Oaktree Capital Group's assets under management rose to a record $103 billion as of June 30, up 3% from three months prior and up 13% from the year-earlier period, the alternative investment firm's earnings report shows.
Firm executives attributed the increase to capital inflows from fundraising, with gross capital raised of $6.3 billion in the second quarter and a record $24 billion for the 12-month period. Capital raised in the second quarter included $2.3 billion of new capital commitments for Oaktree Opportunities Fund X and Oaktree Opportunities Fund Xb, amounting to total commitments for the two funds of $9.4 billion as of June 30, and $1.3 billion in a first closing of Oaktree Real Estate Opportunities Fund VII. None of these funds had begun to generate management fees as of June 30, the earnings report stated.
“With record dry powder of $20.1 billion, we're well positioned for future investment opportunities across multiple strategies,” said Jay Wintrob, Oaktree's CEO, in a news release.
Oaktree also is raising other funds, including Oaktree Mezzanine Fund IV, Oaktree Enhanced Income Fund III, Oaktree Infrastructure Fund, European Capital Solutions Fund and Oaktree European Principal Fund IV.
GAAP net income was $19.8 million for the second quarter, down 48% from $38.3 million in the first quarter and down 37% from $31.2 million in the second quarter of 2014.
Oaktree's one-fifth ownership stake in fixed-income money management firm DoubleLine Capital accounted for investment income of $12.5 million in the second quarter, down 14% from $14.6 million in the first quarter but up 19% from $10.6 million in the second quarter 2014,
“Second-quarter adjusted net income declined year over year primarily due to lower overall returns from our fund investments,” said Mr. Wintrob, in a written statement in the report.