Oaktree Capital Management and Pantheon announced the launch of a strategic partnership designed to support the continued expansion of Oaktree’s European Direct Lending (EDL) strategy, with the capacity to grow to €1 billion in investable capital.
The partnership combines a seeded portfolio of existing European direct lending investments with committed capital from Pantheon, creating a scalable and capital-efficient structure to accelerate the growth of Oaktree’s European direct lending platform. The initial seeded portfolio includes assets from multiple Oaktree-managed vehicles and represents a portion of all existing holdings within Oaktree’s European Direct Lending strategy.
Oaktree has invested in European direct lending opportunities for more than a decade through its global performing credit strategies. The new partnership establishes a dedicated capital pool for EDL and marks the formal launch of the strategy as a standalone offering within Oaktree’s broader investment platform. Oaktree expects the partnership to be the first of several dedicated capital pools targeting European direct lending opportunities.
The European Direct Lending strategy will focus on first-lien senior secured private loans to companies domiciled in Europe and the United Kingdom. The strategy is designed to combine disciplined underwriting with Oaktree’s longstanding emphasis on risk control and credit expertise.
According to Oaktree, Europe’s direct lending market remains underpenetrated relative to the United States because of the region’s historical dependence on bank financing. The firm believes this dynamic creates substantial long-term growth opportunities, particularly in the core middle-market segment where the strategy is focused.
Pantheon said the transaction aligns with its approach of partnering with experienced managers and providing customized, large-scale capital solutions that support platform growth. The firm noted that the combination of a seeded portfolio and committed capital demonstrates its ability to deliver structured capital at scale while helping investment managers expand their capabilities.
KEY QUOTES:
“We are pleased to partner with Pantheon to launch our European Direct Lending strategy at scale. As the European direct lending market continues to mature, we believe there is a large and attractive opportunity that continues to offer meaningful long-term growth potential. We are confident that Oaktree’s deep relationships and fundamental underwriting, structuring and risk management expertise positions our platform well to deliver compelling risk adjusted returns for our investors. Pantheon’s ability to deliver flexible and large-scale capital solutions make it a highly aligned partner as we expand our European franchise.”
Nael Khatoun, Portfolio Manager, Oaktree European Private Debt
“Oaktree is a leading global credit manager with a well-established track record of investing through cycles. This transaction reflects our strategy of partnering with experienced managers to deliver bespoke, large-scale capital solutions that support platform growth. By combining a high-quality seeded portfolio with committed capital for new investments, this partnership demonstrates our ability to provide structured capital at scale. We believe Oaktree’s European Direct Lending platform is exceptionally well positioned, particularly in the current investment climate, to capitalize on the evolving opportunity set across the region.”
Toni Vainio, Partner, Head of European Private Credit at Pantheon
