Oaktree raises $2.35bn for new direct lending strategy
US-based Oaktree Capital Management has launched an evergreen senior lending strategy for institutional investors, raising approximately $2.35bn (£1.76bn) in committed capital at first close.
According to the manager, the Oaktree Direct Lending Evergreen Fund (ODLE) will primarily provide senior secured loans to sponsor-backed, middle-market US borrowers. On a selective basis, Oaktree said it will also lend to European borrowers.
“With demand for private credit and long-term investment solutions accelerating, this evergreen fund represents a natural expansion of how Oaktree delivers its direct lending capabilities to clients,” said Raj Makam, portfolio manager for the Oaktree Direct Lending Evergreen Fund. “The structure brings our risk-managed approach to insurance investors in a format designed to support capital efficiency and consistent portfolio growth over time.”
Read more: Oaktree using private credit financing from Barings & Ares to acquire Perpetual
Currently, the vast majority of committed capital to the fund has been invested by global insurance companies, according to Oaktree, which has $209bn in assets under management.
This comes as global insurers are increasingly shifting their portfolios towards private markets, with nearly a third expecting their allocations to illiquid assets to rise this year, credit being one of the main areas of interest, according to a recent survey by US manager BlackRock.
“Insurance companies and other long-term investors are increasingly seeking portfolio structures that align with their specific balance sheet objectives,” said Greg Halagan, managing director and global head of insurance solutions at Oaktree.
