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Oaktree Capital Management
Armen Panossian manages the Oaktree Strategic Credit Fund, a BDC targeting private U.S.
Oaktree Capital Management
Oaktree Capital Management operates the Oaktree Strategic Credit Fund, a non-diversified, non-traded business development company regulated under the Investment Company Act of 1940. The fund is managed by an affiliate of Oaktree and leverages the firm's established credit platform to originate and manage a portfolio of private loans. The fund's strategy targets approximately 70% in privately negotiated loans to U.S. companies, spanning sponsored financings for private equity-owned businesses, non-sponsored loans to founder-owned companies, and opportunistic lending to firms navigating temporary dislocation. Up to 30% of the portfolio can shift into discounted public debt — high-yield bonds and senior loans — during periods of market stress to capture total-return opportunities. Confirmed sector focuses include software, healthcare, and energy, with the fund dynamically reallocating between private and public credit as market conditions change. As of March 2026, Oaktree Capital Management, L.P., is headquartered in Los Angeles and serves as an affiliate adviser to the fund. The BDC structure includes monthly subscriptions with a $2,500 minimum investment, quarterly tender offers subject to a 5% cap, and a management fee of 1.25% of NAV. An annualized distribution rate of 7.72% was reported as of May 31, 2026 (per firm website). The fund's structural differentiator is its embedded liquidity pivot — an explicit mandate to overweight public credit during dislocations, a feature that separates it from peers locked into static private credit allocations. This design aims to use public-market stress as a liquidity and total-return tool rather than a constraint, reflecting Oaktree's broader reputation for distressed and value-oriented credit investing.
General information
Firm type
Generalist
Year founded
—
AUM
Undisclosed
Location
Region
Europe
Country
United Kingdom
City
London
Corporate office
London, United Kingdom
Principals
Armen Panossian
Portfolio Manager (Oaktree Strategic Credit Fund)
Sector focus
Frequently asked questions
What is the structure of the Oaktree Strategic Credit Fund?
It is a perpetually offered, non-traded business development company (BDC) regulated under the Investment Company Act of 1940. The fund continuously accepts subscriptions on a monthly basis and provides quarterly liquidity through a share repurchase plan, subject to a 5% cap on outstanding shares (per firm website). This structure is designed to offer individual investors a more accessible entry into private credit compared to traditional drawdown funds.
How does the fund allocate between private and public credit?
The fund dynamically allocates its portfolio based on market conditions. In benign markets, it targets roughly 70% in private loans — including sponsored, non-sponsored, and opportunistic lending — to generate income. During periods of significant stress, it can increase allocations to discounted public debt such as high-yield bonds and senior loans, up to a 30% limit, to capture total-return opportunities from dislocation (per firm website).
Who makes the investment decisions for the fund?
Armen Panossian is the named portfolio manager introducing and explaining the fund's strategy (per firm website). The fund's adviser, Oaktree Fund Advisors, LLC, draws on the broader resources of Oaktree Capital Management, L.P., which has managed credit investments for over three decades.
What types of private loans does the fund target?
The strategy covers three categories: sponsored financings for private equity-backed companies, non-sponsored loans to primarily founder-owned businesses that may lack bank access, and opportunistic lending to companies needing tailored solutions during market disruptions. Sectors referenced include software, healthcare, and energy (per firm website).
What is the fee structure and minimum investment?
The minimum initial investment ranges from $2,500 for certain share classes to $1,000,000 for institutional shares. The management fee is 1.25% per annum of NAV. Incentive fees consist of 12.5% of net investment income above a 5% hurdle, and 12.5% of realized capital gains net of losses. Additional shareholder servicing fees vary by share class, up to 0.85% annually (per firm website).
How does the fund handle liquidity and redemptions?
Liquidity is provided through quarterly tender offers, which are expected but not guaranteed and subject to board discretion. Repurchases are capped at 5% of outstanding shares per quarter. Shares held for less than one year incur a 2% early repurchase deduction. The fund can suspend or modify the repurchase plan entirely (per firm website).
What is the relationship between Oaktree Capital Management and the Oaktree Strategic Credit Fund?
The fund is advised by Oaktree Fund Advisors, LLC, an affiliate of Oaktree Capital Management, L.P. Oaktree Capital Management is a global alternative investment firm headquartered in Los Angeles, providing the credit expertise and origination platform that underpins the fund's strategy (per firm website).
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Corporate structure
Part of
Brookfield Asset Management