Oaktree reports positive results, fundraises

Oaktree Capital Management revealed it has held a first close on its ninth Opportunities fund with $1.2 billion on its way to a $4 billion target. The fund, according to Oaktree, is not expected to commence the investment period until 2013.

Oaktree reported the first close in its first quarter earnings statement, the first the firm has published since going public in April at $43 per share. Oaktree’s shares were trading at $41.25 late Friday afternoon. The firm reported economic net income, a measure that includes realised and unrealised gains, of $278.4 million.

While the initial public offering was viewed as disappointing in terms of the debut price, which came in at the low end of the firm’s expected range for its shares, Oaktree had some positive numbers to report in the filing.

Revenues were $318.3 million, led by management fees of $191.3 million resulting in adjusted net income of $173.6 million. Management fees produced fee-related earnings of $80.3 million and $137.3 million of distributable earnings.

Economic net income, a measure that includes both realised and unrealised investments, was $278.4 million for the first quarter, according to the firm. Oaktree’s funds generated incentives of $265.2 million, driven by the performance of distressed debt funds that rose with rebounding credit markets.

“The first quarter demonstrated the ability of our business to generate meaningful cash earnings and quarterly distributions, and at the same time to add significantly to accrued incentives and raise capital for future deployment,” Howard Marks, chairman of Oaktree, said in a statement.

“Our diverse investment strategies and the large proportion of our assets that consists of liquid securities enabled us to capitalise on opportunities both to invest, as we did in real estate, and to sell in strong markets, as our distressed debt funds did,” he said.