Oaktree Capital assets increase 4.5% in quarter to $79.8 billion

Howard Marks
Howard Marks

Oaktree Capital Group on Friday reported $79.8 billion in total assets under management as of Sept. 30, a 4.5% increase from June 30 but a 1.5% decrease from Sept. 30, 2012.

The firm also said fee-generating assets under management were $66.9 billion, up 3.6% from the previous quarter and up 1.1% from the year-earlier quarter.

Oaktree reported $2.4 billion in new capital commitments and market gains of $1.8 billion, outpacing $1.9 billion of distributions from closed-end funds. AUM declined from the year before due to $15.5 billion in closed-end fund distributions,” according to its third-quarter earnings statement.

Management fees increased 1.6% for the quarter to $185.6 million, while incentive income, which it earns for performance above certain thresholds, more than doubled to $122.4 million from $59.2 million a year earlier.

Adjusted net income, a measure of profit excluding some costs, rose 13.9% to $179.6 million from the third quarter of 2012, the Oaktree earnings statement said.

“The third quarter was another period of strong investment returns across our platform of diversified alternative investment strategies,” said Howard Marks, founder and chairman, in the earnings statement. “This performance continues to drive fundraising success. Notably in the third quarter, gross capital raised was $3.7 billion, bringing the total for the first nine months of this year to $8.4 billion, including $3 billion for strategies that did not exist two years ago.”