Newspaper icon
The latest issue of Financial Standard now available as an e-newspaper
READ NOW

Investment

Brookfield-owned Oaktree raises US$2bn for private credit fund

Brookfield-owned Oaktree has achieved its target fund raise of US$2 billion for its Asset-Backed Financial Fund.

The strategy will lend across a range of sectors including equipment leasing, transportation, consumer, real estate and infrastructure.

The fund attracted a globally diversified base of institutional investors, including US public pension plans and sovereign wealth funds.

"As the private asset-backed market grows, its sheer variety across sectors, structures and risk/return makes the market difficult to navigate," Oaktree managing director and portfolio manager Brendan Beer said.

"We see that as opportunity, giving us real freedom to pursue the best relative value. Our approach is simple: survey a very broad market for less-crowded lending opportunities, and subject them to Oaktree's critical eye."

Across the broader asset-backed finance platform, Oaktree has invested more than US$19 billion.

Beer added the partnership with Brookfield has supercharged Oaktree's proprietary sourcing and added differentiated perspectives to investment decisions.

The two firms first partnered in 2019, when Brookfield paid about $6.8 billion for a 62% stake in Oaktree. Last year, Brookfield became the owner of Oaktree after scooping up the remaining 26% stake in the credit fund manager for US$3 billion.

"The Asset-Backed Financial Fund's final close builds on Brookfield's longstanding partnership with Oaktree, which dates back to 2019," Oaktree said.

"Now as an integrated business, the strategy benefits from deeper sourcing and underwriting expertise, harnessing Brookfield's global scale and extensive operating platform."

The fund is complementary to Brookfield's broader asset-based finance platform, which totals more than US$60 billion and provides access to opportunities including specialty finance, residential non-qualified mortgages, aviation lending, music royalties, fund finance and digital infrastructure leases.

Read more: Oaktree,  US,  Brookfield,  Asset-Backed Financial Fund,  Brendan Beer