Oaktree’s new Inter stewardship hands the firm one of the sport’s most recognizable brands. The club’s transition, however, is perhaps more meaningful for Suning and its ambitious chairman Zhang Jindong—the latest high-profile retreat for the struggling Chinese retail conglomerate.

The group acquired a majority stake in the club in 2016 for €270 million as part of a wave of Chinese investment in European soccer. At the time, Zhang declared the acquisition would “raise the standards of local football, and also raise Suning’s profile as it expands globally.”

Since the purchase, Zhang has instead been forced to weather China's property market downturn, the pandemic, and a failed €20 billion investment in the now-bankrupt China Evergrande Group. His personal net worth has fallen from a peak of $6 billion to near-zero, according to Bloomberg’s Billionaires Index, which notes that most of Zhang’s assets are currently pledged as collateral.

In 2021, Oaktree stepped in to provide a €275 million emergency bridge loan to Suning, which was struggling to keep Inter afloat through the pandemic.

That financing, secured against Suning's stake in the club, has now matured into a €400 million liability. Despite frantic efforts to negotiate a rescue deal with bond giant Pimco, talks fell short, and Zhang was forced to hand over the keys.

In a strongly worded statement over the weekend, Inter Milan President Steven Zhang, the 32-year-old scion of Suning's founder, accused Oaktree of undermining attempts to "find an amicable solution" and acting in a manner that "could seriously jeopardize the club's stability."

"As of May 22, funds managed by Oaktree Capital Management have assumed ownership of FC Internazionale Milano," Oaktree said in a statement on Wednesday. "This follows the non-repayment of Oaktree's three-year loan to Inter Milan's holding companies that matured on 21 May with a total balance due of approximately €395m."

The statement also said that Oaktree's "initial focus is on operational and financial stability for the club and its stakeholders." Alejandro Cano, a managing director at Oaktree, added: "We are committed to the long-term success of the Nerazzurri and believe our ambitions for the club are united with those of its passionate fans in Italy and around the world."

A source close to the matter, cited by The Financial Times, said Oaktree wasn’t anticipating an ownership transition. Suning had hired Raine Group and Goldman Sachs 18 months earlier to find an exit that could still salvage some value for the distressed group, though no actionable buyers emerged.

Cross-town rival AC Milan was purchased by RedBird Capital in 2022 for $1.2 billion, and Inter was expected to command a similar valuation.

Though the firm’s new asset may be a surprise, the same source said Oaktree was “in no rush to sell the club” — “We are patient investors … we’re planning to invest time and effort.”

Still, the takeover raises questions about Oaktree's long-term plans for Inter, one of Europe’s highest-profile clubs, with 36 domestic trophies and three European Cups to its name.

In the near term, the focus will be on maintaining the club’s stellar performance—investments in on-field talent—while also adequately managing the €415 million in still outstanding high-yield bonds backed by the club’s media rights.

On Sunday, Inter secured its 20th Serie A title after closing out the season with a 2-2 draw at Verona.