Oaktree raises $1.1bn for real estate debt fund

Teachers' Retirement System of the State of Illinois provided a $100m commitment.

Oaktree Capital Management has raised a total of $1.1 billion in capital for its real estate debt fund, according to regulatory documents filed on Friday.

The Oaktree Real Estate Debt Fund II has pulled in at least 33 investors since launching last year, the US Securities and Exchange Commission filing shows. Details on the investments or funding terms were not disclosed.

The firm declined to comment.

Teachers' Retirement System of the State of Illinois provided a $100m commitment to the fund, according to PDI data.

The Los Angeles-based asset manager closed the previous real estate debt fund on $1.12 billion in October 2016, according to Oaktree’s latest earnings results. The results showed a since-inception net internal rate of return of 25.9 percent for the fund at the end of last year.

Oaktree Real Estate Debt Fund I surpassed its original target of $1 billion, garnering a $100 million commitment Teachers' Retirement System of the State of Illinois, along with $75 million each from the Orange County Employees Retirement System and the Wyoming Retirement System, PDI data shows.

The firm’s real estate debt strategy invests in debt that is not expected to result in control of the underlying asset, the company’s website states. The strategy includes commercial mortgage backed securities, commercial and residential mortgages, mezzanine loans, and corporate debt.

Oaktree’s real estate debt portfolio totaled $1.48 billion in assets as of 31 December, the earnings results show, compared with the asset manager’s total assets under management of $101 billion.

EDITOR'S NOTE: An original version of this article misstated the total amount raised as $694.39 million.