Oaktree Capital earnings climb 20%

Oaktree Capital reported a growth in distributable earnings to $538.4 million for the full financial year – a 20 per cent increase from a year earlier thanks to fee-related earnings and net incentive income.

The growth in distributable earnings, which are a measure of cash profits available to shareholders, also benefited from a rise in investment income particularly in relation to its 20 per cent stake in DoubleLine Capital, the asset manager.

DoubleLine Capital accounted for investment income of $16.8m and $14.6m in the fourth quarters of 2016 and 2015.

Separately, adjusted net income (ANI) increased to $582.6m for the year from $311.9m from the same period a year earlier.

“The fourth quarter of 2016 completed a strong year for Oaktree,” said Jay Wintrob, chief executive office.

“We had our best quarterly earnings results as expressed by adjusted net income in 11 quarters and grew ANI by 87 per cent during the full year.”

Assets under management grew to $100.5bn, up 1 per cent for the quarter and 3 per cent for the full year.

Oaktree, one of the biggest distressed-debt groups in the world, raised gross capital of $11.6bn for the full year. Uncalled capital commitments, also known as ‘dry powder’, were at $20.8bn as of the end of last year.

For the full year, management fees increased $31.9 million, or 4.2 per cent, to $785.7m from $753.8m in 2015.

Oaktree declared a distribution per share of $0.63 for the final quarter of the year.