Oaktree raises $4.7bn for eighth real estate opportunities fund

Oaktree raises $4.7bn for eighth real estate opportunities fund

Oaktree Capital Management, L.P. has raised $4.7 billion for its Oaktree Real Estate Opportunities Fund VIII (ROF VII), exceeding the original target of $3.5 billion.

Oaktree said ROF VIII is the largest Oaktree real estate fundraise to date.

“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.