Oaktree Capital Group on Tuesday reported assets under management of $78.7 billion in the second quarter — its first as a public company — up 1% from three months earlier but 1% below a year earlier.
The second-quarter increase was primarily because of $3.5 billion in new capital commitments, including $3.4 billion for distressed-debt fund Oaktree Opportunities Fund IX, according to its earnings statement. That fund has total capital commitments of $4.6 billion, with an additional $300 million pending. The fund is not expected to begin its investment period until January, the earnings announcement stated.
Oaktree became a public company in April.
The company reported $2.7 billion in distributions to limited partners in Oaktree's closed-end funds, $1.1 billion in redemptions to investors in open-end funds and $76 million in redemptions to investors in Oaktree's evergreen funds.
GAAP net income $24.7 million, compared to a net loss of $20.4 million a year earlier. During the last quarter, Oaktree earned $188.8 million from management fees, up from $179.4 million in the second quarter 2011. It also earned $129 million in incentive fees, up from $107 million in the year-ago quarter, and $23.2 million in investment income, up from $13.5 million in the quarter ended June 30, 2011.
Oaktree started raising two closed-end funds in the second quarter, each with at least a $1.5 billion fundraising target: Oaktree Real Estate Opportunities Fund VI and the Oaktree Enhanced Income Fund. The enhanced income fund will invest in senior loan assets on a leveraged basis and is expected to have its first close in August, with its investment period beginning next month. The real estate fund is expected to have its first close later this year.