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Oaktree's 3rd-quarter earnings rise on strong investment returns

Friday, 1 Nov 2013 | 9:34 AM ET

Nov 1 (Reuters) - Oaktree Capital Group LLC, the world's largest distressed debt investor, said on Friday its adjusted net income rose by 14 percent year-on-year in the third quarter as its income from performance fees more than doubled.

Oaktree has been taking advantage of buoyant capital markets to cash out on its credit and private equity assets, generating performance fees for itself in the form of so-called incentive income, which allows it to pay out higher dividends.

Adjusted net income rose to $179.6 million in the third quarter from $157.7 million a year ago as incentive income increased 106.8 percent to $122.4 million. Thanks to this, Oaktree said it has seen more profits in the first nine months of 2013 than in any full calendar year since it was founded in 1995.

Distributable earnings grew to $154.8 million in the third quarter from $120.4 million a year earlier, resulting in a dividend of 74 cents per share.

Assets under management grew to $79.8 billion as of the end of September from $76.4 billion as of the end of June. The majority of that is in credit, but the firm also has private equity and real estate assets.

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