Oaktree Capital Management has acquired real estate financing platform Xenia Capital, in a deal that it said will boost its position in the Iberian real estate market.

Xenia finances developments across locations in the Iberian region including Madrid, the Costa del Sol and Barcelona. Its portfolio encompasses a diverse range of assets including build-to-rent, residential, co-living, and five-star hotels in tourist hotspots.

The alternative asset manager is acquiring Xenia and its existing loan portfolio from Pacific Investments. The acquisition builds on an existing partnership between Oaktree and Xenia, following a three-year joint venture co-investing in Spain where over €220m (£186.8m) was committed.

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Xenia’s chief executive, Rory Buchanan, and managing partner, Gonzalo Barrios, will maintain equity stakes in the business while leading the company’s transition and expansion under Oaktree’s ownership.

Additionally, Xenia has announced that it has secured a €200m senior loan facility from JP Morgan to help scale the platform and fund both existing and new investments.

Nael Khatoun, portfolio manager within Oaktree’s European private debt strategy, said that the acquisition “is a testament to the strength of the partnership between both of our teams and is a natural next step in our collaboration”.

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“We are highly optimistic about private credit opportunities in Europe and firmly believe in the growth potential of the Xenia platform,” he added. “The transaction cements our strong position in Iberian real estate and we look forward to working with the Xenia team to build on our successes to date.”

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“Having built one of the most reputable alternative lenders in the Iberian market, we will now be able to leverage Oaktree’s private credit experience to significantly scale the business,” said Buchanan.

“We look forward to building on our initial success with Oaktree, and with fresh capital resources, we are well-positioned as we enter this next phase of growth. I would like to thank the Beckwith family for their partnership and support over the years in making Xenia the strong, rapidly growing credit platform it is today.”