LOS ANGELES—Oaktree Capital Management haslaunched a seventh investment fund that will target $3 billion.Like Fund VI, Fund VII, as it iscalled, will target distressed and non-performingcommercial real estate assets as well ascommercial loans and corporate transactions.

Fund VII has already been brought to market and is currentlyseeking investors. According to the private placement memorandum,the fund has four-year investment period with an 8% preferredreturn and a 10-year term. Oaktree Capital will charge a 1.5%management fee. Oaktree Capital was not available to comment on thefund.

Fund VII comes to the market only seven months after OaktreeCapital closed Fund VI, which raised $2.7 billion. The capital fromthe sixth investment fund has already been deployed. Recentacquisitions from the investment vehicle include a class-Aapartment property in Henderson, NV, purchased in partnership withBascom; and Brea Place, a550,000-square-foot office campus in Brea, CA, purchased in partnership withHines.