Oaktree Capital Management has raised $3bn (€2.6bn) for its third debt fund.
The manager said the amount raised for Real Estate Debt Fund III (REDF III) is 34% higher than its predecessor fund.
Oaktree’s REDF III fund will invest globally in a wide range of opportunities, including commercial and residential first mortgages, commercial property mezzanine loans, real estate structured credit and real estate-related corporate debt.
The manager said the fund has already deployed $1.6bn of its total capital, in investments concentrated in the US, Europe and Australia.
John Brady, portfolio manager and head of the global real estate group at Oaktree, said: “Investors around the world increasingly want exposure to real estate debt due to its potential to offer attractive yields and total returns with less-than-commensurate risk relative to traditional corporate debt.
“We’re delighted that our investors continue to appreciate Oaktree’s differentiated approach, sourcing prowess, and ability to add value in this space.”
Justin Guichard, managing director and co-portfolio manager, real estate debt and structured credit at Oaktree, said: “Oaktree’s breadth and depth of experience and the Fund’s flexible mandate allow us to offer our limited partners an all-weather credit strategy. Our focus is on private loans and traded debt securities offering attractive relative value within the real estate industry that compare favorably with the rest of the broader credit landscape,”
“This ability to pivot to the most attractive opportunities available at any given time served us well as markets shifted in 2020 and 2021, and we believe it will continue to be a key driver of success going forward.”
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