During the second quarter, Oaktree launched fundraising for two new closed-end funds: Oaktree Real Estate Opportunities Fund VI, L.P. (“ROF VI”) and the Oaktree Enhanced Income Fund, L.P. (“EIF”). ROF VI has a committed capital target of $1.5 billion-plus, with a first close anticipated later this year. EIF will invest in senior loan assets on a leveraged basis and has a total fund size target of about $1.5 billion, including leverage. EIF’s first close will be held this month, with its investment period expected to start next month.
As announced on July 25, 2012, Oaktree also plans to launch a new Emerging Market Opportunities investment strategy focused on distressed and dislocated corporate and sovereign debt, led by recently hired portfolio manager Julio Herrera.
The table below presents unaudited: (a) fee-related earnings, distributable earnings, adjusted net income and economic net income, in each case for both the Operating Group and per Class A unit; and (b) assets under management and accrued incentives (fund level) data. Please refer to the Glossary for certain definitions.
|As of or for the Three Months Ended June 30,||As of or for the Six Months Ended June 30,|
|(in thousands, except per unit data or as otherwise indicated)|
|Fee-related earnings-OCG per Class A unit||0.41||0.30||0.82||0.70|
|Distributable earnings-OCG per Class A unit||1.02||0.91||1.73||1.71|
|Adjusted net income||165,510||141,022||339,142||348,376|
|Adjusted net income-OCG per Class A unit||0.89||0.69||1.79||1.83|
|Economic net income||103,637||97,983||382,028||495,562|
|Economic net income-OCG per Class A unit||0.60||0.43||1.94||2.76|
|Assets under management (in millions):|
|Assets under management||$||78,713||$||79,519||$||78,713||$||79,519|
|Management fee-generating assets under management||66,311||63,869||66,311||63,869|
|Incentive-creating assets under management||35,996||37,275||35,996||37,275|
|Uncalled capital commitments||13,737||12,661||13,737||12,661|
|Accrued incentives (fund level):|
|Incentives created (fund level)||(9,116||)||33,699||256,046||467,450|
|Incentives created (fund level), net of associated incentive income compensation expense||(589||)||20,941||158,846||275,426|
|Accrued incentives (fund level)||1,751,326||2,296,087||1,751,326||2,296,087|
|Accrued incentives (fund level), net of associated incentive income compensation expense||1,070,597||1,313,769||1,070,597||1,313,769|
Note: Oaktree discloses in this earnings release certain financial measures, including fee-related earnings, fee-related earnings-OCG per Class A unit, distributable earnings, distributable earnings-OCG per Class A unit, adjusted net income, adjusted net income-OCG per Class A unit, economic net income and economic net income-OCG per Class A unit, that are calculated and presented on the basis of methodologies other than in accordance with generally accepted accounting principles in the United States (“non-GAAP”). Reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP are presented in Exhibit A hereto. All information in this earnings release gives effect to the conversion of our previously outstanding 13,000 Class C units into Class A units on a one-for-one basis before the initial public offering of our Class A units.
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