Avana, Oaktree Capital Form $250M Partnership

August 23, 2024

This venture will offer bridge and construction loans across asset classes.

Exterior shot of International Corporate Park in Orlando, Fla., an industrial asset owned by Oaktree Capital — International Corporate Park in Orlando, Fla., an industrial asset bought by Oaktree Capital in late 2022. *Image courtesy of JLL*

Avana Cos. and funds managed by Oaktree Capital Management L.P. have formed a $250 million venture, the Avana-Oaktree Private Credit Partnership. Through this partnership, Avana will use the capital to finance private debt in the U.S. over the next three years.

AOPCP will be funding small to medium enterprises in commercial real estate, offering access to capital through bridge and construction loans for all CRE products.

Since 2002, Avana has served more than 500 small businesses, with two-thirds of entrepreneurial customers being black, indigenous and people of color. Avana has funded $1 billion in loans to minority entrepreneurs.

A recent report details how Avana, a 22-year-old private lender with more than $1.9 billion in assets, measures and reports its social impact metrics. According to its Impact Agenda, the company is positioned to contribute to eight of the 17 United Nations Sustainable Development Goals, a framework designed to promote racial justice and economic inclusion. The report also details how Avana aligns itself with the U.N. SDGs that are most relevant to the company’s private lending and asset management services.

Recently, Avana Cos. also partnered with a national hospitality group to provide franchisers with capital to develop and renovate commercial properties across the U.S.