Firm: Oaktree Capital Management
Fund: Oaktree Real Estate Opportunities Fund VII
Target: $3 billion
Oaktree Real Estate Opportunities Fund VII officially started marketing in the past few weeks, the person told sister website peHUB. The fund will charge a 1.5 percent management fee, with a four-year investment period and a 10 year term, according to the fund’s private placement memorandum. Fund VII has an 8 percent preferred return and 20 percent carried interest rate, the PPM said.
John Brady leads Oaktree’s real estate business. Fund VII seeks investments in distressed real estate, non-performing residential and commercial loans and large corporate transactions.
Oaktree Real Estate Opportunities Fund VI closed late last year on $2.7 billion and has been deployed quickly. Fund V closed on $1.3 billion in 2012. Fund VI was generating a 1.01x multiple and a 1.41 percent internal rate of return as of Sept. 30, 2013, according to alternative asset data provider Bison. Fund V had a 1.18x multiple as of Sept. 30, 2013, Bison said.
Chris Witkowsky is editor of peHUB.