funds invested in Hartree Partners to exit their positions, they said.
The discussions are happening during a pivotal time for energy-focused Hartree Partners, which is making a major push into agricultural commodities and metals. The firm recently purchased ED&F Man, which is best known for trading sugar and coffee, and is in exclusive talks to acquire French cocoa trader Touton SA.
Founded in 1997 by former Goldman Sachs Group Inc. energy traders, Hartree Partners is also in the beginning stages of its first leadership transition. In a memo earlier this year to staff, which was described to Bloomberg, the firm’s founders said that Paul Garske and Jason Lemme would assume greater leadership responsibilities as part of preparations for an eventual succession.
Discussions about the potential sale are in early stages and could still fall through, but Oaktree is looking for an anchor buyer to help set the price, and smaller investors could join alongside, one person said.
A spokesperson for Oaktree and Hartree Partners declined to comment.
Hartree Partners began as HETCO, a joint-venture between its founders — Stephen Hendel, Stephen Semlitz and Guy Merison — and oil major Hess Corporation. The firm spun out in 2015, when Oaktree acquired Hess’s stake. Since then, it has become a key player in the US and European gas and power markets, and in 2020 launched a carbon trading unit.
Oaktree’s intention to sell a stake in Hartree Partners was initially reported in May by PeakLoad.
(Updates with details on potential for an anchor buyer and smaller investors in paragraph five.)
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