Oaktree Real Estate Opportunities Fund VII, L.P.
Purchases
OAKTREE REAL ESTATE OPPORTUNITIES FUND VII, L.P.
Resolution and
Securitization
Appendix II: Evolution of Six Areas of Focus (Commercial NPLs)
600
($ in millions)
$800
400
200
0
(200)
HYPER-
LIQUIDITY
(400)
2006
2007
GLOBAL FINANCIAL
CRISIS
2008 2009
+
2010
2011
2012
FDIC Portfolios
RECOVERY
2013
Distressed Private Bank
Portfolios
2014
HL
IT
2015
Proprietary Portfolios
Special Servicers' Loan
Portfolios
+
SAMPLE DEAL: REGIONAL BANK COMMERCIAL NPL POOL
• Investment date: December 20, 2013
• ROF VI investment: $23 million
Total Oaktree investment: $33 million
●
INVESTMENT PROFILE
Off-market transaction with a Florida-based bank looking to
exit a loss-share agreement with the FDIC
●
Confidential
• Oaktree funds purchased $359 million in UPB of NPLs and
deficiency judgments
●
●
NPLs: $177 million in UPB consisting of 121 mortgage
loans
INVESTMENT THESIS
Attractive purchase price of 54% of UPB and 2% for deficiency
judgments; Purchased at 37% of peak value
Diverse underlying collateral in Southeast
Affiliate-controlled servicing and asset management through
Sabal Financial Group¹
Deficiency judgments: $182 million in UPB consisting of
270 deficiency judgments
(600)
As of June 30, 2015
Note:
Reflects purchase and 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 $1.4 billion of equity for investments in Real Estate team-led transactions across all Oaktree-managed funds. Realizations include $595 million of resolutions
and an additional $571 million of securitization proceeds.
This investment highlight represents the largest investment within the Commercial NPLs 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.
1 Sabal currently provides services to real estate and other Oaktree funds. Oaktree owns a 50% interest in Sabal, but does not profit from any amounts paid by our funds to Sabal.
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