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LOS ANGELES–(BUSINESS WIRE)–Oaktree Capital Management, LP (“Oaktree”) announced the successful final closing of its third global real estate debt fund, Real Estate Debt Fund III, and its associated vehicles (together, “ REDF III” or the “Fund”). The largest ever fundraising for Oaktree’s real estate debt strategy, closed on December 15, 2021 with total capital commitments of approximately $3 billion, 34% more than its predecessor .
Oaktree’s real estate debt strategy aims to achieve attractive risk-adjusted returns and current income by investing in a broad range of commercial and residential real estate debt opportunities. This market segment is particularly attractive today given the current real estate fundamentals, the attractiveness of real estate in an inflationary environment and the predominantly variable rate nature of the instruments in which the team invests.
REDF III will invest globally in a wide range of opportunities, including commercial and residential first mortgages, mezzanine loans on commercial properties, structured real estate credit and corporate debt linked to real estate. As of December 31, 2021, the Fund had deployed $1.6 billion, representing approximately 55% of its total capital, in investments concentrated in the United States, Europe and Australia.
“This successful closing is a testament to the strength of Oaktree’s real estate debt strategy and the global team we’ve built over the past decade,” said John Brady, portfolio manager and head of global real estate group at Oaktree. “Investors around the world are increasingly seeking exposure to real estate debt because of its potential to offer attractive yields and total returns with less than commensurate risk compared to traditional corporate debt. We are delighted that our investors continue to appreciate Oaktree’s differentiated approach, sourcing prowess and ability to add value in this space.
“The breadth and depth of Oaktree’s experience and the Fund’s flexible mandate allow us to offer our limited partners an all-weather credit strategy. We are focused on private lending and traded debt offering attractive relative value within the real estate sector that compares favorably to the rest of the broader credit landscape,” added Justin Guichard, Managing Director and Co-Portfolio Manager, Real estate debt and structured credit. at Oaktree. “This ability to pivot to the most attractive opportunities available at all times has served us well as markets have changed in 2020 and 2021, and we believe it will continue to be a key driver of success going forward. ”
Oaktree is a leader among global investment managers specializing in alternative investments, with $166 billion in assets under management as of December 31, 2021. The firm emphasizes an opportunistic, value-driven, risk-controlled approach for investments in credit, private equity, real estate assets and listed shares. The company has more than 1,000 employees and offices in 19 cities around the world. For more information, please visit Oaktree’s website at http://www.oaktreecapital.com/.
Oaktree’s real estate debt strategy, launched in 2010 as an extension of its real estate opportunities strategy, adheres to Oaktree’s investment philosophy of risk control, consistency and credit analysis granular. As of December 31, 2021, Oaktree’s real estate group had $16 billion in assets under management across its opportunistic, debt and income strategies. The team is made up of 54 professionals and the management team has an average of 26 years of real estate investment experience.
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Source: Oaktree Capital Management, LP