Oaktree Specialty Lending: A Rare Combination Of Compelling Valuation And Dividend Growth

Oaktree Specialty Lending: A Rare Combination Of Compelling Valuation And Dividend Growth

Summary

  • Founded in 1995, Oaktree was involved in substantial M&A activity in recent years, including partnering with Brookfield and consolidating two BDCs into one.
  • Oaktree’s $158 billion in AUM is among the largest in its peer group. Immense AUM doesn’t guarantee great results for investors, however, and we invest with our eyes wide open.
  • Oaktree is a member of our elite “Tier 1” BDC category. Let’s evaluate how this leading BDC is performing and how close it trades to an optimal entry point.
  • Oaktree’s BDC has among the fastest-growing dividends, favorable risk metrics, and a very reasonable valuation.
  • I do much more than just articles at iREIT on Alpha: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »

“If you can find companies that have been penalized for their difficulties in the pandemic and the penalty was overdone and the difficulties are temporary, I think that’s a good sector right now.”

Oaktree Specialty Lending – A Unique Origin

The timing of our first publication was not a coincidence as that’s when Oaktree’s shareholders voted to merge the two BDCs externally managed by Oaktree into the existing OCSL chassis.

Over 98% of voting OCSL and OCSI (the now deceased BDC) stockholders supported the merger, which closed shortly thereafter on March 19th. Before we discuss the merged company, let’s revisit Oaktree’s corporate profile payday online loans Washington.