Oaktree Specialty Lending Corporation Direct Lending Approach
OAKTREE
OCSL | Specialty Lending Corporation
Portfolio Repositioning Strategy
Near-term Priorities - Reposition The Portfolio
• Protect principal and minimize credit losses
• Manage the portfolio down to smaller number of high conviction investments
• Restructure certain loans and exit positions when fair value can be obtained
• As loans mature or are refinanced, rotate into loans that are better aligned with our overall approach to
credit investing
Long-term Objectives - Generate Competitive ROE and Sustainable, Consistent Dividends
• Opportunistically invest across the capital structure - first and second lien, junior unsecured, mezzanine or
preferred equity, as well as structured finance or other non-traditional structures
• Seek to take advantage of dislocations in financing markets and situations that may benefit from our
restructuring expertise
• Generate capital appreciation and income via secondary investments at discounts to par in either private or
syndicated transactions
Goal is to create a portfolio with fewer, high conviction investments in companies that are
aligned with our approach and have the potential to generate attractive returns across market cycles
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