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Oaktree reports 2% drop in AUM in first quarter

Oaktree Capital Group CEO Jay Wintrob

Oaktree Capital Group's assets under management totaled $121.4 billion as of March 31, down 2% from the end of the previous quarter and up 0.1% from the year before, according to the alternative investment firm's earnings report released Thursday.

The company started including assets managed by DoubleLine Capital in the first quarter, reflecting Oaktree's pro-rata portion based on its 20% ownership stake in the fixed-income money manager. Prior quarters have also been adjusted. Oaktree reported $100.2 billion in assets under management as of Dec. 31 without the DoubleLine portion. The DoubleLine portion for Oaktree was $23.8 billion as of March 31.

Oaktree also raised gross capital of $1.9 billion in the quarter and $7.7 billion in the year ended March 31. It raised $1.7 billion in the previous quarter.

"Oaktree had a good start to the year in terms of financial and investment performance, highlighted by 22% growth in distributable earnings in the first quarter vs. the same period a year ago. Against a backdrop of turbulent financial markets, we continued to harvest assets across our credit, private equity and real assets strategies," CEO Jay Wintrob said in the earnings release.

GAAP net income attributable to Oaktree Capital Group was $52.7 million, up from $13.4 million in the prior quarter and down from $54.9 million in the year-earlier period.

Management fees and incentive income have also been adjusted to reflect the DoubleLine ownership stake.

Management fees were $202.9 million in the quarter, up 0.8% from the quarter ended March 31, 2017, and incentive income was $235.6 million in the first quarter, up 59.8% from the year-earlier quarter. Adjusted fourth-quarter numbers were not provided.