Oaktree Real Estate Opportunities Fund VII, L.P.
Purchases
OAKTREE REAL ESTATE OPPORTUNITIES FUND VII, L.P.
Appendix II: Evolution of Six Areas of Focus (Residential)
Sale, Resolution and
Securitization
$1,750
($ in millions)
1,500
1,250
1,000
750
500
250
0
(250)
HYPER-
LIQUIDITY
(500)
2006 2007
(750)
GLOBAL FINANCIAL
2008
CRISIS
2009 2010
Land Re-
entitlements
2011
2012
RECOVERY
2013
2014
Master Planned Communities
Homebuilder Joint Ventures
Residential
Resort
Communities
+
2015
Residential NPLs
SAMPLE DEAL: GENESIS LENDING PLATFORM
• Investment date: January 13, 2014
ROF VI investment: $55 million ($125 million commitment)
• Total Oaktree investment: $111 million ($250 million commitment)
●
INVESTMENT PROFILE
Oaktree funds partnered with Genesis Capital Partners to grow a
residential-lending platform that originates short-term loans to well
established real estate investors in the distressed single-family
residential marketplace
●
III
As of June 30, 2015
Note:
Reflects purchase and sales/resolution/securitization activity for vehicles in the Real Estate Opportunities, Real Estate Debt and Distressed Debt strategies, as well as other certain Oaktree-managed
funds and accounts. Capital deployed includes $3.4 billion of equity for investments in Real Estate team-led transactions across all Oaktree-managed funds. Realizations include $740 million of sales
and resolutions and an additional $1.7 billion of securitization proceeds.
●
Confidential
Genesis seeks to make six- to nine-month, first lien loans to
investors acquiring homes for purposes of refurbishment and short-
term resale
INVESTMENT THESIS
Benefits from conservative loan-to value ratios (60% to 75%), high
annual interest rates ranging from 10% to 13%, and cross-
collateralization with full recourse personal guaranties from
borrowers
Closed on an attractive credit facility with Wells Fargo
GENESIS CAPITAL
This investment highlight represents the largest investment within the Residential area of expertise within the Oaktree Real Estate Opportunities Fund VI, L.P. See "Legal Information and Marketing
Disclosures" section of the Appendix for important information regarding case studies.
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