Oaktree Capital Group LLC (NYSE:OAK), the largest distressed-debt investment management firm headed by veteran fund manager Howard Marks, reported a 65% increase in profit during the fourth quarter of 2013. For the entire year, the investment management firm said its net income increased 106%.
The shares of Oaktree Capital Group LLC (NYSE:OAK) were trading around $59.72 per share, up by more than 3% on Thursday.
Oaktree Capital’s financial results
Based on the financial statement of Oaktree Capital Group LLC (NYSE:OAK), its GAAP net income during the quarter was $64.9 million and $222 million for the full year 2013.
The investment management firm said its net income per Class A unit increased 19% to $1.62 during the quarter and 57% to $6.38 for the year compared with its results in the previous year. Oaktree Capital Group LLC (NYSE:OAK) said higher incentive and investment income contributed to its improved financial performance.
In terms of distributable earnings per Class A unit, the investment management firm posted a 3% decline to $1.33 for the quarter and a 52% increase to $5.82 for the year.
Oaktree Capital Group LLC (NYSE:OAK) said it was able to raise its gross capital to $4.1 billion in the fourth quarter and $12.5 billion for the whole year, bringing its assets under management (AUM) and management fee-generating AUM to $83.6 billion, and $72 billion, respectively despite strong fund realization and distributions.
The investment management firm approved the distribution of $1.00 per Class A unit in the fourth quarter. Its distribution increased 59% to $4.66 per Class A unit for the entire year compared in the previous year.
Disciplined approach
In a statement, Marks said, “2013 marks our strongest year of operating performance ever, as compelling investment returns across our many diversified asset classes drove the highest level of revenues, adjusted net income and distributable earnings in our history.”
“Our disciplined approach to diversification, executed through adding carefully selected step-out strategies, resulted in $12.5 billion of gross capital raised, of which $5.1 billion was for strategies that didn’t exist three years ago,” added Marks
Prior to the release of the financial results of Oaktree Capital Group LLC (NYSE:OAK), Christopher Harris, analyst at Wells Fargo & Co (NYSE:WFC) said, “Oaktree is in the process of building new strategies and growing existing strategies that should help diversify and support assets under management.”
