Oaktree Specialty Lending sees NAV decline due to losses in portfolio
Oaktree Specialty Lending saw its net asset value (NAV) decline in its first fiscal quarter of 2024, after “idiosyncratic performance challenges” at four of its portfolio investments.
The credit-focused investment vehicle reported NAV per share of $19.14 (£15) as of 31 December 2023, compared to $19.63 as of 30 September that year.
“The decline…primarily reflected realized and unrealized losses on certain debt and equity investments and the impact of the December 2023 special distribution,” the firm said.
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The firm reported net realised and unrealised losses of $33.654m, compared to $1.546m the previous quarter.
Total investment income was $98m, down from $101.9m the previous quarter.
“Our first quarter results were highlighted by strong origination activity and adjusted net investment income that supports our cash distribution,” said Armen Panossian, chief executive and chief investment officer.
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“We leveraged the breadth of the Oaktree platform to invest $370m across sponsor, non-sponsor and discounted publicly traded credit investments, generating net portfolio growth with a diverse set of attractive opportunities.
“During the quarter, however, we experienced idiosyncratic performance challenges at four portfolio investments, resulting in a decline in NAV and an increase in non-accruals.
“We are drawing upon Oaktree’s deep resources and expertise in navigating turnarounds, and we believe we are well-positioned to manage these specific situations and maintain strong overall credit quality.”