Oaktree Capital Wins $1.7 Billion FDIC Asset Sale

(Reuters) – Oaktree Capital Management has won a $1.7 billion portfolio of distressed residential loans auctioned by the Federal Deposit Insurance Corp, the Financial Times reported, citing people familiar with the matter.

The portfolio, from Ohio-based Am Trust, consists of about 280 loans with an average face value of about $6 million each, the paper said.


The Financial Times said Los Angeles-based private equity and distressed-debt investor Oaktree teamed up with luxury U.S. homebuilder Toll Brothers (TOL.N) to bid for the assets, for which the FDIC offered zero interest rate debt and took an equity stake along with the buyer.


The FDIC and Oaktree could not be immediately reached for comment by Reuters outside regular U.S. business hours.


On Wednesday, Thomas Barrack’s Colony Capital won an auction for a 40 percent stake in a portfolio of distressed commercial real estate loans being sold by the FDIC, paying $440 million.

(Reporting by Antonita Madonna Devotta in Bangalore; Editing by Michael Shields)