Oaktree Capital Management funds have acquired Xenia Capital, an Iberian alternative real estate financing company.
The deal involves Oaktree acquiring Xenia and its existing loan portfolio from Pacific Investments for an unspecified amount. Xenia’s chief executive officer, Rory Buchanan, and managing partner, Gonzalo Barrios, will retain equity stakes in the business.
Xenia said it has also secured a €200m senior loan facility from JP Morgan to help expand the platform, and fund both existing and new investments.
Xenia has a presence in the Iberian market, financing real estate developments across locations including Madrid, the Costa del Sol and Barcelona. Xenia’s portfolio includes a diverse range of assets including build-to-rent, residential, co-living and five-star hotels in major tourist hotspots.
The transaction expands on the existing relationship between Oaktree and Xenia, which previously involved a three-year joint venture in Spain where over €220m was committed.
Nael Khatoun, portfolio manager within Oaktree’s European private debt strategy, said: ”This transaction is a testament to the strength of the partnership between both of our teams and is a natural next step in our collaboration. We are highly optimistic about private credit opportunities in Europe and firmly believe in the growth potential of the Xenia platform.
“The transaction cements our strong position in Iberian real estate and we look forward to working with the Xenia team to build on our successes to date.”
Buchanan said: “Having built one of the most reputable alternative lenders in the Iberian market, we will now be able to leverage Oaktree’s private credit experience to significantly scale the business.
“We look forward to building on our initial success with Oaktree, and with fresh capital resources, we are well-positioned as we enter this next phase of growth. I would like to thank the Beckwith family for their partnership and support over the years in making Xenia the strong, rapidly growing credit platform it is today.”
Piers Beckwith, co-CEO of Pacific Investments, said: “We are proud founders of Xenia and are delighted with the business’s success, becoming a leading private capital solutions provider for the Spanish real estate sector.
“We believe Oaktree is the right partner to scale the group and we wish the team and business every success as they begin this new chapter.”
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