Oaktree Specialty Lending noticed its internet asset worth (NAV) decline in its first fiscal quarter of 2024, after “idiosyncratic efficiency challenges” at 4 of its portfolio investments.
The credit-focused funding automobile reported NAV per share of $19.14 (£15) as of 31 December 2023, in comparison with $19.63 as of 30 September that 12 months.
“The decline…primarily mirrored realized and unrealized losses on sure debt and fairness investments and the influence of the December 2023 particular distribution,” the agency stated.
Learn extra: Oaktree: Non-public credit score “prone to weaken in close to time period”
The agency reported internet realised and unrealised losses of $33.654m, in comparison with $1.546m the earlier quarter.
Whole funding revenue was $98m, down from $101.9m the earlier quarter.
“Our first quarter outcomes have been highlighted by sturdy origination exercise and adjusted internet funding revenue that helps our money distribution,” stated Armen Panossian, chief government and chief funding officer.
Learn extra: Oaktree raises $3bn for contemporary particular conditions fund
“We leveraged the breadth of the Oaktree platform to speculate $370m throughout sponsor, non-sponsor and discounted publicly traded credit score investments, producing internet portfolio progress with a various set of enticing alternatives.
“Throughout the quarter, nonetheless, we skilled idiosyncratic efficiency challenges at 4 portfolio investments, leading to a decline in NAV and a rise in non-accruals.
“We’re drawing upon Oaktree’s deep assets and experience in navigating turnarounds, and we consider we’re well-positioned to handle these particular conditions and keep sturdy general credit score high quality.”