Oaktree Specialty Lending announces permanent base management fee reduction

Oaktree Specialty Lending announced a permanent reduction in its base management fee. Effective July 1, the base management fee will be reduced to an annual rate of 1.00% from 1.50% on gross assets, including any investments made with borrowings, but excluding any cash and cash equivalents. The new base management fee will be calculated net of the base management fees that Oaktree Fund Advisers, OCSL‘s investment adviser, waived as part of the merger of Oaktree Strategic Income II, into the company, which expire on January 23, 2025. The new base management fee is expected to increase OCSL’s NII per share by approximately 15c annually. This equates to an estimated 0.8% improvement in the company’s return on adjusted net investment income, representing a 7% increase from current levels. In addition, Oaktree waived additional base management fees such that the total amount of waived base management fees will be $1.5M for each of the three months ended March 31, 2024 and June 30, 2024.