Exclusive: Oaktree back quickly with realty Fund VII

Oaktree Capital Management has hit the market with its seventh real estate fund targeting about $3 billion, less than a year after closing the prior fund, according to a person with knowledge of the fundraising, as well as marketing documents for Fund VII.

Oaktree Real Estate Opportunities Fund VII officially started marketing in the past few weeks, the person said. The fund will charge a 1.5 percent management fee, with a four-year investment period and a 10 year term, according to the fund’s private placement memorandum.

Fund VII has an 8 percent preferred return and 20 percent carried interest rate, the PPM said.

John Brady leads Oaktree’s real estate business. Fund VII seeks investments in distressed real estate, non-performing residential and commercial loans and large corporate transactions.

Oaktree Real Estate Opportunities Fund VI closed late last year on $2.7 billion and has been deployed quickly. Fund V closed on $1.3 billion in 2012. Fund VI was generating a 1.01x multiple and a 1.41 percent internal rate of return as of Sept. 30, 2013, according to alternative asset data provider Bison. Fund V had a 1.18x multiple as of Sept. 30, 2013, Bison said.

Photo courtesy of Shutterstock.