Real estate debt looks well positioned compared with corporate debt, maintains Justin Guichard of Oaktree Capital in this interview shot at sister publication PDI's New York Forum.
The real estate lender is charging a 1.5% management fee, according to Arkansas pension fund documents.
Given a family office’s access to long-dated capital, real estate investments seem like a good fit. But management fees continue to be an area of contention.
The partnership will see a geographic mix across the US and Europe, which will let BBDC access investments with different levels of yield.
The Los Angeles, California-based firm is now preparing to launch its Oaktree Real Estate Opportunity Fund VIII in 2019.
The Dallas-based firm is raising its latest fund in a series that focuses on private equity control investments, corporate and consumer debt, real estate and real estate debt.
Lending in the US is an attractive proposition for European organisations, but fierce competition is already hitting loan margins.