Oaktree’s newest distressed debt fund, Oaktree Opportunities Fund IX, L.P. (“Opps IX”), has held its final closing and is expected to have total committed capital of $5.0 billion. Opps IX has not yet commenced its investment period, and thus it is not yet included in management fee-generating assets under management or incentive-creating assets under management. Oaktree has just begun marketing Oaktree Emerging Market Opportunities Fund, L.P., which will invest in distressed emerging market corporate debt. This new fund is expected to hold its first closing in the first quarter of 2013.
The table below presents unaudited: (a) fee-related earnings, distributable earnings, adjusted net income and economic net income, in each case for both the Operating Group and per Class A unit; and (b) assets under management and accrued incentives (fund level) data. Please refer to the Glossary for certain definitions.
As of or for the Three Months Ended September 30,
As of or for the Nine Months Ended September 30,
| (in thousands, except per unit data or
as otherwise indicated)
|Fee-related earnings-OCG per Class A unit||0.40||0.39||1.22||1.08|
|Distributable earnings-OCG per Class A unit||0.70||0.52||2.42||2.23|
|Adjusted net income||157,732||3,301||496,874||351,677|
|Adjusted net income-OCG per Class A unit||0.88||(0.01||)||2.67||1.82|
|Economic net income||368,000||(443,264||)||750,028||52,298|
|Economic net income-OCG per Class A unit||2.22||(2.56||)||4.28||0.21|
|Assets under management (in millions):|
|Assets under management||$||80,967||$||73,010||$||80,967||$||73,010|
|Management fee-generating assets under management||66,171||63,367||66,171||63,367|
|Incentive-creating assets under management||37,071||33,626||37,071||33,626|
|Uncalled capital commitments||13,262||12,376||13,262||12,376|
|Accrued incentives (fund level):|
|Incentives created (fund level)||446,401||(745,113||)||702,447||(277,663||)|
|Incentives created (fund level), net of associated|
|incentive income compensation expense||246,960||(426,574||)||405,806||(151,148||)|
|Accrued incentives (fund level)||2,138,553||1,517,277||2,138,553||1,517,277|
|Accrued incentives (fund level), net of associated|
|incentive income compensation expense||1,280,865||867,204||1,280,865||867,204|
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. All information in this earnings release gives effect to the conversion of previously outstanding 13,000 Class C units into Class A units on a one-for-one basis before the initial public offering of Class A units.
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