Oaktree Capital Management held a first and final closed for its second Enhanced Income Fund in April, according to a first quarter earnings report released Thursday. The fund, which is set to reach $2.2 billion including leverage, will target investments in senior loans.
The firm raised $3 billion in gross capital commitments during the quarter, which includes the close of a $517 million CLO.
“On to senior loans, which we identified as a growth priority a few years ago and in which we have expanded our offerings from unlevered senior loans, [starting] in 2008, to our moderately levered Enhanced Income Fund, launched in 2012, to more levered CLOs which have just begun this year,” said managing principal John Frank during an earnings call. “In the first quarter we closed a $500 million CLO, and in April we held our first and only close for our second Enhanced Income Fund, which will total $2.2 billion including leverage.”
In addition to its senior loan strategies, Oaktree also announced $794 million in total capital commitments its real estate debt strategy. The firm is currently marketing Oaktree Mezzanine Fund IV, Oaktree Value Equity Fund and Oaktree Principal Fund VI, and expects to raise new real estate opportunities funds in the near future.
“We have begun fundraising for our newest mezzanine fund and are continuing to raise our newest principal fund. Both of those strategies still have capital to deploy in their existing funds so we expect fundraising to continue for some time. As I indicated last quarter, our real estate and distressed debt teams are finding opportunities at a faster clip than we initially anticipated,” Frank said. “Our current real estate fund, ROF VI, as of March 31 was over 75 percent committed, and Opps IX, our latest distressed debt fund was 60 percent committed. Thus, we anticipate beginning to raise their successor funds later this year.”
Oaktree’s assets under management climbed to $86.2 billion during the quarter, an all-time high, according to a press release.
“Strong investment returns and continued inflows for our newest investment strategies brought assets under management and management fee-generating assets under management to record highs in the first quarter,” said Howard Marks in a statement.