Oaktree Capital Management is looking to raise more than $18 billion in what would be the largest-ever private credit fund, according to people with knowledge of the matter.

The $179 billion alternative investment manager is raising a 12th fund, called the Oaktree Opportunities Fund XII, for its opportunistic credit strategy, said the people, who asked not to be identified because they’re not authorized to speak about it.

Fundraising expectations could still change based on investor demand and economic conditions. A representative for Oaktree declined to comment.

It’s the latest example of the booming private credit market with investors eager to snap up rich returns in an area previously ruled by Wall Street banks. Oaktree, an early pioneer of distressed debt investing, says its opportunistic credit strategy is designed to generate returns from a wide range of private investments. The fund managers specialize in buying claims on discounted assets and are active in corporate debt restructurings.

In the second quarter, there were 34 new private credit funds that raised about $71 billion, more than double the previous three months, according to data from industry research firm Preqin.

The firm has already raised $3 billion for the Oaktree Opportunities Fund XII and it is now able to begin investing, according to a statement on Wednesday from parent company Brookfield Asset Management.

“A pullback by traditional lenders is opening the window for more capital deployment,” Bahir Manios, the chief financial officer at Brookfield, said yesterday.

Brookfield also reported that Oaktree’s new direct lending vehicle had raised $3.3 billion as of the second quarter. It has previously said it’s targeting $10 billion at close.

If Oaktree Opportunities Fund XII surpasses $18 billion, it would be the largest private debt fund of all time, according to data from Preqin. That’s excluding the European Investment Fund, which is technically larger, but government-sponsored.

While there are larger examples of business development companies, or non-traded BDCs that provide direct corporate lending, those are not classified as closed-end private debt funds.

There have been other massive private credit fundraisings this year. HPS Investment Partners recently closed a junior debt fund with $17 billion of available capital. In June, Ares Management Corp. raised $8.7 billion in the first round for a European direct lending fund.