Oaktree Capital Management has launched Oaktree Direct Lending Evergreen Fund, L.P. (“ODLE” or “the Fund”), an evergreen senior direct lending strategy for institutional clients. ODLE completed its first close with approximately $2.35 billion in committed capital, the vast majority from a wide range of global insurance companies.

Building on Oaktree’s more than two decades of experience in private credit and its longstanding record of disciplined risk management, ODLE will primarily make senior secured loans to sponsor-backed, middle-market U.S. borrowers. On a selective basis, ODLE will also lend to large-cap and non-sponsor-backed borrowers in the U.S. and Europe on a first lien, senior secured basis.

Oaktree developed ODLE as a unique product innovation with a perpetual debt issuance rated note feeder for insurance investors. It charges no incentive fees, only management fees, and is designed to help clients achieve their long-term portfolio objectives by bringing to bear the advantages of an evergreen format. For clients’ core private credit allocations, ODLE’s design aims to support NAV stability, capital efficiency, and the potential for long-term value compounding relative to traditional closed-end funds. ODLE is available to both insurance and non-insurance investors and in both levered and unlevered versions. It also benefits from ratings assigned by two global agencies.

“With demand for private credit and long-term investment solutions accelerating, this evergreen fund represents a natural expansion of how Oaktree delivers its direct lending capabilities to clients,” said Raj Makam, Portfolio Manager for the Oaktree Direct Lending Evergreen Fund. “The structure brings our risk-managed approach to insurance investors in a format designed to support capital efficiency and consistent portfolio growth over time.”

“Insurance companies and other long-term investors are increasingly seeking portfolio structures that align with their specific balance-sheet objectives,” said Greg Halagan, Managing Director and Global Head of Insurance Solutions at Oaktree. “ODLE reflects Oaktree’s ability to pair fundamental credit expertise with thoughtful structuring designed for insurance investors, offering flexibility, stability, and the potential for long-term value compounding within a durable evergreen format.”

Oaktree was advised by Kirkland & Ellis LLP.