Oaktree To Fulfill All Redemption Requests In Its Private Credit Fund
Oaktree Capital Management has elected to fully satisfy all redemption requests, representing 8.5% in its private credit fund for the first quarter. Oaktree Strategic Credit Fund (OSC) plans to repurchase approximately 13.9 million shares, representing 6.8% of its outstanding shares, Reuters reported. Additionally, Oaktree’s parent company, Brookfield, will acquire another 1.7% to ensure all redemption requests are met this quarter. In response to the current earnings environment, characterized by lower interest rates and tighter credit spreads, the fund has decided to adjust its monthly dividend from 18 cents to 16 cents per share. The fund cited the need to maintain liquidity as a reason for the dividend reduction, echoing the sentiment that “there is no free lunch,” as articulated in a shareholder letter referencing economist Milton Friedman. Established in 2022, the $7.3 billion fund primarily focuses on privately negotiated loans to U.S. companies. Oaktree has stated that it remains cautious, avoiding areas of the market where it perceives a lack of discipline, according to Reuters. To ... Full story available on Benzinga.com
