Oaktree Strategic Credit Fund NAV Slips 1.15% in March, First Full Month After Distribution Cut

Oaktree Strategic Credit Fund, the nontraded business development company advised by Oaktree Fund Advisors LLC, reported a net asset value per share of $22.38 across all four share classes as of March 31, 2026, a decrease of $0.26, or approximately 1.15%, from $22.64 on February 28, 2026.

The March valuation marks the first full month-end NAV reported after the fund’s late-March distribution cut and a first quarter tender offer in which validly tendered shares exceeded the fund’s expanded repurchase capacity, requiring an affiliate purchase to absorb the overage.

As of March 31, the fund’s aggregate NAV was approximately $4.4 billion, the fair value of its investment portfolio was approximately $7.0 billion, and outstanding principal debt totaled approximately $2.6 billion. The fund’s net debt-to-equity leverage ratio was approximately 0.57 times.

The board of trustees declared a regular monthly distribution on April 23 of $0.1600 per share on a gross basis for all four share classes. After application of the shareholder servicing and distribution fee, net distributions amounted to $0.1600 for Class I, $0.1553 for Class D, and $0.1442 for both Class S and Class T. The distribution is payable to shareholders of record as of April 28, 2026, and will be paid on or about May 27, 2026.

The April distribution declaration is the fund’s first full-month distribution at the reduced rate. As AltsWire previously reported, the board reset the monthly distribution from $0.18 per share to $0.16 per share effective March 25, 2026, an 11.1% reduction the fund attributed to a more conservative portfolio posture, lower leverage, higher liquidity reserves, and the impact of lower base rates and tighter credit spreads on income.

At the new $0.1600 per share monthly rate and the March 31 Class I NAV of $22.38, the fund’s implied annualized net distribution rate is approximately 8.58%, modestly higher than the 8.5% rate the fund cited at the time of the cut, which was based on the higher February 28 NAV of $22.64.

The most recent quarterly report did not include a separate update on tender activity or new repurchase requests since the first quarter tender offer that required affiliate Brookfield OSCF Investor LLC to purchase 1.7% of outstanding shares through a promissory note to satisfy demand exceeding the expanded 7% repurchase cap. The next quarterly tender offer is expected in June.

The fund is publicly offering up to $5.0 billion in shares on a continuous basis. As of the date of the filing, cumulative capital raised totaled approximately $5.25 billion across the public offering and a parallel private offering. Public offering subscriptions included 142,200,853 Class I shares for $3,325.3 million, 59,903,414 Class S shares for $1,405.6 million, 402,799 Class D shares for $9.3 million, and 202,975 Class T shares for $4.7 million. The private offering accounts for an additional 21,056,002 Class I shares for $504.6 million.

AltsWire previously reported that Oaktree Strategic Credit Fund secured an enhanced $400 million loan facility in July 2025 and expanded its borrowing capacity to $700 million under a JPMorgan Chase-led syndicate the same month, while reducing margin pricing on its credit facilities.

The fund is part of Brookfield Oaktree Wealth Solutions, the alternatives distribution platform of Brookfield Asset Management following its acquisition of a majority stake in Oaktree Capital Management. Oaktree Fund Advisors LLC serves as investment adviser. Chris McKown, chief financial officer and treasurer, signed the filing.

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