Oaktree partners with Avana to fund commercial real estate SMEs

Oaktree Capital Management has teamed up with Avana Companies to provide $250m (£190.49m) in private real estate debt financing in the US.

Through the newly-formed Avana-Oaktree Private Credit Partnership, Avana will use the capital to provide the financing over the next three years.

Funds will be made available to small and medium-sized enterprises (SMEs) in the commercial real estate (CRE) sector.

“Oaktree has firsthand experience through past partnerships with Avana,” said Justin Guichard, managing director and co-portfolio manager at Oaktree Capital.

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“The Avana team’s unparalleled expertise and reputation in the CRE lending industry aligns with our focus on risk control in private credit investments.”

Sanat Patel, chief lending officer and co-founder of Avana Companies, underscored Avana’s commitment to due diligence, saying that the company meets with every business owner face to face.

Meanwhile, Sundip Patel, chief executive and co-founder of Avana Companies, added that the Oaktree partnership would help plug the SME funding gap in the US CRE market.

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“After 22 years of working within the CRE industry and SMEs, we recognise the challenges of this tight lending environment and that’s why we are challenging our team to lend $250m in the first year,” she said.

“This capital from Oaktree enables us to multiply our social impact exponentially, offering financing opportunities to entrepreneurs and supporting financial inclusion.”

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