THIRD QUARTER 2023
Forward Looking Statements & Legal Disclosures
Some of the statements in this presentation constitute forward-looking statements because they relate to future events or our future performance or financial condition. The forward- looking statements contained in this presentation may include statements as to: our future operating results and distribution projections; the ability of Oaktree Fund Advisors, LLC (together with its affiliates, "Oaktree") to reposition our portfolio and to implement Oaktree's future plans with respect to our business; the ability of Oaktree and its affiliates to attract and retain highly talented professionals; our business prospects and the prospects of our portfolio companies; the impact of the investments that we expect to make; the ability of our portfolio companies to achieve their objectives; our expected financings and investments and additional leverage we may seek to incur in the future; the adequacy of our cash resources and working capital; the timing of cash flows, if any, from the operations of our portfolio companies; and the cost or potential outcome of any litigation to which we may be a party. In addition, words such as "anticipate," "believe," "expect," "seek," "plan," "should," "estimate," "project" and "intend" indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this presentation involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in "Risk Factors" and elsewhere in our annual report on Form 10-K for the fiscal year ended September 30, 2022 and our quarterly report on Form 10-Q for the quarter ended June 30, 2023. Other factors that could cause actual results to differ materially include: changes in the economy, financial markets and political environment; risks associated with possible disruption in our operations or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine), natural disasters or pandemics; future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities) and conditions in our operating areas, particularly with respect to business development companies or regulated investment companies; and other considerations disclosed from time to time in our publicly disseminated documents and filings.
We have based the forward-looking statements included in this presentation on information available to us on the date of this presentation, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.
Calculation of Assets Under Management
References to total "assets under management" or "AUM" represent assets managed by Oaktree and a proportionate amount of the AUM reported by DoubleLine Capital LP ("DoubleLine Capital"), in which Oaktree owns a 20% minority interest. Oaktree's methodology for calculating AUM includes (i) the net asset value ("NAV") of assets managed directly by Oaktree, (ii) the leverage on which management fees are charged, (iii) undrawn capital that Oaktree is entitled to call from investors in Oaktree funds pursuant to their capital commitments, (iv) for collateralized loan obligation vehicles ("CLOs"), the aggregate par value of collateral assets and principal cash, (v) for publicly-traded business development companies, gross assets (including assets acquired with leverage), net of cash, and (vi) Oaktree's pro rata portion (20%) of the AUM reported by DoubleLine Capital. This calculation of AUM is not based on the definitions of AUM that may be set forth in agreements governing the investment funds, vehicles or accounts managed and is not calculated pursuant to regulatory definitions.
Unless otherwise indicated, data provided herein are dated as of June 30, 2023.
Managed by Oaktree: A Leading Global Alternative Asset Manager
- Founded in 1995, Oaktree is a leading global investment management firm focused on credit investing
- Assets under management of $179 billion1 in contrarian, value-oriented,risk-controlled investment strategies across a variety of asset classes
- Partnered with Brookfield Asset Management in 2019, creating one of the largest and most comprehensive alternative investment platforms globally
- Manages assets for a wide variety of clients including many of the most significant investors in the world
STRONG EMPHASIS ON CREDIT STRATEGIES3
SIGNIFICANT GLOBAL PRESENCE2
Over 1,100 employees in 20 cities and 15 countries
HISTORICAL ASSETS UNDER MANAGEMENT1
($ in billions)
As of June 30, 2023
- Includes Oaktree's proportionate amount of DoubleLine Capital AUM resulting from its 20% minority interest therein. See Forward Looking Statements & Legal Disclosures section for important information regarding Oaktree's calculation methodology for assets under management.
- Includes offices of affiliates of Oaktree-managed funds in Amsterdam, Luxembourg and Dublin. Oaktree is headquartered in Los Angeles.
3 Excludes proportionate amount of DoubleLine Capital AUM.
Oaktree's Investment Philosophy
PRIMACY OF RISK
NOT CRITICAL TO
Rather than merely searching for prospective profits, we place the highest priority on preventing losses; "If we avoid the losers, the winners will take care of themselves" - Howard Marks
A superior record is best built on a high batting average rather than a mix of brilliant successes and dismal failures
It is only in less-efficient markets that hard work and skill are likely to produce superior investment results
Our team members' long-term experience and expertise in creative, efficient structuring and institutional knowledge of bankruptcies and restructurings enables a focus on risk control that competitors tend to lack
A bottom-up investment approach based on proprietary, company-specific research is most productive
Bargains are purchased without reliance on predictions about the market's future direction
The key tenets of Oaktree's investment philosophy are strongly aligned
with the interests of Oaktree Specialty Lending shareholders
The Oaktree Advantage
SIGNIFICANT SCALE & PRESENCE
- Oaktree's roots are in credit, dating back to our founders' investing activities in 19851
- $116 billion of credit-focused AUM
- Deep and broad credit platform drawing from more than 375 highly experienced investment professionals with significant origination, structuring and
- Deep relationships with many sources of investment opportunities - private equity sponsors, capital raising advisers and borrowers
- Collaboration across teams of multi- disciplinary investment professionals drives superior investment insights
- Access to proprietary deal flow and frequent first look at investment opportunities
"ALL WEATHER" CREDIT MANAGER
- Over three decades of investment experience, in areas ranging from performing credit to distressed debt, over multiple market cycles1
- Over $41 billion invested in more than 640 directly originated loans since 2005
- Active investor in periods of market strength and distress
DISCIPLINED CREDIT UNDERWRITING PROCESS CENTERED ON RISK CONTROL
- Bottom-up,fundamental credit analysis at the core of our value-driven investment approach
- Expertise to structure comprehensive, flexible and creative credit solutions for companies of all sizes across various industries
- Capacity to invest in large deals and to sole underwrite transactions
As of June 30, 2023
1 This includes the investment team's record achieved at TCW Group through the first quarter of 1995, at which time they commenced portfolio management at newly formed Oaktree.
Oaktree Specialty Lending Corporation published this content on 03 August 2023 and is solely responsible for the information contained therein. Distributed by, unedited and unaltered, on 04 August 2023 19:05:42 UTC.