Banca Progetto, owned by Oaktree, placed under special administration in Italy

The Bank of Italy has placed Banca Progetto, a small privately held lender owned by Oaktree Capital Management, under special administration and appointed independent administrators to manage the institution.

This "early" intervention, which resulted in the dissolution of the board, aims to ensure adequate supervision of the bank's operations and restore sound management practices. Banca Progetto issued a statement regarding these developments.

A spokesperson for Oaktree confirmed that the investment firm is engaged in close and constructive dialogue with the Bank of Italy about Banca Progetto. Oaktree is committed to working actively with the extraordinary commissioners to maintain confidence among customers and stakeholders.

In October, Banca Progetto was placed under scrutiny for allegedly lending money to an individual arrested on mafia charges, asserting at that time that it was "an offended party in the affair."

Last year, Oaktree initiated a transaction focused on lending to small- and mid-sized Italian businesses, involving funds managed by private equity firm Centerbridge Partners, although the deal was never finalized.