Oaktree Specialty Lending's Q4 results show $100mln equity raise, $6.4mln waived fees.

• Oaktree Specialty Lending reported Q4 financial results • Oaktree Capital I purchased $100mln shares at $17.63 per share • NAV increased nearly 7% • Implemented total return hurdle, waived Part I incentive fees of $6.4mln • Q4 results to be disclosed in future filings

Oaktree Specialty Lending Corporation (OCSL) recently announced its financial results for the fourth quarter of 2024. The specialty finance company reported several significant developments, including a $100 million share purchase by Oaktree Capital I, L.P., a notable increase in net asset value (NAV), and the implementation of a total return hurdle [1].

In a strategic move to bolster its asset base and diversify the portfolio, Oaktree Capital purchased $100 million of OCSL common stock at a premium to the net asset value on February 3, 2025 [1]. This transaction resulted in a nearly 7% increase in NAV, demonstrating the confidence of Oaktree Capital in OCSL's financial performance.

The implementation of a total return hurdle led to the waiver of $6.4 million in Part I incentive fees for the quarter ended December 31, 2024 [1]. This new arrangement, which takes into account capital gains and losses when determining incentive fees, is designed to align the interests of the company and its investors more closely. The lookback provision, which commences effective October 1, 2024, will build over time to a rolling 12-quarter lookback by OCSL's 2027 fiscal year-end [1].

Despite the positive developments, the company's total investment income for the first fiscal quarter of 2025 decreased compared to the fourth fiscal quarter of 2024, driven by lower interest income, fee income, and dividend income [1]. GAAP net investment income also experienced a decrease, primarily due to lower total investment income and higher operating expenses [1].

In conclusion, Oaktree Specialty Lending's Q4 results showcased several noteworthy developments, including a strategic share purchase, increased NAV, and the implementation of a total return hurdle. These moves aim to strengthen the company's financial position and better align the interests of the company and its investors.

References:
[1] Oaktree Specialty Lending Corporation. (2025, February 4). Oaktree Specialty Lending Corporation Announces First Fiscal Quarter 2025 Financial Results. Retrieved from https://www.globenewswire.com/news-release/2025/02/04/3020082/10393/en/Oaktree-Specialty-Lending-Corporation-Announces-First-Fiscal-Quarter-2025-Financial-Results.html