Oaktree Closes Eighth Real Estate Opportunities Fund at $4.7 Billion

Rhea-AI Summary

Oaktree Capital Management has successfully closed its Real Estate Opportunities Fund VIII with approximately $4.7 billion in total capital commitments, exceeding its original $3.5 billion target. This marks Oaktree's largest real estate fundraise to date. The Fund has invested about $1.7 billion, or 40% of its capital, in distressed real estate-related securities and rescue financings during the Covid-19 pandemic. Oaktree manages over $11 billion in real estate assets, utilizing a diverse investment strategy.

Positive

• Fund VIII raised approximately $4.7 billion, exceeding the $3.5 billion target.
• The Fund has already invested about $1.7 billion (40% of capital) in distressed securities and rescue financings.

Negative

• None.

Oaktree Capital Management, L.P. (“Oaktree”) today announced the successful final close of Oaktree Real Estate Opportunities Fund VIII and related vehicles (“ROF VIII” or the “Fund”), with total capital commitments of approximately $4.7 billion. ROF VIII is the largest Oaktree real estate fundraise to date, meaningfully exceeding its original target of $3.5 billion.

“The Covid-19 pandemic has created a compelling set of credit-focused investment opportunities for our fund,” said John Brady, Portfolio Manager and Head of the Global Real Estate group. “We’re very thankful for the support and confidence we’ve received for our opportunistic, yet risk-controlled approach to investing.”

To date, the Fund has invested or committed approximately $1.7 billion, or about 40% of its capital, in a combination of purchases of distressed real estate-related securities made early in the pandemic and, more recently, relationship-based “rescue” financings for public and private real estate lenders and owners experiencing problems with their leverage.

Oaktree’s real estate strategies, with over $11 billion in assets under management as of December 31, 2020, target a diverse range of investments across the real estate risk and return spectrum, including performing debt, core-plus and opportunistic strategies. With 59 dedicated real estate personnel in the U.S., UK, Hong Kong, Korea, Australia and Japan, Oaktree’s Real Estate team benefits from the firm’s multi-disciplinary strengths and global footprint.

About Oaktree

Oaktree is a leader among global investment managers specializing in alternative investments, with $148 billion in assets under management as of December 31, 2020. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,000 employees and offices in 19 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210323005393/en/

FAQ

What is the total capital raised by Oaktree for Fund VIII?

Oaktree raised approximately $4.7 billion for its Real Estate Opportunities Fund VIII.

How much of Fund VIII's capital has been invested?

Approximately $1.7 billion, or 40% of Fund VIII's capital, has been invested.

What was the original target for Fund VIII's capital commitments?

The original target for Fund VIII's capital commitments was $3.5 billion.

What types of investments has Fund VIII made?

Fund VIII has invested in distressed real estate-related securities and rescue financings.

What is Oaktree's total assets under management?

Oaktree has over $148 billion in assets under management as of December 31, 2020.