Oaktree Specialty Lending Corporation Direct Lending Approach
OAKTREE
OCSL Specialty Lending Corporation
Oaktree's Investment Philosophy
Oaktree's Underwriting Criteria and Investment Process Have Been Demonstrated Across Market Cycles
Primacy of
Risk Control
Avoid Losers &
Winners Take Care
of Themselves
Market
Inefficiency
Benefits Of
Specialization
Emphasis On
Consistency
Selectivity
• Control primarily for risk, rather than return
•
May underperform in the most bullish markets, but prudence across investing environments and
limiting losses has been foremost in our investment approach over time and throughout cycles
• Avoidance of investments that could impair capital over long term
Opportunistic generation of meaningfully higher return potential in certain environments
• The private credit market is a relatively less efficient, less well trafficked market, providing
opportunities for incremental return relative to risk
•
•
Willingness to invest and lend during times of market stress, when others are retreating
Expertise in creative, efficient structuring and institutional knowledge of bankruptcies and
restructurings enables a focus on risk control that competitors lack
• An emphasis on consistency is a core tenet of Oaktree's investment philosophy and approach
• We allow the market to dictate opportunities; we need not rely on macro forecasts
Oaktree's platform provides an extensive reach across credit markets providing access to deal flow
and the ability to be highly selective
Emphasis on fundamental credit analysis, consistency and downside protection are
key tenets of Oaktree's investment philosophy, all of which are strongly aligned with
the interests of Oaktree Specialty Lending shareholders
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