Oaktree Capital Management has closed its third special-situations fund to invest in midmarket companies struggling with high debt or other financial challenges.

Oaktree wrapped up fundraising for its Special Situations Fund III with about $3 billion, including commitments to related vehicles, people familiar with the matter said. The sum exceeds the Los Angeles firm’s initial target of $2.5 billion and the $2.3 billion raised by a 2018-vintage predecessor fund, the people said.