Oaktree Capital Group's asset under management totaled $99.8 billion as of Sept. 30, up 1.7% from the end of the previous quarter but down 0.4% from a year earlier, the alternative investment firm announced in its third-quarter earnings release on Friday.
The firm attributed the increase to $3.5 billion in aggregate market value gains and $1.2 billion in aggregate closed-end fund inflows, which were partially offset by $2 billion in aggregate closed-end fund investor distributions and $1.2 billion in open-end fund net outflows.
Uncalled capital commitments, or dry powder, stood at $22.7 billion in the third quarter, slightly below the record high amount of $22.8 billion in the second quarter. The firm raised $2.2 billion in the third quarter and $9.6 billion in the 12 months ended Sept. 30.
“It's natural that a strong realization environment will not simultaneously offer plentiful bargains, and thus we're maintaining our 'move forward, but with caution' investing posture,” said CEO Jay Wintrob in a news release. “That said, our investment teams continue to be resourceful in identifying attractive investments and we remain well positioned, with record levels of dry powder to deploy at a faster pace if market conditions change and the opportunity set widens.”
Net income under GAAP was $58.3 million for the third quarter, up from $49 million in the second quarter and up from $1.9 million in the third quarter of 2015. The firm attributed the higher GAAP results to “higher segment profits, as well as a larger allocation of income to (Oaktree) based on the average number of Class A units outstanding,” the news release said.
Oaktree assets under management that generate management fees were $78.7 billion as of Sept. 30, down 1% from the prior quarter, but up 2.9% from the year before.
Oaktree attributed the $2.2 billion increase in management fee-generating AUM since Sept. 30, 2015, principally to an aggregate $7.3 billion from the commencement of the investment period of Oaktree Power Opportunities Fund IV and Oaktree Principal Fund VI in November 2015, and of Oaktree Opportunities Fund X and Oaktree Real Estate Opportunities Fund VII in January. The firm also noted there were $3.6 billion in aggregate market-value gains and $1.2 billion of drawdowns by closed-end funds. These increases were partially offset by $4.8 billion of net outflows from open-end funds and $4.2 billion in closed-end funds in liquidation.
Closed-end fund AUM totaled $60.5 billion as of Sept. 30, up 1.5% from the previous quarter and up 2% from the year before; open-end fund AUM totaled $34.2 billion as of Sept. 30, up 1.6% from the previous quarter but down 4.8% from the year before; and evergreen fund AUM totaled $5.1 billion, up 5.5% from the previous quarter and up 2.9% from the year before.