Oaktree Specialty Lending Corporation Direct Lending Approach
OAKTREE
OCSL | Specialty Lending Corporation
Oaktree's Credit Investment Process
Source
Leverage Oaktree's
global platform:
Team of 250+
highly-
experienced
investment
professionals
Strong market
presence and
established
relationships with
financial sponsors,
management teams
and capital raising
advisers
•
Screen Using
Investment
Criteria
Viability of long-
term business model
Capital structure
characteristics
• Level of assets or
enterprise value
coverage
• Forecasted operating
performance and
liquidity profile
•
●
Ability to enforce
creditor rights
Quality of
management team
and equity
Research
Diligence
opportunities
utilizing internal and
external resources
• Oaktree investment
teams in the U.S. and
abroad
• 3rd party experts and
analysis
• Network of industry
management teams
• Perform what-if
analysis on a range
of potential credit
events for each credit
Evaluate
Assess each credit via
robust, collaborative
decision-making
process
• Apply disciplined
investment criteria
• Evaluate risk/reward
with significant focus
on downside risk
• Size investments at
portfolio level across
a variety of
characteristics
Monitor
• Monitor individual
credits and portfolio
positioning
• Execute
buy/sell/hold
decisions when:
-
Credit event occurs
Security becomes
overvalued
Opportunities with
more attractive
risk/reward
profiles are
identified
ownership
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