Private Credit Portfolio Analysis | Oaktree Strategic Credit Fund Reports Q2 2025 Results
- Editor
- May 13
- 2 min read
Whats New:
Oaktree Strategic Credit Fund reported its Q2 2025 financial results, showing significant growth in assets and investments compared to the previous quarter. The fund's total assets increased to $6.18 billion as of March 31, 2025, up from $5.22 billion at the end of September 2024. Investments owned at fair value grew to $5.82 billion, while the fund expanded its credit facilities and increased its stockholders' equity.
Portfolio Dynamics:
Total assets grew to $6.18 billion as of March 31, 2025, compared to $5.22 billion at the end of September 2024.
Investments owned at fair value increased to $5.82 billion, up from $4.58 billion at the end of September 2024.
Cash and cash equivalents decreased to $247.37 million from $480.84 million at the end of September 2024.
Investment Activity:
Receivable from investment sales decreased to $5.53 million from $45.73 million at the end of September 2024.
The fund reported $7.04 million in receivables from brokers, dealers, and clearing organizations, compared to zero at the end of September 2024.
Derivative assets decreased to $8.61 million from $21.55 million at the end of September 2024.
Capital Structure:
Line of credit increased to $1.29 billion from $1.10 billion at the end of September 2024.
Unsecured debt decreased slightly to $747.69 million from $759.29 million at the end of September 2024.
Stockholders' equity grew to $3.78 billion from $3.16 billion at the end of September 2024.
Performance Profile:
Net income for the quarter ended March 31, 2025, was $52.90 million.
Retained earnings deficit increased to $52.09 million from $7.75 million at the end of September 2024.
Additional paid-in capital increased to $3.83 billion from $3.17 billion at the end of September 2024.
Risk & Quality:
The fund reported an increase in payable for investment purchases to $224.30 million from $97.40 million at the end of September 2024.
Management and incentive fee payable decreased to $15.68 million from $17.40 million at the end of September 2024.
Derivative liabilities decreased to $7.68 million from $11.93 million at the end of September 2024.
The Wrap:
Oaktree Strategic Credit Fund demonstrated strong growth in Q2 2025, with significant increases in total assets, investments at fair value, and stockholders' equity. The fund expanded its credit facilities while slightly reducing unsecured debt. However, the increase in retained earnings deficit and payable for investment purchases suggests higher investment activity and potential risks. The fund's performance reflects its active management and expansion strategies in the private credit market.