Oaktree has closed its Asset-Backed Finance Fund (ABF I) with $2 billion in commitments across the fund and related investment vehicles. The final close reached the fund’s fundraising target and attracted a globally diversified group of institutional investors.
Investors included U.S. public pension plans and sovereign wealth funds, reflecting growing institutional interest in private asset-backed finance strategies.
The close is in addition to Oaktree’s separate asset-backed vehicle focused on private wealth investors.
Oaktree’s strategy provides flexible capital to originators across areas including equipment leasing, transportation, consumer finance, real estate and infrastructure.
The firm has been investing in asset-backed finance for more than two decades.
Across its broader asset-backed finance platform, Oaktree has invested more than $19 billion and developed relationships with hundreds of third-party originators.
ABF I also builds on Brookfield’s partnership with Oaktree, which dates to 2019.
The strategy now uses Brookfield’s global operating platform to support sourcing, underwriting and investment analysis across the asset-backed finance market.
Brookfield’s broader asset-based finance platform totals more than $60 billion.
Its investment areas include specialty finance, residential non-qualified mortgages, aviation lending, music royalties, fund finance and digital infrastructure leases.
Oaktree operates as part of Brookfield’s $416 billion credit platform.
KEY QUOTE:
“As the private asset-backed market grows, its sheer variety across sectors, structures and risk/return makes the market difficult to navigate. We see that as opportunity, giving us real freedom to pursue the best relative value. Our approach is simple: survey a very broad market for less-crowded lending opportunities, and subject them to Oaktree’s critical eye. The partnership with Brookfield has supercharged our proprietary sourcing and added differentiated perspectives to our investment decisions.”
Brendan Beer, Managing Director and Portfolio Manager at Oaktree
