Oaktree launches real estate credit income fund

The Los Angeles-based manager is capping off 2023 with its second fundraise for the year.

Oaktree Capital Management kicked off more fundraising efforts last week with the launch of the Oaktree Real Estate Credit Income Fund.

A dearth of bank lenders in the present commercial real estate debt market has brought about more fund launches from alternative lenders – including Los Angeles-based manager and Brookfield affiliate Oaktree – to fill the financing void.

Form D filings confirmed the fund’s December 5 launch, which marks Oaktree’s second real estate debt fund launch this year. In May, the firm rolled out the fourth iteration of its standard real estate debt fund with a $3 billion target, according to data from affiliate title PERE.

Oaktree did not disclose a target size for its real estate credit income fund or disclose a strategy focus for the fund.

Beyond its 2023 fundraising efforts, Oaktree has expanded its commercial real estate debt market reach this year by doubling down on a joint venture with Los Angeles-based bridge loan specialist iBorrow. In January, the firms outlined plans to make $800 million to $1 billion of new originations through their venture during the year.

Oaktree’s fund launch arrived the same week news emerged New York-based manager and Franklin Templeton affiliate Benefit Street Partners was also aiming to raise $1.5 billion for the next addition to its real estate debt fund suite.

Real Estate Capital USA confirmed BSP’s fundraising efforts with sources familiar with the matter. In July, BSP also launched an opportunistic real estate debt fund, its second in the category.