Oaktree Capital Management’s Real Estate Debt Fund II has raised an addition $225 million during the second quarter, bringing the fund close to the $2 billion mark, according to the firm’s second quarter earnings conference call transcript.
The fund will invest in debt secured by properties throughout the United States. Oaktree’s debt series focuses on six areas to invest, which include commercial real estate, real estate–related corporate investments, structured finance, commercial NPLs, residential real estate and non-U.S. real estate, and pursues a wide range of investments, including CMBS, commercial and residential mortgages, mezzanine loans, and corporate debt, according to the firm’s website.
During the conference call with analysts, CEO Jay Wintrob stated Real Estate Debt Fund II will continue its fundraising efforts for the balance of 2018.
Oaktree’s closed-end funds generated an aggregate gross return of 4 percent in the second quarter, bringing the 12 months’ return to 13 percent. Its real estate strategies total return was at 4 percent.
In addition, Wintrob mentioned the firm hired seven co-portfolio managers to work with John Brady, portfolio manager of all Oaktree real estate strategies, and Caleb Kramer, portfolio manager of European Principal Opportunities and European Capital Solutions.
“By naming four co-portfolio managers to manage real estate opportunities, real estate debt, and real estate income alongside [Brady], and by elevating three co-portfolio managers alongside [Kramer] to manage European Principal Opportunities and Capital Solutions, we’re continuing our recent trend toward having co-portfolio managers managing most investment strategies,” said Wintrob. “It also reflects the natural progression for an enduring business. These promotions of long-tenured and highly proven investment professionals are a natural step in the continuing build out of Oaktree’s talent, resources and capabilities.”
The names of the new hires were not disclosed.
