Oaktree Capital Management closed Oaktree European Capital Solutions Fund III, a private debt fund that closed with a total capital commitment of €1.2 billion ($1.33 billion).
“As traditional European capital providers retreat from certain areas of the market, there is a compelling opportunity for capable private lenders to provide much needed capital backed by strong assets,” Nael Khatoun, managing director and portfolio manager of Oaktree’s European private debt strategy, said. “Oaktree has been active in the European private credit market for over a decade. We are excited to build on our strong momentum while supporting the growth and development of some of the continent’s leading non-sponsor borrowers.”
“This fund aims to deliver attractive returns while investing in a risk-controlled manner that ensures capital preservation by providing financing to high-quality non-sponsor borrowers who may not be able to efficiently access banks or public capital markets due to reasons such as reduced bank appetite or a requirement for bespoke and timely structures,” Armen Panossian, head of performing credit at Oaktree, said. “As markets continue to navigate ongoing volatility, we’re confident that our resources and expertise will position us as a capital provider of choice and enable us to offer differentiated solutions to drive value for all stakeholders.”
The fund has drawn 36% of committed capital and invested almost €609 million ($672.51 million) across 24 loans as of March. The fund provides debt financing to performing non-sponsor middle-market borrowers across Europe and focuses on senior and holdco financings. It is diversified across western European countries and sectors, including real estate, corporates and other hard asset-backed loans.
