Oaktree Real Estate Opportunities Fund Viii, L.P. Presentation for Fresno County Employees’ Retirement Association
OAKTREE REAL ESTATE OPPORTUNITIES STRATEGY
Returning Full-Circle to Another Distressed Cycle
Covid-19 triggered distress requires a combination of real estate and debt capabilities
DISTRESS
EARLY DOWN-CYCLE
Deep value: Acquire deeply discounted
mark-to-market securities with strong
fundamentals; prepare for loan defaults and
margin calls related to warehouse lines
DECLINE
MID-DOWN-CYCLE
Rescue capital and distress-for-control:
Seek quality assets and companies with
maturing debt and broken capital structures.
Focus on control transactions through
restructuring and bankruptcy processes
MID-RECOVERY
Growth: Build up successful growth
platforms, access high-yielding assets in
stable markets with strong long-term
growth fundamentals or quality assets in
cyclical markets poised for growth
LATE-RECOVERY
Opportunistic exits: Invest with caution
and focus on exits
LATE DOWN-CYCLE TO EARLY RECOVERY
Value and growth: Pursue direct investments at bargain
prices, build programmatic joint ventures, and launch
growth platforms in response to market disruption
As of December 31, 2020
Note:
Reflects Oaktree's views based on current data and trends. There can be no assurance that current trends will continue.
GROWTH
RECOVERY
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