Oaktree closes private debt fund at €1.2b

Oaktree Capital Management has closed its European Capital Solutions Fund III (ECS III) at €1.2 billion ($1.3 billion), according to reports.

The private debt fund provides debt financing to non-sponsor, middle-market borrowers across Europe.

IREI understands Oaktree will focus on senior and holdco financings and will be diversified across Western European countries and sectors, including real estate, corporates and other hard asset-backed loans.

“This fund aims to deliver attractive returns while investing in a risk-controlled manner that ensures capital preservation by providing financing to high-quality, non-sponsor borrowers who may not be able to efficiently access banks or public capital markets due to reasons such as reduced bank appetite or a requirement for bespoke and timely structures,” said Armen Panossian, head of performing Credit at Oaktree.