Oaktree Capital Management announced this week that it has raised $4.7 bn (€4 bn) at the final close of its Real Estate Opportunities Fund VIII, exceeding its original target of $3.5 bn.
ROF VIII is the largest Oaktree real estate fundraise to date, the company added.
‘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 $1.7 bn, 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. The fund invests across the globe including in Europe.
Oaktree’s real estate strategies, with over $11 bn 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.
