Oaktree AUM up 2.9% for quarter
By Arleen Jacobius | November 6, 2012 4:41 pm
Oaktree Capital Group's assets under management totaled $81 billion as of Sept. 30, a 2.9% increase from the second quarter and an 11% increase from the year-earlier quarter, according to the alternative investment firm's third-quarter financial results released Tuesday.
Net income under GAAP was $25.2 million for the third quarter of 2012, up 2% from net income in the second quarter and compared with a net loss of $36.5 million in the year-earlier period. Last year's net loss was attributed, in part, to compensation expense from the vesting of private offering units held by Oaktree employees.
During the third quarter, Oaktree held first closings for two funds: Oaktree Real Estate Opportunities Fund VI, which raised $255 million; and Oaktree Enhanced Income Fund, which raised more than $500 million. The Oaktree Real Estate Opportunities Fund is expected to raise a total of $1.5 billion when it has its final close and Oaktree Enhanced Income Fund is expected to close with $1.5 billion, including leverage.
Oaktree also closed its latest distressed debt fund, the $5 billion Oaktree Opportunities Fund IX. Investors in the fund include the $15 billion Los Angeles Fire & Police Pension System and the $157.4 billion Florida State Board of Administration, Tallahassee.
Oaktree earned $30.6 million in management fees in the third quarter, compared with $1.3 million in incentive income. By comparison, Oaktree earned $188.8 million from management fees and $23.2 million in incentive income in the second quarter and $34.7 billion in management fees and $2.8 million in incentive income in the quarter ended Sept. 30, 2011.