LOS ANGELES—Oaktree Capital Management has launched a seventh investment fund that will target $3 billion. Like Fund VI, Fund VII, as it is called, will target distressed and non-performing commercial real estate assets as well as commercial loans and corporate transactions.
Fund VII has already been brought to market and is currently seeking investors. According to the private placement memorandum, the fund has four-year investment period with an 8% preferred return and a 10-year term. Oaktree Capital will charge a 1.5% management fee. Oaktree Capital was not available to comment on the fund.
Fund VII comes to the market only seven months after Oaktree Capital closed Fund VI, which raised $2.7 billion. The capital from the sixth investment fund has already been deployed. Recent acquisitions from the investment vehicle include a class-A apartment property in Henderson, NV, purchased in partnership with Bascom; and Brea Place, a 550,000-square-foot office campus in Brea, CA, purchased in partnership with Hines.